Aave saw a correction across assets in the cryptocurrency market in September.
The Ethereum-based lending platform said this is common for the cryptocurrency market and the asset remains attractive.
The platform said through this volatile market it has maintained its attractiveness for crypto assets holders who have deposited $3.5bn.
Aave said its flash-loans peaked last month with $187.5m, enabling users to liquidate positions on other platforms with a minimal amount of fees.
In August, Aave told Peer2Peer Finance News that the Covid-19 crisis may lead to more people turning to crypto lending.
“I think it’s difficult to say how the pandemic will effect crypto lending, however, many people are struggling more financially and looking for different ways to maximise their passive income, so the interest rates on crypto lending platforms may become even more attractive,” Isa Kivlighan, digital marketing manager at Aave, said at the time.
Last month Aave released its governance for people to vote on the migration of the Lend token to the Aave token.
In July, Aave launched an ‘undercollateralised lending’ service which allows users to take out loans without having to deposit collateral.
Instead, depositors can delegate their credit lines to other users, generating a legal agreement which allows lending to take place.
The legal element of the transaction is being handled by OpenLaw, a digital contracting firm that develops blockchain-based legal agreements.
Until January this year, Aave was the parent company behind crypto-backed peer-to-peer platform ETHLend, which allowed borrowers to request loan amounts and post other digital currencies as collateral, while paying interest on the loans.