[ARFC-Addendum] Update Slope1 of USDS on Aave v3
Author: ACI (Aave Chan Initiative)
Date: 2024-10-22
Summary
Proposal to update the USDS Slope1 to .75%
Motivation
While the latest AIP for USDS borrow rate has intended effect of disincentivizing USDS borrows and looping on Main instance, the current slope1 is too aggressive compared to other stables. A new AIP to address unnecessarily high borrow rate for USDS has been created with an updated slope1 at 0.75%.
Specification
USDS Slope1 will be adjusted as follows
- New Slope1 .75%
All other parameters remain unchanged.
Next Steps
- Implement the proposed parameter change via a Direct-to-AIP process.
- Monitor borrow rate and use authorized discretion for further rate adjustments.
Disclaimer
This proposal is made independently by the ACI.
Copyright
Copyright and related rights waived via CC0.