Stablecoins Interest Rate Curve Update
Stablecoins Interest Rate Curve Update
Author
Aave Chan Initiative
Creator
0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922
Simple Summary
In light of recent market changes, Chaos Labs recommends setting the target borrow rate for most stablecoins to 6.50%. These changes would be implemented via the direct-to-AIP process.
Motivation
The utilization for stablecoins across Aave has resumed falling after a brief improvement following the last IR curve adjustment, calling for a further reduction in target rates to better align with the market-priced interest rate.
A closer look at the largest stablecoin markets indicates that borrow rates have stabilized between 6% and 8%.
As a result, we recommend setting the target rate for all stablecoins to 6.5%;
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 | 8.50% | 6.50% |
| Aave V3 | Ethereum Core | DAI | 8.50% | 6.50% |
| Aave V3 | Ethereum Core | USDT | 8.50% | 6.50% |
| Aave V3 | Ethereum Core | LUSD | 8.50% | 6.50% |
| Aave V3 | Ethereum Core | FRAX | 8.50% | 6.50% |
| Aave V3 | Ethereum Core | crvUSD | 8.50% | 6.50% |
| Aave V3 | Ethereum Core | USDe | 8.50% | 6.50% |
| Aave V3 | Ethereum Prime | USDC | 8.50% | 6.50% |
| Aave V3 | Ethereum EtherFi | USDC | 8.50% | 6.50% |
| Aave V3 | Ethereum EtherFi | FRAX | 8.50% | 6.50% |
| Aave V3 | Arbitrum | DAI | 9% | 6.50% |
| Aave V3 | Arbitrum | USDT | 9% | 6.50% |
| Aave V3 | Arbitrum | LUSD | 9% | 6.50% |
| Aave V3 | Arbitrum | USDC | 9% | 6.50% |
| Aave V3 | Arbitrum | FRAX | 9% | 6.50% |
| Aave V3 | Optimism | DAI | 9% | 6.50% |
| Aave V3 | Optimism | USDT | 9% | 6.50% |
| Aave V3 | Optimism | sUSD | 9% | 6.50% |
| Aave V3 | Optimism | LUSD | 9% | 6.50% |
| Aave V3 | Optimism | USDC | 9% | 6.50% |
| Aave V3 | Base | USDC | 9% | 6.50% |
| Aave V3 | Metis | m.DAI | 9.50% | 6.50% |
| Aave V3 | Metis | m.USDC | 9.50% | 6.50% |
| Aave V3 | Metis | m.USDT | 9.50% | 6.50% |
| Aave V3 | Avalanche | DAI.e | 8.50% | 6.50% |
| Aave V3 | Avalanche | USDC | 8.50% | 6.50% |
| Aave V3 | Avalanche | USDt | 8.50% | 6.50% |
| Aave V3 | Avalanche | FRAX | 8.50% | 6.50% |
| Aave V3 | Avalanche | AUSD | 8.50% | 6.50% |
| Aave V3 | Gnosis | WXDAI | 9% | 6.50% |
| Aave V3 | Gnosis | EURe | 9% | 6.50% |
| Aave V3 | Gnosis | USDC.e | 9% | 6.50% |
| Aave V3 | BNB | USDC | 8.50% | 6.50% |
| Aave V3 | BNB | USDT | 8.50% | 6.50% |
| Aave V3 | BNB | FDUSD | 8.50% | 6.50% |
| Aave V3 | Scroll | USDC | 8.50% | 6.50% |
| Aave V3 | ZkSync | USDC | 8.50% | 6.50% |
| Aave V3 | ZkSync | USDT | 8.50% | 6.50% |
References
- Implementation: AaveV3Ethereum, AaveV3EthereumLido, AaveV3EthereumEtherFi, AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum, AaveV3Metis, AaveV3Base, AaveV3Gnosis, AaveV3Scroll, AaveV3BNB, AaveV3ZkSync
- Tests: AaveV3Ethereum, AaveV3EthereumLido, AaveV3EthereumEtherFi, AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum, AaveV3Metis, AaveV3Base, AaveV3Gnosis, AaveV3Scroll, AaveV3BNB, AaveV3ZkSync
- Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.