📰 【Circle’s Chief Economist Proposes Adjusting the USDC Interest Rate Curve on Aave】

BlockBeats News, April 23. Circle’s chief economist and head of research, Gordon Liao, published a new proposal on the Aave governance forum. Gordon Liao said that USDC on Aave v3 Ethereum Core has been at near 100% full utilization for multiple consecutive days. The variable borrowing interest rate has stayed flat near the post-kink ceiling (about 14%) for a long time. Throughout the entire period, the pool’s supply shrank by approximately $60 million over the past 24 hours, because repayments were fully matched by withdrawals that were queued up. The interest rate failed to effectively settle the market, and he believes it is necessary to adjust...
$USDC The pool is almost drained, and the interest rate curve still looks stuck in place. Do these governance people really have to wait until liquidity dries up before they remember to change the parameters? If DeFi’s interest rate model can’t dynamically respond to market pressure, what’s the difference from the order-book failure of centralized exchanges? 👇👇👇👇👇