According to @cas_abbe, Aave currently has about $4.7B in looped ETH positions while the stETH market trades only roughly $200–250M per day, signaling a liquidity mismatch if forced unwinds occur, source: @cas_abbe. He warns that large-scale liquidations could overwhelm stETH market depth, triggering a chain reaction across ETH/stETH positions and causing severe slippage, source: @cas_abbe. For trading strategy, this points to elevated liquidation cascade risk on Aave-linked ETH/stETH collateral; traders should track Aave health factors, the stETH-ETH discount, and on-chain liquidity to manage exposure, source: @cas_abbe.