mETH Protocol Enhances ETH Redemption Times Through Aave-Backed Buffer Pool

mETH Protocol has rolled out a new liquidity upgrade that leverages Aave’s ETH market, significantly improving the speed of ETH redemption processes to approximately 24 hours. This initiative aims to attract institutional investors looking for liquid restaking options.

Key Takeaways

mETH Protocol now offers ETH redemptions in about 24 hours using Aave's ETH market.
The introduction of a Buffer Pool provides immediate liquidity for withdrawals, improving efficiency for institutional investors.
Approximately 20% of mETH's total value locked (TVL) will be allocated to Aave.
The upgrade aims to address institutional needs for faster and clearer exit routes in the crypto market.

mETH Protocol speeds ETH redemptions with Aave buffer

mETH Protocol, a provider of liquid restaking on Ethereum, has introduced a Buffer Pool powered by Aave’s ETH lending platform. This upgrade promises to expedite ETH redemptions, slashing the typical 5-20 day wait time often experienced in traditional staking models.

Understanding the mETH Protocol Upgrade

mETH Protocol has reported a peak total value locked (TVL) of $2.19 billion and is now leveraging a Buffer Pool to facilitate faster ETH redemptions, targeting a 24-hour turnaround dependent on buffer capacity and network conditions. This marks a significant improvement over traditional Ethereum staking’s wait times, which can often stretch between 5 to 20 days.

Functioning through Aave’s ETH lending market, the Buffer Pool will allow users to withdraw ETH with immediate liquidity at no extra fees, while still enjoying the benefits of base yields from ETH staking. Notably, the protocol has successfully avoided any slashing incidents thus far.

Recent data highlights a 65% growth in spot ETH exchange-traded funds (ETFs) just within the last quarter, rising from $6.2 billion to $10.2 billion in 2025. Moreover, Ethereum's staking environment has experienced longer withdrawal queues, often exceeding 40 days.

To accommodate different user requirements, the mETH Protocol features a dual liquidity pathway: an Instant Buffer Pool for smaller redemptions and direct access to Aave’s ETH Market Reserve for larger institutional transactions. The system operates on a first-in, first-out (FIFO) basis with an emphasis on processing withdrawals within 24 hours.

In total, around 20% of mETH's TVL will gradually be utilized within Aave, thereby creating a blended yield that merges staking rewards with interest from Aave.

Jonathan Low, Growth Lead at mETH Protocol, emphasized, “Institutional capital demands clear exit routes, not opaque withdrawal queues. This upgrade transforms mETH Protocol into the most efficient liquidity gateway for ETH, unlocking the next phase of institutional adoption in on-chain finance.”

To ensure adequate liquidity, the Buffer Pool will be regularly replenished based on established thresholds. However, during high-demand periods when buffer capacity is fully engaged, withdrawals will revert to the standard on-chain exit queue, with times varying based on network activity.

mETH Protocol collaborates with custody partners such as Fireblocks, Anchorage, Copper, and OSL, allowing institutions to mint mETH in secure environments and facilitate trades on exchanges like Bybit. Additionally, mETH is part of Mantle Treasury’s ETH reserves and plays a role in the Mantle Index's yield generation.

The protocol is integrated with more than 40 decentralized applications (dApps), including Ethena Labs, Compound, and Pendle, and contributes to restaking networks, including EigenLayer and Symbiotic. Supported by various validator and custody partners, including A41, P2P.org, and Kraken Staked, mETH Protocol is designed to fit seamlessly into treasury frameworks for decentralized autonomous organizations and corporations.