Fluid Launches aWETH Redemption Protocol to Reduce DeFi Systemic Risk, with an Initial Capacity of $1 Billion ETH

BlockBeats News, April 20th, DeFi protocol Fluid officially announced the launch of the aWETH redemption protocol. Due to the ETH utilization on the Aave platform reaching 100%, many borrowers are currently unable to withdraw their funds and face increasing risks if the market experiences volatility. The aWETH redemption protocol will allow ETH borrowers to:

• Redeem into wstETH or weETH

• Regain liquidity immediately

• Reduce liquidation risks

If a user has only borrowed ETH, they can redeem in full. If a user has ETH collateral and other debt, the collateral will seamlessly convert to wstETH or weETH while the debt remains unchanged. Fluid is collaborating with Lido Finance, EtherFi, and other ecosystem partners with the aim of reducing DeFi systemic risks, alleviating usage pressure, and supporting a healthier DeFi market. The protocol's initial capacity cap is set at $1 billion in ETH.