Post #2309

After the $292M rsETH exploit, liquidity left Aave fast, but the more telling signal sits in the health factor distribution. A large share of debt is still clustered around 1.1–1.5, with thinner buffers closer to 1.0 than you would want after a shock. That means the system stabilized on the surface, but not fully reset underneath. It would not take a large move in collateral to push a meaningful portion of positions into liquidation range. The cascades come from how much leverage is left sitting near the edge afterward.