Aave Lowers USDT Borrowing Rate Spike Threshold to 92% Utilization
- —Threshold for sharp USDT rate increases cut to 92% from 94%
- —Borrow APR at 94% utilization rises to 7% from 4.5%
- —LlamaRisk estimated an extra 57.8M USDT buffer at the optimal point
- —Supply caps for USDe, LINK and rETH were also reduced
Why it matters: The adjustment protects withdrawal liquidity for suppliers, reducing the risk of a frozen pool during high utilization.
Source: Cryptonews.net