Spark Strategy Director questions Aave's decision to unfreeze WETH market, potentially intensifying aEthWETH liquidity pressure

Deep Tide TechFlow News: On April 21, Spark Strategy Director MonetSupply tweeted that Aave has decided to unfreeze the Ethereum Core WETH market, but believes that under current conditions and interest rate model configurations, this move could allow LST / LRT holders to establish high-yield leveraged loop positions, and keep aEthWETH in a continuous liquidity shortage state for users who want to withdraw it. He cited weETH as an example: if weETH, which is currently trading at an approximately 0.5% discount, returns to parity within 1 month, the implied yield would be about 6%; when added to base staking rewards, it would be about 8%. Meanwhile, the Aave Core ETH borrowing rate cap is 5.15%, meaning a single loop can generate an additional yield of about 2.85%, with a maximum return of about 45%. He also said that the strategy could further worsen the user experience for aWETH holders and stablecoin borrowers.