Gordon Liao: Proposal to Adjust Aave V3 USDC Interest Rate Parameters to Address High Utilization Rates

Circle Chief Economist Gordon Liao proposed at the Aave Governance Forum to urgently adjust the USDC interest rate parameters in the Aave V3 Ethereum main pool to address the issue of the utilization rate remaining at 99.87% for four consecutive days after the KelpDAO attack. The supply and borrowing scale of the fund pool are both 1.89 billion US dollars, with available liquidity of less than 3 million US dollars, and the borrowing interest rate is maintained at about 14%. In the past 24 hours, the size of the fund pool has shrunk by approximately $60 million. Liao suggests increasing the Slope 2 parameter in the USDC deposit rate curve from approximately 10% to 40%, and confirming the increase to 50% through governance voting within 5 to 7 days. The optimal utilization rate will be reduced from 92% to 87%, and ultimately to 85%. Under the new parameters, when the utilization rate reaches 100%, the maximum deposit interest rate for USDC will increase from approximately 12.6 to 48.2.