# \[ARFC\] Reduction of Reserve Factor and Slope2 for Stablecoin Markets on Aave V2

**URL:** <https://governance.aave.com/t/arfc-reduction-of-reserve-factor-and-slope2-for-stablecoin-markets-on-aave-v2/20041>\
**Category:** Governance\
**Created:** [December 3, 2024, 1:21pm UTC](https://governance.aave.com/t/arfc-reduction-of-reserve-factor-and-slope2-for-stablecoin-markets-on-aave-v2/20041 "2024-12-03T13:21:55Z")\
**Posts on this page:** 1\
**Showing post:** 2

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**Author:** ![LlamaRisk](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/llamarisk/32/12865_2.png) [@LlamaRisk](https://governance.aave.com/u/LlamaRisk)\
**Post date:** [December 3, 2024, 1:38pm UTC](https://governance.aave.com/t/arfc-reduction-of-reserve-factor-and-slope2-for-stablecoin-markets-on-aave-v2/20041/2 "2024-12-03T13:38:17Z")

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We support this proposal. It strikes a good balance between maintaining a controlled V2 deprecation while addressing the current market inefficiencies caused by recent borrowing demand surges. Thank you, @ChaosLabs, for providing detailed analysis and analytics demonstrating how these changes are expected to improve rate alignment and market stability.

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_[View the full topic](https://governance.aave.com/t/arfc-reduction-of-reserve-factor-and-slope2-for-stablecoin-markets-on-aave-v2/20041)._