CoinVoice has learned that, according to on-chain analyst @ai_9684xtpa citing crypto KOL darkpool's analysis, the batch unbonding event of 620,000 ETH may be related to the massive withdrawal of ETH deposits on the Aave platform, causing a surge in borrowing rates. The large withdrawals of Aave ETH deposits in a short period led to a spike in borrowing rates, causing leveraged players to transition from enjoying interest rate spreads to incurring losses, forcing them to redeem stETH to deleverage, resulting in the current situation.
Aave ETH borrowing APR once soared to 10%. Lido's $stETH current exit waiting period has been extended to 21 days (normally within a week). There is still a nearly 0.4% discount for on-chain stETH when exchanged for ETH.
Regarding the implementation of leveraged loans, Aave's collateral rate for ETH is 93%, which means that arbitrage players can use up to 14 times leverage to gain interest rate spreads. Under normal circumstances, the annualized yield on the principal can reach ~7%. [Original link]
