A whale executed a significant trade involving a huge quantity of Ethereum (ETH), according to data reported today by market analyst Onchain Lens.
The whale deposited 7,501 ETH ($23.59 million) into Binance, making a profit of $9.19 million as per the data. This trade was not all that simple as it involved a more complicated financial maneuver.
The Investor’s Strategic Moves
As stated in the data, the whale initially withdrew 7,615.5 ETH ($14.83 million) from Binance. He then deposited the tokens into Aave V3, a DeFi platform recognized for its borrowing and lending offerings.
After depositing the ETH, the investor borrowed USDT (specific amount not stated) from Aave V3. The borrowing was enabled by the collateral given by the deposited ETH. In other words, the investor deposited the ETH tokens into Aave V3 and used them as collateral to borrow USDT. Traders commonly used this strategy to access greater trading activities without putting their underlying assets into sale.
The deposits made into Aave V3 enabled the investor to earn returns on his ETH holdings. According to the data, after 26 days, the trader earned an extra 28.63 ETH. This means the whale generated the gains through various strategies since the USDT borrowed enabled him to invest the funds into other DeFi revenue-generating mechanisms, and move the returns back to ETH.
Today, the whale deposited 7,501 ETH ($23.59 million) into Binance, a move that enabled him to earn a $9.19 million profit. He currently holds 143.14 ETH in the Aave V3 platform, showing he is still earning interest and looking for other opportunities to exploit.
The Power of DeFi
This trade shows that the investor is an experienced DeFi user who knows how to take advantage of borrowing and lending platforms to make substantial profits. His capability to leverage such a profit-making method indicates the ability and sophistication of the DeFi ecosystem.
Secondly, the trade showcases the role that Aave V3 plays in offering an advanced trading platform that enables wealthy investors to collateralize their Ether holdings and borrow USDT for further investment opportunities.
