Spark Strategy Director: Aave's Unfreezing of WETH Market Will Worsen the Risk of Ordinary Users Being Trapped

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Odaily Planet Daily reports that Spark Strategy Director MonetSupply posted on the X platform stating that Aave has decided to lift the market freeze on Ethereum Core WETH.
Under the current interest rate model, LST/LRT holders can execute high-leverage recycling strategies using assets like weETH, taking advantage of approximately 0.5% discount on weETH market price and the Aave ETH borrowing rate cap of 5.15%, to achieve about 45% annualized return potential.
Currently, the aEthWETH market utilization rate has reached 100%, making it more difficult for ordinary depositors and stablecoin borrowers to exit or refinance from aWETH.
MonetSupply pointed out that this decision, without resolving the liquidity crunch in aEthWETH, provides profit opportunities for arbitrageurs, weakening the liquidity and experience for regular users.

SPK7.37%
AAVE0.75%
ETH0.38%
WEETH0.72%
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