Decrease Slope1 Parameter for Stablecoins on Aave V3
Decrease Slope1 Parameter for Stablecoins on Aave V3
Author
Aave Chan Initiative
Creator
0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922
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% |
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.