[ARFC] Proposal to Remove USDS from sUSDe Liquid E-Mode in Aave Prime Instance
Vote Result: YES
Rationale
Since the inclusion of USDS in the sUSDe Liquid e-mode has led to the liquidity being primarily used for looping strategies, which has caused interest rate spikes and elevated borrow rates for users using ETH as collateral, it makes sense to remove USDS from the e-mode. It is also a good idea to keep USDS listed within the e-mode and set it as non-borrowable to prevent impact on existing user positions. We’re also glad to see the analysis pertaining to the increased LB from 3 to 4%.
Therefore, we will vote YES in favour of this proposal.