Fluid's Redemption Protocol Enables $400m aETH Exit From Aave as ETH Utilization Hits 100%, Castle Labs Says

Castle Labs reported that Aave's ETH utilization rate has reached 100%, prompting Fluid to roll out an aWETH redemption protocol. Over the past two days, the mechanism has enabled users to redeem 166,772 aETH, valued at about $400 million. The protocol draws much of its efficiency from Fluid's Lite Vault, which uses wstETH and weETH as collateral backing ETH debt on Aave. Those positions help offset users' ETH collateral exposure, supporting redemptions at scale.