Gauntlet Analysis
From a market risk perspective, Gauntlet supports the updated plan.
Current utilization is ~56%, so this would send the variable rate to ~100% immediately. BUSD is not collateral on Aave v2, nor can any additional supply or borrows be made. 90% of the total borrow amount is done by 100 users, and the top 5 borrowers account for almost 30% of the total borrows.
The top borrowers are usually fairly active (elastic), suggesting that the increase in borrow rate could be effective. If BUSD debt does not decrease meaningfully following this proposal, then the community may consider toggling rates higher.