TL;DR
- Trend Research cut Aave wrapped Ether from 651,170 ETH to roughly 247,080 and sent 411,075 ETH to Binance as ETH fell 30%.
- Lookonchain placed liquidation levels at $1,698 to $1,562, squeezing the Jack Yi Aave borrowing loop.
- Arkham and Onchain Lens tracked 94,000 ETH moved in two hours and 235,588 ETH total deposited to repay stablecoin debt; Feb. 4 sales lifted the threshold from $1,880 to $1,830.
Trend Research is rapidly cutting Ether exposure as ETH slid toward levels that threaten liquidation on its Aave backed leverage stack. The firm is shifting from accumulation to defense as ETH tests critical thresholds. Onchain figures showed about 651,170 ETH in Aave Ethereum wrapped Ether on Sunday, falling by 404,090 to roughly 247,080 by Friday. Arkham data indicated Trend transferred 411,075 ETH to Binance since the start of the month. The moves came as ETH fell almost 30% in a week to as low as $1,748 and later traded near $1,967 at time of writing.
Deleveraging accelerates as Aave liquidation bands tighten
Trend Research has been tied to Jack Yi, founder of Hong Kong based Liquid Capital, and its approach relied on buying ETH, pledging it on Aave, borrowing stablecoins, then purchasing more ETH. That leverage loop is being unwound as liquidation bands narrow between $1,698 and $1,562. Lookonchain flagged those levels in a Friday post. Yi wrote he remains bullish while admitting he called a bottom too early and will keep waiting for recovery while “managing risk.” Trend surfaced after the October 2025 $19 billion liquidation event, when it began aggressive Ether accumulation during market crash.
Exchange transfers have become a recurring tool for deleveraging. Trend is using Binance liquidity to convert collateral into debt service under stress. Arkham Intelligence showed another 23,000 ETH, worth $43.98 million, sent to Binance to repay outstanding Aave debt, contributing to more than 94,000 ETH, about $200 million, moved in roughly two hours. Onchain Lens reported Trend deposited a total 235,588 ETH valued near $516.16 million into Binance to sell and repay stablecoin debt used to go long ETH. At peak, the borrowed stablecoins reached about $958 million. Sales reduced collateral and lowered liquidation risk.
Trend began the unwind on Feb. 4 by selling 33,589 ETH for $79 million and using $77.5 million in USDT to reduce debt, lifting its liquidation threshold from $1,880 to $1,830. Each repayment raises the buffer, but the margin stays thin while ETH remains volatile. Lookonchain said Trend still holds 356,150 ETH worth $671 million with liquidation prices between $1,562 and $1,698, while ETH traded near $1,923. The same update noted other leveraged holders: Joseph Lubin and two unknown whales with liquidation prices $1,329 to $1,368, and 7 Siblings with liquidation prices $1,075 and $1,029.
