Kelp's $292M vulnerability, the last thing the market wants to see is for losses to be spread across all users. The probability of socialized losses has already been kept very low, but the real trouble is how to fill the gap in rsETH. For $ETH , the problem isn't with the chain itself, but with the trust in the restaking line being taken out and re-priced. $ETH

Wu Shuo learned that Circle Chief Economist Gordon Liao submitted an ARFC proposal stating that the Aave v3 Ethereum mainnet USDC liquidity pool has been close to 100% utilization for about four consecutive days, with borrowing rates maintained around the 14% cap but unable to clear the market. Liquidity remains tight, and both lending and borrowing scales are shrinking, mainly driven by approximately $300 million in borrowing demand following the rsETH event and the insensitivity of borrowers to interest rates. The proposal suggests increasing Slope 2 from about 10% to 50% (intermediate transition to 40%), and lowering the optimal utilization rate from 92% to 85% to raise the interest rate ceiling and attract liquidity back, allowing the liquidity pool to recover market clearing through price mechanisms. It also recommends temporarily pausing or fixing Slope 2 risk oracle during abnormal periods, with LlamaRisk and Aave Labs executing temporary parameters first and completing governance approval within 5 to 7 days.

$ETH Ethereum will definitely break 2600 today. Those who follow along will profit!