Aave V3 USDC Borrow Rate Spiked From 4.5% to 13.8% on Overnight Withdrawals
- —Daily USDC flow between Aave and Sky's PSM averaged about $290 million
- —About $134 million left Aave, returning a median 37 minutes later
- —USDC pool utilization rose from 94% to 99.6%, hitting 100% on six October days
- —Aave V3 USDC borrow rate spiked from 4.5% to 13.8%
Why it matters: Recurring overnight liquidity pulls distort rates in the largest USDC pool and raise borrowing costs for users.
Source: TokenPost