Circle Economist Proposes 50% Rate Ceiling to Snap Aave's USDC Liquidity Crisis
Circle chief economist Gordon Liao proposed raising Aave's maximum USDC borrow rate from 14% to 50% and cutting optimal utilization to 85% after the $291 million KelpDAO exploit left USDC at 100% utilization for five days and drove $12 billion in withdrawals.
Entities mentioned
- Circle
- Aave
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