📰 【Chief Economist of Circle Proposes Adjustment to USDC Interest Rate Curve on Aave】

BlockBeats News, April 23 — Gordon Liao, Chief Economist and Head of Research at Circle, released a new proposal on the Aave governance forum. Gordon Liao stated that USDC on Aave v3 Ethereum Core has been near 100% utilization for several consecutive days. The variable borrowing rate has remained flat around the post-kink cap (approximately 14%), while the pool's supply has shrunk by about 60 million USD in the past 24 hours, as repayments are fully matched by queued withdrawals. The rate has failed to effectively clear the market, and he believes it is necessary to...
$USDC The pools of are almost drained, and the interest rate curve is still dead flat. Do these governance folks have to wait until liquidity is exhausted before they think of adjusting parameters? If DeFi's interest rate model cannot dynamically respond to market pressures, what’s the difference from the order book failure of centralized exchanges? 👇👇👇👇👇