Same-Pool Funding Risk: Why Pooled Lending Mispriced LST Concentration
Aave's WETH reserve was 98.5% LST-funded going into the April rsETH event. The architectural lesson is broader than one protocol: pooled-liquidity lending mispriced concentrated tail risk because the rate framework cross-subsidizes by collateral class. Three protocols, three responses (Aave hit hardest, SparkLend the post-incident winner with the same architecture, Morpho structurally not exposed in the same way), one structural answer in the V4 risk-premium framework.