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Odaily reported that Spark Protocol's Head of Strategy, monetsupply.eth, posted on X stating that as stablecoin market liquidity begins to tighten, the current rsETH security incident could be entering a more dangerous phase. Around 16.5% of the ETH market is backed by rsETH. If related losses are spread equally across both mainnet and cross-chain environments, rsETH-collateralized loans in eMode may face a discount of 10%-15%. When combined with depleted risk buffers, ETH depositors could still bear a remaining loss of 2%-3%. Under these expectations, ETH providers tend to exit as quickly as possible, resulting in market utilization being locked at 100%. Meanwhile, borrowing rates are not sufficient to incentivize wstETH, weETH, and other leveraged positions to deleverage and release liquidity. At the same time, since ETH cannot be withdrawn, users who have borrowed stablecoins such as USDT against ETH collateral find it difficult to close their positions in time, even if stablecoin borrowing rates rise, and the original market incentive mechanisms have been disrupted. monetsupply.eth further pointed out that in the "locked" state of 100% utilization, the DeFi market may face a cascading liquidation crisis with two major distorted incentives: first, ETH holders are unable to adjust their collateral health ratio, and liquidators cannot withdraw and sell collateralized assets, so if the ETH price drops, bad debt could accumulate rapidly; second, stablecoin depositors are instead motivated to "exit indirectly" by lending out other stablecoins, allowing them to lock in about 75% of their fund recovery at relatively low cost, as long as yields remain positive. For lending markets that rely on liquidity pools and rehypothecation, liquidity must be prioritized. However, the recent lowering of the maximum borrowing rate cap (slope2) by Aave is weakening deleveraging incentives, significantly increasing the risk of systemic market failures.

7:00 (UTC+8) - 12:00 (UTC+8) Keywords: Iran, KelpDAO, Aave, TRUMP1. Iranian Speaker of Parliament Qalibaf: War could resume at any moment;2. Aave TVL fell to $21.966 billion, down 16.78% in a single day;3. Iranian Speaker says there is still a long way to go to reach a final agreement with the US;4. Iran’s Foreign Ministry says unconditional transit through the Strait of Hormuz is “a thing of the past”;5. The TRUMP token team transferred 7.59 million TRUMP to exchanges, worth about $21.81 million;6. Due to the KelpDAO attacker depositing rsETH to Aave and borrowing ETH, many whales have started withdrawing ETH from Aave in large volumes.

According to ChainCatcher, Kamino, a Solana ecosystem liquidity protocol, stated on X that its platform and users have not been affected by the current Ethereum rsETH incident. However, as a precaution, it has suspended all interactions in core markets (USDS, LBTC, FBTC) related to LayerZero tokens. The relevant reserve assets have entered a "reduce-only" mode. Users can still make withdrawals and repay debt, but deposit and lending functions have been temporarily closed.