Summary
Gauntlet supports the proposed increase for slope1 from 5% to 6% for stablecoins across all Aave deployments.
High Utilization Rate
Stablecoin borrowing demand remains high and utilization has remained at Uopt after AIP-375. For USDC and USDT utilization rates on other markets, please find them on Gauntlet Risk Dashboard.
AAVE V3 Ethereum USDC
AAVE V3 Ethereum USDT
AAVE V3 Polygon USDC
AAVE V3 Polygon USDT
Comparison to Tradfi Rates
Comparison with Tradfi rates shows the current slope 1 for stablecoins remains less than the Federal Funds Rate of 5.33%.
Source: newyorkfed.org
Recommendations
We support increasing Slope1 to 6% for stablecoins across all Aave deployments.