Wu Blockchain has learned that Circle's Chief Economist, Gordon Liao, submitted an ARFC proposal stating that the Aave v3 Ethereum mainnet USDC pool has been near 100% utilization for about 4 consecutive days. Borrowing rates have remained at the ~14% cap but have failed to clear the market, with liquidity remaining tight and both lending and borrowing volumes shrinking simultaneously. This is primarily driven by approximately $300 million in borrowing demand following the rsETH incident, with borrowers showing insensitivity to interest rates. The proposal suggests increasing Slope 2 from ~10% to 50% (with an intermediate step at 40%) and lowering the optimal utilization rate from 92% to 85% to raise the interest rate cap and attract liquidity back into the pool. This would allow the pool to restore market clearing through price mechanisms. Additionally, it recommends pausing or fixing the Slope 2 risk oracle during this abnormal period, with LlamaRisk and Aave Labs temporarily implementing the parameters and completing governance confirmation within 5 to 7 days. https://(wublock123.com)/news/aave-usdc-pool-nears-capacity-proposal-hikes-rates-59981