Aave's Borrowing APR Rises to 10% After 620,000 ETH Unstaked

In response to the recent unstaking of 620,000 ETH, Aave's borrowing rates have surged, forcing leveraged players to redeem stETH and leading to extended withdrawal times for Lido's stETH.

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Summary

Following the recent unstaking of 620,000 ETH, Aave's ETH borrowing APR has surged to 10%, impacting leveraged players who are now compelled to redeem stETH to de-leverage. The waiting period for Lido's stETH withdrawals has increased to 21 days, with stETH trading at a discount of nearly 0.4% to ETH.

Terms & Concepts
  • APR: Annual Percentage Rate, representing the annualized interest rate for borrowing or lending.
  • stETH: Staked Ether, a token representing staked Ether in the Ethereum 2.0 network, allowing users to earn staking rewards.
  • leverage: The use of borrowed capital to increase the potential return of an investment.