Aave cuts USDT kink to 92%, making borrowing costs jump sooner
- —Kink cut from 94% to 92% in block 26,241,799 on Oct. 21
- —At 94% utilization the borrow rate rises to 7% APR from 4.5%
- —LlamaRisk model: liquidity buffer at the threshold grows by $57.8 million
- —On Oct. 23 utilization was 86.45% with a 4.23% borrow APR
Why it matters: Earlier rate pressure pushes borrowers to repay USDT sooner, reducing the risk of a liquidity crunch for withdrawals.
Source: CryptoSlate