Wu Shuo learned that Circle Chief Economist Gordon Liao submitted an ARFC proposal stating that the Aave v3 Ethereum mainnet USDC liquidity pool has been close to 100% utilization for about four consecutive days, with borrowing rates maintained around the 14% cap but unable to clear the market. Liquidity remains tight, and both lending and borrowing scales are shrinking, mainly driven by approximately $300 million in borrowing demand following the rsETH event and the insensitivity of borrowers to interest rates. The proposal suggests increasing Slope 2 from about 10% to 50% (intermediate transition to 40%), and lowering the optimal utilization rate from 92% to 85% to raise the interest rate ceiling and attract liquidity back, allowing the liquidity pool to recover market clearing through price mechanisms. It also recommends temporarily pausing or fixing Slope 2 risk oracle during abnormal periods, with LlamaRisk and Aave Labs executing temporary parameters first and completing governance approval within 5 to 7 days.