📊$AAVE #IntoTheBlock : Last week, the value of borrowed #WETH on Aave with a health factor between 1 and 1.025 reached $1.2B. This surge began after Aave introduced Leverage Restaking Tokens (LRTs) for 14x leverage strategies.

In such scenarios, spikes in borrow rates can trigger liquidations if loans aren't managed properly.

Over the weekend, the total value of these loans decreased to $725M as users deleveraged their positions. Reducing leverage can help mitigate the risk of cascading liquidation events.