According to the new update, Aave has reopened the Ethereum Core WETH market after full utilization, while yield strategies using discounted weETH and capped ETH borrowing continue to pressure available liquidity.
Aave decided to unfreeze the Ethereum Core WETH market after utilization in the aEthWETH market reached 100%. The new information adds that MonetSupply said LST and LRT holders could exploit weETH’s roughly 0.5% discount together with Aave’s 5.15% ETH borrow rate cap to generate about 45% annualized yield, contributing to liquidity strain for regular users. This expands the context around the previously announced aWETH redemption protocol, which was introduced as Aave’s ETH liquidity tightened.