Fluid launched the aWETH Redemption Protocol, allowing Aave lenders to swap aWETH collateral for wstETH or weETH at a cost of approximately 2%. The service aims to help Aave users stranded by the market cascade amid frozen markets on Aave following the KelpDAO bridge exploit. It allows users to regain control of a liquid, unaffected collateral asset without needing to close or unwind their position.

Fluid is able to offer the service because it operates a leveraged looping vault holding $144 million in Aave positions that it is looking to unwind. By buying aWETH from trapped lenders and using it to repay its own ETH debt on Aave, Fluid simultaneously frees users, creating a mutually beneficial solution. The solution currently only supports swaps on Ethereum mainnet.

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