ethereum · · 2 outlets
92% utilization triggers Aave's steeper USDT borrowing cost tier
Borrowers are given an earlier encouragement to maintain liquidity for withdrawals because the Ethereum pool has reached a steeper rate tier at 92% utilization, according to recent news.
The Ethereum pool now enters its steeper rate tier at 92% utilization, giving borrowers an earlier incentive to leave liquidity available for withdrawals.
Aave's Ethereum USDT curve will now increase borrowing costs sooner as liquidity becomes more constrained. The accrued interest on any existing debt will remain as is; however, the new rate will determine how the balance continues to increase from that point forward.
Reported by thedefiant.io and thedefiant.io.
