Aave Moves USDT Borrowing Rate Threshold to 92% Utilization
Edited by Steinar Vigdel Kolnes, Editor, Oslo
Aave’s Ethereum USDT pool now reaches its steeper borrowing-rate tier at 92% utilization, encouraging borrowers to preserve liquidity for withdrawals.
Aave has adjusted borrowing costs for USDT in its Ethereum pool, setting the threshold for its steeper interest-rate tier at 92% utilization, according to The Defiant.
The change means borrowing rates begin rising more sharply earlier as available USDT is increasingly borrowed. Higher costs give borrowers an earlier incentive to reduce demand for the pool’s liquidity.
The adjustment is intended to help keep USDT available for withdrawals when utilization is high. The source did not specify the previous threshold or the exact borrowing rates.
Source: The Defiant
