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executedEnds a year ago · Onchain

Decrease Slope1 Parameter for Stablecoins on Aave V3

Simple Summary

In light of recent market changes, Chaos Labs recommends setting the target borrow rate for all stablecoins to 9.50%. These changes will be implemented via the direct-to-AIP process.

Motivation

The utilization for stablecoins across Aave has continued to fall, calling for a further reduction in target rates to better align utilization. The chart below shows the average stablecoin utilization on Aave, weighted by the amount of total borrows of each asset.

Utilization across the largest markets remains relatively low; the same has held true on all deployments, with none registering an average weighted utilization above 80%.

As a result, we recommend setting the target rate for all stablecoins to 9.50%; bridged stablecoins on networks where native versions are available should be set to 10.50%. Please note that GHO, USDS, and pyUSD are managed separately and thus are not included in these recommendations.

Specification

Protocol	Instance	Asset	Current Slope1	Rec. Slope1
Aave V3	Ethereum Core	USDC	11.50%	9.50%
Aave V3	Ethereum Core	DAI	11.50%	9.50%
Aave V3	Ethereum Core	USDT	11.50%	9.50%
Aave V3	Ethereum Core	LUSD	11.50%	9.50%
Aave V3	Ethereum Core	FRAX	11.50%	9.50%
Aave V3	Ethereum Core	crvUSD	11.50%	9.50%
Aave V3	Ethereum Core	USDe	11.50%	9.50%
Aave V3	Ethereum Prime	USDC	11.50%	9.50%
Aave V3	Ethereum EtherFi	USDC	12.50%	9.50%
Aave V3	Ethereum EtherFi	FRAX	12.50%	9.50%
Aave V3	Arbitrum	DAI	11.50%	9.50%
Aave V3	Arbitrum	USDC.e	12.50%	10.50%
Aave V3	Arbitrum	USDT	11.50%	9.50%
Aave V3	Arbitrum	LUSD	11.50%	9.50%
Aave V3	Arbitrum	USDC	11.50%	9.50%
Aave V3	Arbitrum	FRAX	11.50%	9.50%
Aave V3	Optimism	DAI	11.50%	9.50%
Aave V3	Optimism	USDC.e	12.50%	10.50%
Aave V3	Optimism	USDT	11.50%	9.50%
Aave V3	Optimism	sUSD	11.50%	9.50%
Aave V3	Optimism	LUSD	11.50%	9.50%
Aave V3	Optimism	USDC	11.50%	9.50%
Aave V3	Polygon	DAI	11.50%	9.50%
Aave V3	Polygon	USDC.e	12.50%	10.50%
Aave V3	Polygon	USDT	11.50%	9.50%
Aave V3	Polygon	EURS	11.50%	9.50%
Aave V3	Polygon	USDC	11.50%	9.50%
Aave V3	Base	USDbC	12.50%	10.50%
Aave V3	Base	USDC	11.50%	9.50%
Aave V3	Metis	m.DAI	12.50%	9.50%
Aave V3	Metis	m.USDC	12.50%	9.50%
Aave V3	Metis	m.USDT	12.50%	9.50%
Aave V3	Avalanche	DAI.e	12.00%	9.50%
Aave V3	Avalanche	USDC	12.00%	9.50%
Aave V3	Avalanche	USDt	12.00%	9.50%
Aave V3	Avalanche	FRAX	12.00%	9.50%
Aave V3	Avalanche	AUSD	5.50%	9.50%
Aave V3	Gnosis	USD//C	13.00%	10.50%
Aave V3	Gnosis	WXDAI	11.50%	9.50%
Aave V3	Gnosis	EURe	11.50%	9.50%
Aave V3	Gnosis	USDC.e	12.00%	9.50%
Aave V3	BNB	USDC	11.50%	9.50%
Aave V3	BNB	USDT	11.50%	9.50%
Aave V3	BNB	FDUSD	11.50%	9.50%
Aave V3	Scroll	USDC	11.50%	9.50%
Aave V3	ZkSync	USDC	11.50%	9.50%
Aave V3	ZkSync	USDT	11.50%	9.50%