Borrowing kink lowered to 92%, Aave adjusts USDT interest rate parameters for Ethereum Core market

Odaily: Aave has executed an adjustment to the USDT borrowing interest rate parameters in the Ethereum Core market at block height 26,241,799, lowering the rate kink from 94% utilization to 92%, so that borrowing costs rise earlier when liquidity in the pool tightens. The new parameters are: optimal utilization 92%, base rate 0, slope 1 at 4.5%, slope 2 at 10%; the kink rate is 4.5% APR, and at 100% utilization it is 14.5% APR. At 94% utilization, the old curve's borrowing rate is 4.5% APR, while the new curve's is 7% APR, 2.5 percentage points higher. LlamaRisk recommended the adjustment on October 20; based on a supply of 2.8922 billion USDT, 92% utilization leaves about 57.84 million USDT more in unborrowed buffer than 94%. This buffer does not represent actual cash, and withdrawals still depend on available unborrowed liquidity. A snapshot on October 23 showed that actual cash in the pool was about 391.4 million USDT, the variable borrowing APR was about 4.23%, and the supply liquidity APR was 3.29%.