Fluid launches the aWETH redemption protocol to mitigate systemic risks in DeFi, with an initial capacity of $1 billion in ETH.

Mars Finance reported on April 20th that the DeFi protocol Fluid officially announced the launch of the aWETH redemption protocol. Due to ETH utilization reaching 100% on the Aave platform, many borrowers are currently unable to withdraw funds, and they face increasing risks if the market fluctuates. The aWETH redemption protocol will allow ETH borrowers to: • Redeem for wstETH or weETH • Instantly restore liquidity • Reduce liquidation risk. Users who only borrowed ETH can fully redeem. If users have ETH collateral and other debt, the collateral will be seamlessly converted to wstETH or weETH, while the debt remains unchanged. Fluid is collaborating with Lido Finance, EtherFi, and other ecosystem partners to reduce systemic risk in DeFi, alleviate usage pressure, and support a healthier DeFi market. The protocol's initial capacity is limited to $1 billion in ETH.