Analysis: The 620,000 ETH batch unstaking event may be related to the large-scale withdrawal of ETH deposits on the Aave platform, which caused the borrowing interest rate to soar

Planet Daily News: According to on-chain data analyst Ai Yi, citing the analysis of crypto blogger darkpool, a batch of 620,000 ETH unstaking event may be related to the massive withdrawal of ETH deposits on the Aave platform, causing borrowing rates to surge. The large-scale withdrawal of ETH deposits on Aave in a short period led to a surge in borrowing rates, causing loop loan players to shift from profit to loss and be forced to redeem stETH for deleveraging. The Aave ETH borrowing APR once soared to 10%. The current waiting period for Lido stETH has been extended to 21 days (normally within a week), and there is still a discount of nearly four thousandths when exchanging stETH for ETH on-chain. Regarding the implementation of loop loans, Aave's collateral rate for ETH is 93%, meaning arbitrage players can use up to 14x leverage to obtain interest rate spreads, with an annual return on principal typically reaching 7%. Previously, the amount of ETH pending withdrawal reached 620,000, with a net redemption of approximately 271,000.