BΞAΞ.eth 🦇🔊

What @0xfluid did here, isn't charity. It is simply meeting the demands of aWETH holders to regain immediate liquidity, reduce exposure to liquidation risk, eliminate the need to wait for resolution on rsETH bad debt, and help Fluid to pay down its own Fluid Lite Vault looping position holding $144M. On any normal day, Fluid Lite Vault accepts ETH deposits, swaps for wstETH or weETH, and deposits them as collateral on Aave V3 and Fluid, where it then borrows ETH against them, swaps for more collateral, borrows more ETH, etc and generates ETH yield. Because aWETH holders on Aave cannot withdraw their collateral due to 100% utilization, and in many cases, have borrowed against their aWETH collateral (stables or ETH), Fluid created a tool to meet everyone's needs: 1⃣ Fluid buys your aWETH 2⃣ Then, sells you wstETH or weETH (2% cost) 3⃣ Your newly acquired wstETH or weETH lands in your Aave position, maintaining your current debt position on Aave (not any vampire attack) Ultimately, you are still in an Aave position but now instead of ETH with say borrowed USDC or USDT, you have wstETH or weETH collateral with borrowed stables. The result is you gain full control of your position again, the ability to exit if you like by having a different collateral (wstETH or weETH). Meanwhile, Fluid further unwinds its own looping position, having withdrawn some wstETH or weETH that was sold to you, plus using the newly bought aWETH to pay back its own ETH debt on Aave. Fluid is basically a mega-looper on Aave V3 and also now a mega ETH buyer of Aave ETH (aWETH), helping you to regain control of your liquidity by switching your collateral to something unaffected by this weekend, wstETH and weETH. It's a win-win. Plus it does the markets some good to safely unwind more leverage out of ETH loops on Aave. @smykjain and @0xfluid team play on another level 🐐