The Ethereum-based lending protocol, Aave, is witnessing a sharp increase in flows of Coinbase Wrapped Bitcoin (cbBTC) thanks to a new incentive program. 📈 This reflects the growing liquidity and popularity of the product, but analysts at IntoTheBlock warn of risks. Users may temporarily be unable to repay loans if the situation changes.

Since the launch of the Merit program on Aave, cbBTC has increased by 2,700 BTC, which amounts to about $200 million. However, the sudden exit of a major USDC supplier could create problems for users. 🚀