As we’ve commented in previous discussions, we support listing USDT outside of E-mode. As the community has been positive towards enabling USDT as collateral and voted to enable this on V3 Ethereum, the same could be considered across all Aave deployments.
Regarding the specific parameter recommendations, we recommend initially maintaining the current LT, LTV, and LB configurations. We could consider optimizations after assessing usage subsequent to the implementation of this proposal, leveraging our simulation platform.
In addition, given the current supply and borrow and the elimination of the debt ceiling, we recommend reducing the caps to 100M and 80M, respectively. These caps could be easily adjusted by the Risk Steward given increasing demand.
Recommendations:
| Parameters | USDT (current) | USDT (proposed) |
|---|---|---|
| Supply Cap | 200M | 100M |
| Borrow Cap | 140M | 80M |
| LTV | 75% | No Change |
| LT | 81% | No Change |
| LB | 5% | No Change |
| Isolation Mode | Yes | No |