Spark’s rsETH Delisting Protects Users as Aave ETH Utilization Hits 100%

Aave’s ETH markets on Mainnet, Arbitrum, Plasma, Mantle, and Base have reached or neared 100% utilization, blocking withdrawals and amplifying liquidation risks amid constrained liquidity. Spark’s January 2025 delisting of rsETH and low-usage collateral, plus a later rsETH security incident, insulated its protocol and users while higher borrow-rate ceilings preserved ETH withdrawal access. Analysts highlight that a 15–20% Ethereum price drop could trigger rapid bad-debt buildup on Aave, intensifying DeFi contagion risks and short-term downside pressure.