Aave V3's Risk Stewards approved supply cap increases for weETH from 1.22 million to 1.35 million and for wstETH from 1.0 million to 1.1 million on the Core instance, alongside a USDT cap increase on BNB chain and a doubling of the FBTC cap on Mantle. The weETH increase was prompted by utilization reaching 95.5%, with all top twenty suppliers carrying outstanding debt and a median health factor of just 1.06, indicating concentrated leverage. Fifteen of the top borrowers are using weETH as collateral to borrow WETH, a common ETH-basis trade structure. For Armada's crypto desk, the near-unity health factors among top weETH depositors signal that ETH liquid staking tokens are being used aggressively as repo-like leverage instruments in DeFi. Armada's LTV framework for ETH-based collateral should account for this crowded positioning dynamic, particularly if market makers or hedge funds bring similar structures to Armada's repo facility.