Have you noticed the sharp rise in Ethereum borrowing rates on DeFi platforms like Aave? Rates have hit as high as 18%, and it’s shaking things up. But why? Many traders use a strategy called a “staking loop”: they borrow ETH, stake it to earn rewards, then borrow more using those rewards, creating a cycle. This works only if staking yields outpace borrowing costs. With borrowing costs soaring, that loop breaks. People rush to repay loans and unstake their ETH, causing some market volatility and liquidity shifts. While it might look bearish at first, this unwinding helps reduce leverage risks and could pave the way for a healthier market. What’s your take? Do you see this as a sign of deeper trouble or a necessary correction? Drop your thoughts below! #DeFi #Ethereum #Staking #CryptoCommunity