I think what we are seeing is an interesting experiment. Borrowers have high incentives to borrow in positive rebase territory (as we are seeing right now) and suppliers have higher incentive to dampen the exposure in negative rebase territory·
I think what is needed here is further tune the borrow rates and introduce some mechanism to balance borrow demand in negative rebase territory. I would love to hear the AMPL team opinion about it.
Side note, AMPL is currently very profitable for the aave protocol.