According to Castle Labs, the new redemption tool helped users withdraw 166,772 aETH, valued at about $400 million, within two days during a period of full ETH liquidity usage on Aave.
Fluid introduced an aWETH redemption protocol after Aave’s ETH utilization rate reached 100%, according to Castle Labs. The launch was aimed at helping users regain access to liquidity when all available ETH in Aave’s lending pool had effectively been borrowed. Castle Labs said the protocol enabled users to redeem 166,772 aETH, worth roughly $400 million, in two days. In decentralized lending, a 100% utilization rate typically means suppliers face difficulty withdrawing the underlying asset immediately because available liquidity has been exhausted.