Stablecoin IR Curves Updates
Stablecoin IR Curves Updates
Author
Chaos Labs
Creator
0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922
Simple Summary
A proposal to increase stablecoin Interest Rate parameters across all Aave deployments.
Motivation
Following the implementation of AIP-375 to increase stablecoin borrow rates across Aave V2 and V3 deployments, we continue to observe volatility in borrow rates across Aave deployments. As we highlighted in the recent proposal, we recommend a more aggressive increase of the Slope1 parameter to stabilize borrows under the UOptimal point.
Adjust Slope1 of stablecoins to 6%
The analysis indicates a necessity for further refinement of stablecoin interest rates, to achieve a more predictable and stable borrowing rate with an equilibrium utilization under the UOptimal point. Therefore, we propose increasing Slope1 to 6% for stablecoins across all Aave deployments, in this iteration. Following this increase, we will continue monitoring the usage and equilibrium rate and make additional recommendations as necessary.
Specification
| Market | Asset | Current Slope1 | Rec Slope1 |
|---|---|---|---|
| Ethereum V2 | USDC | 5% | 6% |
| Ethereum V2 | USDT | 5% | 6% |
| Ethereum V2 | DAI | 5% | 6% |
| Ethereum V2 | FRAX | 5% | 6% |
| Ethereum V2 | sUSD | 5% | 6% |
| Ethereum V2 | GUSD | 5% | 6% |
| Ethereum V2 | LUSD | 5% | 6% |
| Ethereum V2 | USDP | 5% | 6% |
| Ethereum V3 | USDC | 5% | 6% |
| Ethereum V3 | USDT | 5% | 6% |
| Ethereum V3 | DAI | 5% | 6% |
| Ethereum V3 | FRAX | 5% | 6% |
| Ethereum V3 | LUSD | 5% | 6% |
| Avalanche V2 | USDC | 5% | 6% |
| Avalanche V2 | USDT | 5% | 6% |
| Avalanche V2 | DAI | 5% | 6% |
| Avalanche V3 | USDC | 5% | 6% |
| Avalanche V3 | USDT | 5% | 6% |
| Avalanche V3 | DAI | 5% | 6% |
| Avalanche V3 | MAI | 5% | 6% |
| Avalanche V3 | FRAX | 5% | 6% |
| Polygon V2 | USDC | 5% | 6% |
| Polygon V2 | USDT | 5% | 6% |
| Polygon V2 | DAI | 5% | 6% |
| Polygon V3 | USDC.e | 7% | No Change |
| Polygon V3 | USDC | 5% | 6% |
| Polygon V3 | USDT | 5% | 6% |
| Polygon V3 | DAI | 5% | 6% |
| Polygon V3 | MAI | 5% | 6% |
| Optimism V3 | USDC.e | 7% | No Change |
| Optimism V3 | USDC | 5% | 6% |
| Optimism V3 | USDT | 5% | 6% |
| Optimism V3 | DAI | 5% | 6% |
| Optimism V3 | sUSD | 5% | 6% |
| Optimism V3 | LUSD | 5% | 6% |
| Optimism V3 | MAI | 5% | 6% |
| Arbitrum V3 | USDC | 5% | 6% |
| Arbitrum V3 | USDC.e | 7% | No Change |
| Arbitrum V3 | USDT | 5% | 6% |
| Arbitrum V3 | DAI | 5% | 6% |
| Arbitrum V3 | LUSD | 5% | 6% |
| Arbitrum V3 | FRAX | 5% | 6% |
| Arbitrum V3 | MAI | 5% | 6% |
| Base V3 | USDC | 5% | 6% |
| Base V3 | USDbC | 7% | No Change |
| Metis V3 | USDC | 5% | 6% |
| Metis V3 | USDT | 5% | 6% |
| Gnosis V3 | USDC | 5% | 6% |
| Gnosis V3 | xDAI | 5% | 6% |
References
- Implementation: AaveV2Ethereum, AaveV2Polygon, AaveV2Avalanche, AaveV3Ethereum, AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum, AaveV3Metis, AaveV3Base, AaveV3Gnosis
- Tests: AaveV2Ethereum, AaveV2Polygon, AaveV2Avalanche, AaveV3Ethereum, AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum, AaveV3Metis, AaveV3Base, AaveV3Gnosis
- Snapshot
- Discussion
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this ARFC.
Copyright
Copyright and related rights waived via CC0.