Spark: The delisting of rsETH in January sparked strong dissatisfaction among ETH cyclical leverage users, but has now proven to be a prudent strategy.

According to Mars Finance, monetsupply.eth, head of protocol strategy at Spark Protocol, stated on the X platform that Spark delisted low-utilization assets such as rsETH in January and continued to tighten collateral and functionality, which at the time sparked strong dissatisfaction among "ETH revolving leverage" users. Furthermore, Spark has long set high maximum interest rate caps for the ETH lending market, and in the past year, it transferred some business and revenue to Aave (whose ETH lending rate once dropped to 10% or below). However, in the current crisis environment, this strategy has proven to be more prudent. Currently, SparkLend still maintains ample ETH withdrawal liquidity, while Aave has experienced liquidity shortages and even "lock-up" situations on the Ethereum mainnet and in multi-chain markets such as Arbitrum and Base. monetsupply.eth further warned that because ETH is a core collateral asset, when market utilization reaches 100%, collateral liquidation will not be able to be executed normally. Liquidity depletion not only affects the depositor experience but may also pose systemic risks. Given the current liquidity shortage on Aave, a 15%-20% drop in the price of ETH could lead to a significant accumulation of bad debts (coupled with the potential impact of the rsETH incident).