Many major lending markets are currently frozen or holding assets with uncertain levels of toxicity.


Aave on Ethereum, Mantle, Arbitrum, Base, Plasma, Avalanche, Ink, etc all are either effectively closed right now or hold rsETH, which has an unknown value. Compound and other lending markets are also impacted.
This makes the remaining lending markets that are outside the Kelp DAO blast radius very important. Some lending markets that appear to still be open, de minimus or no exposure to rsETH, and with at least 8 figures of stablecoin lending capacity are:
MegaETH Aave v3
Polygon Aave v3
BNB Aave v3
Ethereum Compound (USDT)
Ethereum SparkLend
There are also various Morpho and Euler vaults, but I encourage you to carefully review how they operate before borrowing, since they are fairly customized compared to the familiar large markets, do not generally offer cross-collateralization, and may behave differently than users of Aave/Compound style expect if they've not used them before.
It is important to remember that not all lending activity is simple looping and carry trades, and a functioning DeFi economy requires open lending markets. Real activity requires access to open credit sources.
The peripheral markets will need to carry the load while liquidity finds its way back into the core, and can in this case act as ballast to help stabilize the wider DeFi ecosystem faster.
As always, be sure you understand the risk profile you are taking on - more complex or concentrated markets may mean more risk being underwritten. If you see an open market on an easily accessible chain with at least $10m in stablecoin lending capacity and no rsETH exposure that I've missed, please mention it in the thread below to help surface it to DeFi users.
AAVE1.22%
ETH2.15%
MNT0.89%
ARB4.31%
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