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Traders Discuss Liquidity Constraints and High Yields on Sky Collateral via Aave
11/29/2025, 05:05
AI SUMMARY
●Traders observe dried-up liquidity and high APYs for Sky collateral markets.
●Concerns arise over low available liquidity and repayment dynamics on lending platforms.
●Discussions reference Aave governance regarding stUSDS integration and risk.
Discussions among traders have surfaced regarding liquidity issues related to Sky collateral. Observations point to a lack of liquidity in specific pools, with some users noting extremely low available amounts, reportedly as low as $249 in certain instances.
The situation appears linked to high APYs resulting from the dried-up liquidity. Market participants are analyzing the relationship between stUSDS and Sky collateral borrowing, noting that Sky rewards may be effectively lowering borrowing costs, and referencing ongoing discussions in Aave governance forums regarding these assets.