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Leading Ethereum liquid restaking platform, mETH Protocol, has announced today a major liquidity upgrade that utilises Aave’s ETH market to support more efficient redemption flows for mETH.
While the upgrade marks a major milestone for the protocol, the move aims to enable accelerated ETH redemptions to support competitive on-chain and institutional yields.
According to the announcement, the key feature of the upgrade is a curated Buffer Pool mechanism designed to deliver an estimated 24-hour ETH redemptions, subject to buffer capacity availability and network conditions.
While the move aims to supply ETH into Aave’s ETH lending market, the Buffer Pool will be continuously replenished, enabling the processing of large withdrawals with near-instant liquidity and zero additional fees, all while maintaining competitive ETH base yields.
 
The move aligns with mETH Protocol’s commitment to continue advancing its mission to provide institutional-grade liquidity and capital efficiency across the Ethereum staking landscape.
While the Ethereum staking ecosystem has continued to face increasing exit delays with withdrawal queues extending past 40 days in recent months, mETH Protocol has released the Buffer Pool upgrade to remediate the challenge through a dual liquidity pathway, which includes “Instant Buffer Pool for small to medium redemptions,” and “Direct Aave ETH Market Reserve access for larger institutional transactions.”
According to the announcement, the hybrid design supports high redemption volumes with blended yields, aiming to process within a 24-hour estimate, emphasising fairness through a first-in, first-out model.
Furthermore, approximately 20% of protocol TVL will be allocated to Aave in stages, creating a blended yield profile that combines staking rewards with Aave supply interest to support deeper, more responsive liquidity.
Following the upgrade, mETH is expected to sustain a competitive APY while offering a far superior redemption experience. Hence, the protocol will work closely with the Bybit team on the Buffer Pool Upgrade, including, but not limited to, asset boost campaigns, collateral utilisation, and more.
Jonathan Low, the Growth Lead at mETH Protocol, commented on the upgrade, saying;
“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 that builds on mETH Protocol’s proven rigor and capability.”
The Buffer Pool will be dynamically replenished based on predefined thresholds designed to maintain healthy liquidity levels. During periods of unusually high redemption demand, when buffer capacity is temporarily fully utilised, withdrawals will revert to the standard on-chain exit queue, with processing times dependent on network activity and overall volume.
With the upgrade, mETH Protocol has established its position as the first liquidity staking token (LST) purpose-built for institutional exit liquidity without compromising capital utility.
While mETH Protocol leads in institutional-grade staking infrastructure with over 40 Tier-1 dApp integrations, including Ethena Labs, Compound, and Pendle, and also contributes largely to major restaking networks such as EigenLayer and Symbiotic, the upgrade signifies its expanding ecosystem. Notably, it underscores its role as a trusted source of ETH yield and a foundational liquidity layer for institutional and retail participants alike.