Aave raised USDT borrowing costs on the Ethereum pool by having it enter its steeper rate tier at 92% utilization

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From the articleAave Lowers USDT Utilization Threshold, Borrowing Rates Rise Sharply | KuCoinAlso in Aave changes USDT borrowing rules and loan costs suddenly jump, Aave Raises USDT Borrowing Costs at High Utilization

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Aave Lowers USDT Utilization Threshold, Borrowing Rates Rise Sharply | KuCoin

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Aave changes USDT borrowing rules and loan costs suddenly jump

Aave lowered the optimal utilization threshold for USDT borrowing on its Ethereum Core market from 94% to 92%, so borrow rates rise sharply sooner. This models about 57.8 million USDT more unborrowed liquidity, though suppliers' withdrawals still depend on available cash.

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Aave Raises USDT Borrowing Costs at High Utilization

Aave's Ethereum USDT pool now enters its steeper interest-rate tier at 92% utilization, giving borrowers an earlier incentive to leave liquidity available for withdrawals.