As we’ve recommended before, from a liquidity and market risk perspective, we support enabling USDT as collateral. Regarding the specific parameter recommendations, we support the proposal to list with the same parameters as USDC. Please note that there is a pending Chaos proposal to increase the LT and LTV of USDC on V3 Ethereum, which has passed Snapshot and awaiting AIP.
However, it’s important to note that the primary concern, as mentioned in the various governance discussions in the past, is the counterparty risk. Ultimately, the community must determine its stance on this issue and decide whether to enable USDT as collateral and outside of Isolation mode. If the community is supportive of this, the discussion should be expanded to enabling USDT across the other Aave deployments too.