Spark Strategy Lead monetsupply.eth states that Aave has recently unblocked the Ethereum core WETH market. Under the current interest rate model, this could provide high leverage recycling opportunities for LST/LRT assets, thereby intensifying aWETH liquidity shortages. Their analysis suggests that when pledged assets (such as weETH) are expected to revert to a discount and yield higher than borrowing rates, users can amplify returns through cyclical borrowing, further occupying liquidity in a high-utilization environment. Additionally, such strategies also present arbitrage opportunities when aWETH is discounted, which may impact market stability and the withdrawal experience for some users. They believe that the above mechanisms could lead to continuous concentration of funds in recycling positions and amplify liquidity pressure under current market conditions.