A significant withdrawal of ETH deposits from Aave has led to a spike in borrowing rates, causing leveraged traders to unwind positions. The borrowing APR for ETH on Aave surged to 10%, prompting traders to redeem stETH to reduce leverage. This has extended Lido's stETH exit wait time to 21 days, compared to the usual one week, and stETH to ETH conversions are trading at a slight discount. Aave's ETH collateralization rate allows for up to 14x leverage, typically yielding an annualized return of around 7%.