Fluid Extends aWETH Redemption Protocol To L2
Aave users on Arbitrum and Base can now swap their frozen aWETH collateral for wstETH or weETH.
Fluid extended its aWETH Redemption Protocol to L2 networks, launching first on Arbitrum and Base. The solution allows Aave users to swap their frozen aWETH collateral for wstETH or weETH, for a fee of roughly 2%. On Ethereum mainnet alone, the protocol has already facilitated $400 million in aWETH redemptions.
The service helps protocols unwind looped Aave positions more efficiently. It works by pairing protocols running looping strategies with WETH lenders on Aave. Initial liquidity was absorbed within hours of launch, and the pool is expected to be replenished. EtherFi also launched an aWETH redemption tool for Ethereum mainnet.
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Road To Devcon 8 Academic Program
The Ethereum Foundation launches a new grants program to fund regional meetups, workshops, and hackathons in the lead-up to Devcon 8 in Mumbai.
The Ethereum Foundation announced the Road to Devcon 8 Academic Program, a new initiative offering grants to support regional community meetups and events in the lead-up to Devcon 8, the largest global conference for Ethereum developers. The event is scheduled to take place in Mumbai, India, from November 3–6, 2026.
Through the program, organizers can receive funding for hosting Ethereum-focused events, including introductory sessions, technical workshops, research presentations, hackathons, reading groups, and panel discussions. Students and professors are also eligible to apply for free or discounted tickets to Devcon 8. Ticket sales are expected to begin on May 12, 2026, and applications for the program are now open on a rolling basis.
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Circle Pushes USDC Rate Hike On Aave
Circle Chief Economist Gordon Liao proposes raising the USDC interest rate slope on Aave v3 Ethereum Core from 10% to 40% to attract liquidity after the KelpDAO exploit.
Circle's Chief Economist Gordon Liao has published an Aave governance proposal to raise the interest rate slope on the USDC market on Aave v3 Ethereum Core from 10% to 40% initially, with a target of 50%. He believes that higher rates will attract new USDC liquidity providers in an effort to bring utilization back down. The proposal comes in response to the KelpDAO exploit, which has driven the USDC lending market on Aave to 100% utilization for the last four days, leaving lenders unable to withdraw their funds due to insufficient liquidity.
As the proposal notes, debt repayments are being immediately absorbed by a queued withdrawal backlog. The proposal faced community pushback as raising the rate slope can accelerate harm. Higher rates risk triggering liquidations for borrowers who are already trapped. Liquidity providers are reluctant to deposit due to the current uncertainty around a potential lender haircut.
Circle has also faced broader criticism for not offering to inject liquidity directly into its own asset pool as the issuer of USDC. Earlier this month, Circle failed to freeze USDC connected to the DPRK in the Drift Protocol exploit.
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Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.