Aave’s move to lower the slope2 cap is basically adding fuel to a cascading risk when utilization is nearing 100%. For stablecoin depositors, the only way to run is to indirectly exit by borrowing other stablecoins—75% of the funds are locked up, ETH can’t be withdrawn, and even positions can’t be closed/settled—this textbook case of a DeFi liquidity crisis is unfolding right in front of our eyes.

AAVE-2.75%
ETH-3.03%
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