Aave lowered the USDT utilization threshold on its Ethereum V3 Core market from 94% to 92% on October 21, 2026, causing variable borrowing rates to rise sooner. Under its two-slope interest rate model, the annualized rate increases from 4.5% below the threshold to 14.5% at full utilization, with the second slope set at 10%. At 94% utilization, borrowing costs now reach approximately 7%, compared with 4.5% previously, while utilization had peaked at roughly 94.3% in late October. According to LlamaRisk, the change should create an additional withdrawal buffer of around 57.8 million USDT without imposing hard limits; interest already accrued remains unchanged.
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