CryptoSlate
An unidentified whale has repeatedly withdrawn about $290 million in USDC from Aave and Sky around midnight UTC, including approximately $134 million from Aave. Bitquery says the funds typically return about 30 minutes later, but the temporary outflows have pushed Aave USDC utilization to 100% on six nights and lifted median annualized borrowing rates from 4.5% to 13.8%.
Why it matters
The withdrawals can sharply restrict liquidity for other Aave depositors even though the funds later return. In the Oct. 26-27 example, Aave had about $173 million in available USDC before the whale removed $134.1 million, roughly 78% of that liquidity. Other depositors were left sharing less than $46 million in immediately withdrawable USDC until the funds came back.
Bitquery tracked the wallet cluster moving USDC around midnight for 394 consecutive nights since Sept. 30, 2025, with the earliest identified midnight transfers dating to July 2024. The owner and motive remain unknown. A possible link to stablecoin rewards has been raised, but investigators have not established whether the wallet received additional payments.
Market impact
Aave’s median USDC utilization rose from 94% to 99.6% during October. Automated rate adjustments pushed borrowing costs higher during the liquidity squeeze, then lower as funds returned. Bitquery said the elevated rates lasted only as long as the shortage, limiting the additional interest borrowers paid.
Aavescan data showed the pool’s borrowing rate easing from 13.27% at midnight UTC on Oct. 28 to 5.45% on Oct. 29. That points to a less severe squeeze in the latest observed period, but the recurring transfers could still affect near-term liquidity for Aave users.
Frequently asked questions
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How much USDC does the whale withdraw from Aave?
About $134 million of the roughly $290 million in recurring withdrawals comes from Aave, with the remainder coming from Sky.
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How long do the USDC withdrawals typically last?
The funds typically return about 30 minutes after being withdrawn around midnight UTC.
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What happened to Aave's USDC borrowing rates during the withdrawals?
Median annualized borrowing rates rose from 4.5% to 13.8% during the liquidity squeeze, then fell when funds returned.
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How did the withdrawals affect Aave depositors' access to USDC?
Utilization reached 100% on six nights. In one example, less than $46 million in immediately withdrawable USDC remained for other depositors until the funds returned.
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Do investigators know why the whale moves USDC at midnight?
No. Bitquery has not identified the wallet owner or established a motive. A possible connection to stablecoin reward snapshots has been raised, but additional payments have not been confirmed.
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