Fluid rolls out $1B-cap aWETH Redemption Protocol with Lido Finance, EtherFi, and 1inch to reduce systemic DeFi risk and unlock trapped ETH liquidity on Aave

stETH depeg in 2022 proved the failure mode — looped LST collateral on Aave can't unwind through DEX liquidity when everyone hits exits at once. Routing aWETH redemptions atomically to Lido/EtherFi issuer queues via Fluid bypasses the AMM slippage cascade entirely. $1B cap vs $2B+ wstETH/weETH collateral on Aave v3 is partial coverage, but atomic unwind capacity shifts the game theory of a depeg event.

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