weth

Aave founder Stani Kulechov posted on the X platform that the next step of the rsETH technical recovery plan has been completed, and the loan-to-value (LTV) ratios of WETH loans across all affected networks have been restored to pre-event levels. Users can now again borrow on Aave using WETH as collateral, including through collateral and debt swaps.According to the Aave announcement, this recovery involves network deployments such as Aave V3 Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle, and Linea.

According to monitoring by PeckShield, a user lost their Alchemix Yearn yvVault position yvWETH, worth approximately $1 million, due to previously authorizing an unverified contract. This unverified contract was created 10 days ago and has vulnerabilities that can be exploited to execute arbitrary calls.

The founder of the Aave Chan Initiative (ACI), Marc Zeller, stated in a post that instead of initiating donations, it would be better to adopt the following plan:Establish a deposit vault named "DeFi United ETH"; transfer Aave's wETH income into this vault, with an annual yield cap set at 5%; tokenize and make the vault deposit certificates tradable, named "AaveETH"; gradually repay the gap through interest and principal.He suggested allowing users to deposit funds and setting the vault capacity to the worst-case gap size. Zeller indicated that if this plan had been adopted at the time, sufficient funds could have been raised as early as last Saturday. He believes that Aave itself has ample income, and both Aave DAO and Labs have several hundred million in reserves, which can ultimately resolve the issue and avoid market panic. He added that he would also deposit most of his ETH into this vault.

The Spark strategy chief monetsupply.eth tweeted criticism of Aave's decision to unfreeze the core Ethereum WETH market, arguing that this decision is poorly considered under current conditions. After the unfreezing, it will allow LST/LRT holders to establish extremely high-yield looping positions, resulting in continuous liquidity shortages for aEthWETH, making it difficult for ordinary users to withdraw normally.Taking weETH looping as an example: weETH is currently trading at a 0.5% discount, and if it returns to par within a month, the implied yield is about 6%. Combined with the basic staking yield, the total yield can reach 8%. Meanwhile, the maximum borrowing rate for core ETH on Aave is 5.15%, allowing loopers to earn an additional 2.85% yield; weETH can be leveraged up to 14 times, resulting in a maximum annualized yield of about 45%.He believes that this essentially provides LST/LRT loopers with a "free lunch," while further deteriorating the user experience for aWETH holders and stablecoin borrowers.

MonetSupply, the strategy director at Spark, posted on platform X that Aave has decided to lift the freeze on the Ethereum Core WETH market. Under the current interest rate model, LST/LRT holders can execute high-leverage circular strategies using assets like weETH, taking advantage of the approximately 0.5% discount on the weETH market price and the Aave ETH borrowing rate cap of 5.15%, to achieve an annualized return potential of about 45%.Currently, the utilization rate of the aEthWETH market has reached 100%, making it more difficult for regular depositors and stablecoin borrowing users to exit or refinance from aWETH. MonetSupply pointed out that this decision provides arbitrage opportunities without addressing the liquidity tension of aEthWETH, weakening the liquidity and experience for regular users.

Aave updated the progress of the rsETH event on the X platform, stating that the WETH reserves on the Ethereum Core V3 market have been unfrozen, and users can supply WETH again, but their loan-to-value ratio (LTV) remains at 0. Meanwhile, the WETH reserves on Ethereum Prime, Arbitrum, Base, Mantle, and Linea networks are still frozen. Aave stated that the relevant service providers will continue to advance subsequent processing and synchronize updates on the progress.

According to on-chain analyst Yu Jin (@EmberCN), due to Aave suspending WETH withdrawals, the deposit certificate aEthWETH has experienced a discount.Whale address 0x8ad withdrew 13,000 ETH (approximately 30 million USD) from the exchange, purchased 13,143 aEthWETH through Swap, and then repaid its ETH loan on Aave at a 1:1 ratio, netting a profit of 143 ETH (approximately 330,000 USD).

The DeFi protocol Fluid officially announced the launch of the aWETH redemption protocol. Due to the ETH utilization rate on the Aave platform reaching 100%, many borrowers are currently unable to withdraw funds, and they will face increasing risks if the market fluctuates. The aWETH redemption protocol will allow ETH borrowers to: • Redeem for wstETH or weETH • Immediately restore liquidity • Reduce liquidation risk.If users only borrow ETH, they can fully redeem it. If users have ETH collateral and other debts, 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 risks in DeFi, alleviate usage pressure, and support a healthier DeFi market. The initial capacity limit of the protocol is set at $1 billion in ETH.

DefiLlama founder 0xngmi posted on the X platform stating that there is currently an immediate liquidation risk for positions without WETH. weETH is close to the liquidation price on Aave, but all these loans are collateralized by ETH, so they are safe unless interest rates rise sharply.

According to on-chain analyst Ai Yi's monitoring, a whale exchanged 9.06 million dollars' worth of WETH for WBTC. In the past 20 minutes, he sold 3,437.09 ETH at an average price of 2,637.62 dollars and bought 109.61 WBTC for 82,494.79 dollars; previously, his first exchange earned him a 6.45% profit in ETH, while the second exchange earned him 9.26 WBTC (approximately 810,000 dollars).

According to on-chain analysts, a certain whale (0x455...433E) that swapped ETH held for 4 years for WBTC at the beginning of the year has recently swapped WETH back.On January 3, this address exchanged 14,145.93 WETH for 492.16 WBTC at a ratio of 0.03479, worth $44.195 million; and exchanged 578.66 WBTC back for 17,706.74 WETH at a ratio of 0.03268, worth $50.33 million.This operation increased its ETH holdings by 6.45%. Currently, this address holds 17,707 WETH and 195.49 WBTC on-chain, with a total value of $67.38 million.

According to on-chain analyst Ai Yi (@ai_9684xtpa), the whale nemorino.eth purchased 9,043 WETH at an average price of $3,085 between November 24, 2025, and January 20, 2026. The address had once seen a floating profit of $2.87 million in mid-January but did not take profits.Twelve hours ago, the address sold 3,000 WETH during the market downturn, realizing a profit of only $30,000. Currently, the address still holds 4,089.83 WETH, with a floating loss of $472,000.

According to Arkham data, at 13:34, 1784.999973938 ETH (worth approximately $5.9026 million) was transferred from Kraken to an anonymous address (starting with 0xd5d1...). Three minutes later, the address transferred 1784.97 ETH to the Wrapped Ether (WETH) contract address.

According to on-chain analyst Ai Yi (@ai_9684xtpa), the WLFI Strategic Reserve address withdrew 162.69 WBTC (approximately $15.07 million) from Aave 10 minutes ago, and then sold 27.1 WBTC through Cowswap for 770.6 WETH, worth $2.5 million, and it seems they will continue to swap.

According to GoPlus monitoring, a user lost $230,000 worth of aArbWETH and aEthLBTC to a phishing attack after signing a malicious permit and increaseAllowance transaction.

According to Arkham data, at 16:31, 4000 ETH (worth approximately 11.89 million USD) was transferred from Chun Wang (F2Pool) to a Wrapped Ether (WETH) address.

According to AI Aunt's monitoring, the smart money 0xA33...AE12C, which went long at the ETH bottom of $1729, has started to reduce its position, choosing to unwind some leverage and take profits ------ on April 23 of this year, this address bought 19,973 ETH on-chain (worth $34.54 million at the time), with a total long position in ETH reaching as high as 50,000 ETH.In the past 2 hours, it sold 9999.95 ETH at an average price of $2921.35, making a profit of $11.92 million. Currently, it has also collateralized 40,597 WETH on Aave to borrow $39.05 million.

According to on-chain analyst Onchain Lens (@OnchainLens), the U.S. government has transferred 1,934 WETH (worth $6.43 million) and $13.58 million in BUSD from the seized funds of FTX Alameda to a new wallet address. The total value of the transferred funds is approximately $20.01 million.