Spark: The delisting of rsETH assets in January once triggered strong dissatisfaction among ETH margin trading users, but it has now been proven that the strategy was cautious.

ME News Report, April 19 (UTC+8), Spark Protocol’s strategy lead monetsupply.eth stated on the X platform that in January of this year, they removed low-usage assets such as rsETH and reduced collateral types and functionality, a decision that drew dissatisfaction from “ETH leverage loop” users. At the same time, Spark adopted a high interest rate ceiling strategy in the ETH lending market. Although this approach caused some business and revenue to shift to Aave over the past year, it has proven to be more cautious during the current market crisis. Currently, SparkLend still maintains sufficient ETH withdrawal liquidity, while Aave faces liquidity shortages or even lock-ups across multiple chains. monetsupply.eth warned that since ETH is the core collateral, when market utilization reaches 100%, collateral liquidation becomes impossible, and liquidity exhaustion could pose systemic risks. Especially in cases where Aave’s liquidity is insufficient, a 15%-20% drop in ETH price could lead to significant bad debt accumulation. (Source: MLion)