Analysis: The Mass Unstaking of 620,000 ETH May Be Linked to a Surge in Borrowing Rates Caused by Large Withdrawals of ETH Deposits on Aave
According to Foresight News, X user darkpool analyzed that the mass unstaking of 620,000 ETH may be related to a surge in ETH withdrawals from the Aave platform, which caused borrowing rates to spike. The rapid withdrawal of ETH deposits from Aave led to soaring borrowing rates, forcing leveraged users to redeem stETH to deleverage, resulting in the current situation. The Aave ETH borrowing APR once soared to 10%. The Lido stETH exit waiting period has now been extended to 21 days (normally within a week), and there is still a discount of nearly 0.4% when swapping stETH for ETH on-chain.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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