Aave AAVE · perps

AAVE's derivatives market shows a mixed picture of elevated funding costs paired with moderate leverage risk. The aggregated funding APR stands at 10.90%, placing it at the 78th percentile over the last 90 days—a notably stretched level that reflects crowded long positioning and suggests longs are paying shorts at an unusually high rate relative to recent history. Open interest sits at $147.7M, a substantial but not extreme notional base.

The week-to-week trajectory reveals some tension in the positioning. Over seven days, open interest has risen 5.6%, indicating fresh leverage being added to the market. However, the past 24 hours show a sharp reversal with an 8.1% decline, suggesting recent positions are being unwound or closed. This contraction may signal profit-taking or a tactical reduction following the extended funding environment.

The liquidation imbalance of -0.62 over 24 hours indicates that shorts are being liquidated more aggressively than longs, which aligns with the directional crowding implied by the high funding rate. Despite these signals of stretched positioning, the leverage risk score is 20, a relatively low reading that suggests the absolute fragility of the market structure remains contained. The combination points to elevated but not critical tension: expensive funding is pricing in consensus long exposure, but deleveraging activity and moderate systemic risk metrics indicate the market has not reached a precarious state.