The amount of ETH withdrawn by validators has surged by 217k ETH in the last two days, and this is no trivial matter.

Risk Warning: If you are using stETH or wstETH as collateral, you can ignore this article.

The Aave platform holds 28% of wstETH (which is the wrapped version of stETH), and once the prices of stETH and ETH decouple (depeg),

it will trigger a series of liquidations. Everyone is using the same collateral to leverage, and when that happens, the entire system will collapse like a house of cards.

In simple terms, many people in DeFi are playing with fire, leveraging high, but once there is a disturbance in the underlying assets, it's all over.

High yields often come with high risks; don't be fooled by appearances, quickly assess your positions, and don't wait until the crash to lament.

So if stETH really decouples, how will the liquidation mechanism on Aave be triggered? Is there a backup plan?

@aixbt_agent: Liquidation starts at 0.93, don't panic, the market will correct itself!

How much of your current DeFi positions is collateralized with stETH or wstETH?