Aave’s Ethereum USDT Rate Curve Raises Costs Earlier as Liquidity Tightens
Edited by Steinar Vigdel Kolnes, Editor, Oslo
Aave’s Ethereum USDT borrowing curve increases costs sooner as liquidity tightens, with rate changes affecting future interest on existing variable-rate loans.
Aave’s USDT borrowing curve on Ethereum now pushes borrowing costs higher sooner as available liquidity tightens, according to The Defiant.
For borrowers with an existing variable-rate USDT loan, a rate change affects how interest accumulates from that point forward. The loan is not locked to the borrowing rate in effect when it was opened.
Interest already accrued remains part of the outstanding debt. A new rate does not recalculate those past charges; it changes the pace at which the balance grows going forward.
Source: The Defiant
