ARFC proposal suggests raising the interest rate parameters of the Aave v3 Ethereum mainnet USDC liquidity pool.

ME News: On April 23 (UTC+8), Circle Chief Economist Gordon Liao submitted an ARFC proposal stating that the USDC liquidity pool on Aave v3 Ethereum mainnet has been near 100% utilization for about 4 consecutive days, with the borrowing rate stuck near the 14% cap but failing to clear the market. Liquidity remains tight, and both deposit and borrow volumes are shrinking simultaneously. The proposal notes that the situation is primarily driven by approximately $300 million in borrowing demand following the rsETH incident, along with borrowers’ low sensitivity to interest rates. The proposal suggests increasing Slope 2 from approximately 10% to 50%, with an intermediate transition to 40%, while lowering the optimal utilization rate from 92% to 85%, in order to raise the interest rate cap and attract liquidity back, allowing the pool to restore clearing via price mechanisms. Additionally, the proposal recommends pausing or fixing the Slope 2 risk oracle during the abnormal period, with LlamaRisk and Aave Labs implementing temporary parameters first, and completing governance confirmation within 5 to 7 days. (Source: MLion)
AAVE13.39%
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Vanchen
· 5h ago
Can it break 100 today?
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