Aave rsETH liquidity wahala: $272M wstETH/CBBTC comot, ETH dey 100% used
Aave don face renewed liquidity wahala after dem report say KelpDAO rsETH bridge get exploit. Big withdrawals from Aave include about 98,032 wstETH (~$272M) and 3,000 cbBTC (~$221.6M), wey bring back worry say dem thief rsETH use am as collateral for Aave.
The same OTC wallet before dey hold about ~163,405 ETH (~$440M). Because direct ETH withdrawals dey constrained, e talk say e swap 7,438 aEthWETH (~$16.83M) into stETH and ETH, collect 1,930 stETH and 5,272 ETH, and dem estimate say e loss 237 ETH (~$540k). The wallet still reportedly keep about ~10,000 ETH on Aave.
As the exploit story blow up—claims range from about ~$292M exposure to ~$236M borrowed against rsETH collateral—Aave’s ETH pool reportedly reach 100% utilization. That one leave almost no ETH for withdrawals, wey usually make exit liquidity worse during selloffs. AAVE reportedly drop about 20% that day, and wide reports talk about roughly $5.4B in ETH outflows as traders react to tighter ETH liquidity and more AAVE selling headlines.
Bearish
Di short-term, di news bad for Aave price because e get (1) exploit story wey concern rsETH collateral, (2) big wstETH/cbBTC outflows, and (3) report say ETH pool dey 100% utilized — these things dey press withdrawal liquidity and dey raise liquidation/selloff risk. Traders dey usually front-run uncertainty by dey reduce exposure and dey sell AAVE when dem dey question collateral strength.
For long term, e go depend on verification and wetin dem go do (damage assessment, protocol response, and collateral management). If teams confirm say losses dey contained and liquidity calm down again, downside fit reduce. But as long as borrowing-against rsETH and utilization metrics still dey doubt, volatility and outflow risk likely go continue.