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mETH Protocol Launches Aave-Powered Buffer Pool to Speed ETH Redemptions

The upgrade blends staking rewards with Aave lending yields to offer predictable exit liquidity for institutional users.

Overview

  • The buffer pool supplies ETH to Aave’s ETH market, targeting roughly 24-hour processing for redemptions within capacity with no additional fees.
  • A dual pathway routes small and medium withdrawals through an instant buffer and directs larger flows to Aave’s reserve for execution.
  • mETH plans to allocate about 20% of total value locked to Aave in stages to create a blended yield profile combining staking rewards and lending interest.
  • When the buffer is fully utilized during heavy demand, withdrawals revert to Ethereum’s on-chain exit queue under a first-in, first-out policy.
  • The protocol highlights integrations with Bybit and custodians such as Fireblocks, Anchorage, Copper, and OSL, support from validators including Kraken Staked, a peak $2.19 billion TVL, and no slashing incidents to date.