PANews reported on April 21 that MonetSupply, Spark's head of strategy, tweeted that Aave has decided to lift the market freeze on Ethereum Core WETH . Under the current interest rate model, LST/LRT holders can execute high-leverage cyclical strategies using assets like weETH : taking advantage of a 0.5% discount to the weETH market price and Aave's ETH borrowing rate cap of 5.15% , they can obtain approximately 45% annualized returns. However, the market utilization rate of aEthWETH has reached 100% , making it more difficult for ordinary depositors and stablecoin borrowers to exit or refinance from aWETH . MonetSupply points out that this decision, without addressing the liquidity shortage of aEthWETH , provides "risk-free returns" for arbitrageurs, weakening the liquidity and experience for normal users.
Spark's strategy director: Aave's unfreezing of the WETH market will exacerbate the risk of ordinary users being trapped.
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Author: PA一线
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