Fluid Launches aWETH Redemption Protocol to Reduce Systemic Risk in DeFi, Initial Capacity Set at $1 Billion ETH

BlockBeats News, April 20: DeFi protocol Fluid officially announced the launch of the aWETH redemption protocol. Due to the 100% utilization rate of ETH on the Aave platform, many borrowers are currently unable to withdraw funds, and they face increasing risks if market volatility occurs. The aWETH redemption protocol will allow ETH borrowers to: • Redeem as wstETH or weETH • Instantly restore liquidity • Reduce liquidation risk If users have only borrowed ETH, they can fully redeem it. If users have ETH collateral and other debts, the collateral will be seamlessly converted into wstETH or weETH, while the debt remains unchanged. Fluid is collaborating with Lido Finance, EtherFi, and other ecosystem partners to aim at reducing systemic risk in DeFi, alleviating usage pressure, and supporting a healthier DeFi market. The protocol's initial capacity limit is set at $1 billion ETH.