The Oct. 11 crypto flash crash sent shockwaves across DeFi markets, triggering record volumes and all-time-high protocol fees, according to data from
What Friday’s flash crash looked like in onchain metrics: pic.twitter.com/aNZF7mKvVk
— DefiLlama.com (@DefiLlama) October 14, 2025
Within hours, total open interest across perpetual decentralized exchanges (Perp DEXs) collapsed from $26 billion to under $14 billion, erasing nearly half the onchain leverage in a single trading day.
Yet even as traders were liquidated and markets swung violently, protocol activity surged. Lending fees topped $20 million in one day, DEX volumes hit $177 billion for the week, and stETH yields spiked past 7%, underscoring a liquidity storm that tested every corner of decentralized finance.
$12 Billion in Leverage Wiped from Perp DEXs
The sharp drop in open interest across perpetual exchanges marked one of the most significant onchain deleveraging events of 2025.
According to DeFiLlama, Perp DEX open interest fell from $26 billion to below $14 billion, reflecting mass unwinding across leading derivatives platforms including dYdX, GMX, Hyperliquid, and Aevo.
Market analysts linked the crash to cascading liquidations triggered by sudden sell pressure in BTC and ETH markets, combined with thin weekend liquidity.
In total, over $12 billion in open interest vanished, one of the largest onchain deleverages since 2022.
The scale mirrored centralized market liquidations earlier in the week, where Coinglass data recorded more than $19 billion in positions cleared in 24 hours, underscoring how deeply correlated CEX and DEX markets have become.
Lending Protocol Fees Hit All-Time Highs
While leveraged traders faced record liquidations, lending protocols enjoyed their most profitable day ever.
DeFiLlama data shows lending platforms generated over $20 million in fees on Friday, marking a new all-time high for the sector.
Protocols like Aave, Compound, and Morpho saw borrowing costs spike as traders rushed to cover margin calls or reposition into stablecoins during the volatility.
The sudden demand for liquidity pushed utilization rates higher across lending pools, particularly for USDC, USDT, and ETH, creating a fee bonanza for lenders and protocol treasuries alike.
The surge in lending activity highlighted a key dynamic in DeFi: even in extreme downturns, protocol revenue can soar when volatility drives borrowing and liquidations.
Weekly DEX Volume Hits $177 Billion, A New Record
Despite the turmoil, trading activity across decentralized exchanges hit unprecedented levels.
DeFiLlama reported that weekly DEX volume surpassed $177 billion, setting a new record for decentralized trading.
That figure represents nearly a 30% increase over the previous week’s total, signaling how traders flocked to onchain venues during the selloff.
Uniswap, Curve, and Jupiter led the surge, while perpetual DEXs like Hyperliquid and dYdX contributed heavily to derivative flows.
The record-breaking week further solidifies DEXs as a liquidity backbone for DeFi, even under market stress.
On-chain observers noted that while spot DEX trading saw a spike in slippage and gas fees, execution remained stable, with no major outages, a sharp contrast to the system-wide halts often seen in centralized venues during similar events.
Total Borrowed Falls Below $50 Billion
Amid the volatility, overall borrowing across lending protocols dropped sharply.
Total borrowed funds across DeFi lending platforms fell below $50 billion, marking the first time since August that total onchain debt slipped under that threshold.
The retreat reflected a broad deleveraging as users repaid loans, unwound yield strategies, or moved collateral into stable positions.
For major lenders like Aave and Compound, outstanding debt positions fell by more than 10% day-over-day, signaling that traders were actively reducing exposure in the wake of extreme volatility.
Still, the rapid repayment of loans contributed to network congestion and heightened gas fees, especially on Ethereum, where liquidation bots competed to close risky positions.
stETH APY Spikes Above 7%
One of the more surprising side effects of the crash came from Ethereum staking yields.
According to DeFiLlama, stETH APY briefly spiked over 7%, its highest level in months, as validator rewards surged due to heavy transaction volume and elevated priority fees.
The APY jump drew renewed attention to liquid staking tokens, which remain a core yield source across DeFi.
For context, Lido’s stETH, the largest liquid staking derivative, typically offers around 3.5–4.5% APY. The spike to 7% reflected extreme network demand as traders arbitraged positions, repaid debt, and bridged assets between chains.
Analysts expect yields to normalize in the coming days, but the brief surge underscored how DeFi rewards can fluctuate sharply during volatile market conditions.
DeFi Volatility, Onchain Strength
Despite the flash crash’s chaos, DeFi infrastructure showed resilience.
Perp DEXs, lending markets, and staking protocols all absorbed record transaction loads without major outages or oracle failures, an improvement from the system weaknesses exposed in earlier drawdowns.
While total value locked (TVL) dipped temporarily, network activity metrics such as fees, volume, and user counts remained elevated.
Market watchers say this may mark a turning point for DeFi maturity: higher volatility now drives more protocol revenue, not less.
DeFiLlama’s aggregated data supports this trend, the same crash that erased $12 billion in leverage also created all-time highs for fees and trading activity.
That dynamic underscores a growing separation between price pain and protocol health, while token prices drop, the underlying infrastructure profits from volatility.
The Oct. 11 flash crash reminded traders that crypto’s decentralized layer is both fragile and antifragile. Open interest can halve in hours, yet DeFi protocols thrive under pressure.
With Perp DEX leverage cut in half, fees at record highs, and stETH yields surging past 7%, the ecosystem continues to prove its adaptive strength.
If anything, DeFiLlama’s data confirms one thing: decentralized markets are now too large, too liquid, and too resilient to ignore, even when the market burns.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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