weETH Surpasses $4 Billion in Deposits on Aave V3
WeETH has surpassed $4 billion in deposits on Aave V3's Ethereum market, making it the second-largest asset by deposit volume on the largest lending protocol in DeFi.
This milestone is significant because native ETH itself remains the only asset with a larger deposit base.
The growth of weETH on Aave can be attributed to the deliberate governance decisions made by the Aave DAO to integrate liquid restaking tokens into its collateral framework, allowing users to earn restaking rewards and deposit their weETH into Aave to borrow against it.
WeETH's dominance on Aave is a result of its multichain expansion across Arbitrum, Base, and Scroll, which has created a multi-layered reward structure that makes deposits more attractive than plain ETH in many cases.