aave just reduced slope2 (max borrow rate) for WETH across Base, Arbitrum, Mantle, and Linea stated reason is "keeping leveraged positions viable and preserving reserve stability across affected markets" my take on this is, if leveraged LST loopers of non-impaired assets (wstETH, weETH, etc) are forced into repaying their debt due to high borrow cost, this frees up withdrawal liquidity and allows agile users to withdraw at par in turn, this means that any haircut attributable to rsETH hack is spread across a smaller set of users who remain stuck in WETH, increasing the loss percentage higher loss concentration also has some negative knock-on effects on security of USD stablecoin markets with loans collateralized by aWETH, if the expected loss rate of aWETH gets too high then even trading aWETH on secondary markets will not allow liquidations to take place as the price discount would exceed the liquidation penalty, rendering liquidations unprofitable the longer this drags on the worse the risks will get, heres to hoping that someone bails out kelpdao and aave before this reaches a critical stage https://t.co/gLHYeiYERN