Spark’s Early rsETH Delisting Shields Protocol as Aave Faces ETH Liquidity Crisis

TLDR: Spark delisted rsETH in January 2025, months before a security incident involving the asset emerged. Aave’s ETH markets on Mainnet, Arbitrum, Plasma, Mantle, and Base are now running at 100% utilization. A 15–20% ETH price drop could trigger bad debt accumulation across Aave’s illiquid lending markets. SparkLend’s higher ETH borrow rate ceiling kept yield [...]

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