Delays in Liquidations on Aave and Spark Highlight Growing Concerns Over ETH LST and LRT Liquidity

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The decentralized finance (DeFi) world is changing quickly, and platforms like Aave and Spark are becoming crucial for users who want to borrow and lend assets, putting up various kinds of collateral. But in the week gone by, some users have noticed that when it comes time for the platform to carry out a liquidation order, there’s a delay. IntoTheBlock data suggests that’s because certain Ethereum-based liquid staking tokens (LSTs) and liquid redemption tokens (LRTs) just don’t have the kind of # liquidity you need to make a DEX work well. Executing these liquidations has become increasingly difficult. We touched

The post Delays in Liquidations on Aave and Spark Highlight Growing Concerns Over ETH LST and LRT Liquidity appeared first on The Merkle News.

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