Analysis: If ETH price falls rapidly, Aave may accumulate more bad debt due to liquidation failure

Odaily News: Renowned developer and Yuga Labs Vice President 0xQuit posted on X, stating that the situation at Aave is dire and worsening. Multiple liquidity pools have reached 100% utilization, leaving depositors "locked in" and the protocol facing the risk of further bad debt... If the ETH price falls and Aave is unable to liquidate effectively (which is currently the case), it will ultimately lead to inefficient liquidations, resulting in more bad debt. If the issue is not resolved quickly, this situation could snowball.