According to @EmberCN, a whale who used a looping-loan strategy to accumulate WBTC and ETH sold 9,516.8 ETH for $29.36M USDT at an average price of $3,085 to repay debt on Aave (source: @EmberCN on X). The address cut its Aave borrowings from $150M to $121M and lifted its health factor from 1.04 to 1.12, moving the account above the immediate liquidation threshold of 1.0 on Aave (source: @EmberCN on X; source: Aave Docs). The position still holds 1,560 WBTC as collateral on Aave, indicating sizeable on-chain exposure to monitor for further balance changes (source: @EmberCN on X). On Aave, positions are eligible for liquidation when the health factor falls below 1.0, so the rise to 1.12 indicates temporary relief from forced selling risk tied to protocol mechanics (source: Aave Docs; source: @EmberCN on X).

According to Ai 姨 (@ai_9684xtpa), Debank's health factor is a risk assessment metric for lending positions, originally pioneered by MakerDAO but now also employed by other lending platforms. The calculation method of Debank's health factor resembles that of Compound, differing from MakerDAO's approach which uses the formula of collateral value divided by debt. Understanding these differences is crucial for traders to evaluate risk levels in lending protocols accurately.

According to Ai 姨, a trader has significantly increased their short positions on both Bitcoin (BTC) and Ethereum (ETH), with a BTC short position of 200 coins at an average price of $102,376 and an ETH short position of 5000 coins at an average of $3442. The combined value of these positions is $37.96 million, causing their Aave health factor to rapidly decline to 1.85.