You probably don't realize how catastrophic the situation at $AAVE is right now. 5 billion dollars is stuck. People literally cannot withdraw their money. I watched this unfold in real time and it's terrifying how fast things collapsed. After the rsETH exploit created 200 million in bad debt, whales like Justin Sun pulled billions out immediately. They got out fine. Everyone else? Trapped. Here's what actually happens at 100% utilization: You can't withdraw your funds The protocol can't process liquidations Every market is cascading into the same stuck state Any new liquidity gets instantly drained by bots The USDT and USDC markets are completely locked with billions inside. Some desperate users are borrowing against their stuck stablecoins at 10-25% losses just to escape through other markets. But those exit routes are closing fast too. The ETH market hit 100% first. At least those people can sell their aETH tokens on Uniswap at a small loss. Stablecoin depositors don't even have that option. Think about the implications here. If the crypto market actually moves, billions in collateral can't be liquidated. That means more bad debt piling up with no way to stop it. Nobody wants to deposit liquidity now because your funds could be stuck indefinitely. I literally watched 250k in USDC liquidity appear and vanish in seconds as bots fought to exit. The contagion risk is insane. Tons of protocols rely on AAVE for their yield mechanics. Those protocols and their users are stuck too, facing losses through no fault of their own. AAVE never should have onboarded rsETH as collateral at that scale. Rumors suggest it happened due to conflicts of interest in their governance. The hacker walked away with 200 million in ETH using fake collateral. The team has been silent for over 20 hours. They're bleeding billions in TVL and trust is completely gone. I got lucky and pulled everything early when I first saw this developing. I've removed all my assets from DeFi entirely. A few percentage points in yield isn't worth this kind of systemic risk. Are you still depositing in DeFi protocols right now? How are you thinking about this contagion risk?

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