Over the last months the stablecoin supply across the instances has remained stable and has even continued to grow on selected chains. However, the borrow demand for stablecoins decreased following a reduction in price of the collateral assets such as Ethereum.
This drop in borrow demand caused an additional reduction in average Interest Rate since the original recommendation, hence we reduced the target Interest Rate for all stablecoins by an additional 1%, bringing the target IR for native stablecoins to 6.5%.
We updated the original recommendation to reflect these changes.