# Crazy old loan APY on V2 that \*4 the debt. Need help with situation **URL:** \ **Category:** Other\ **Created:** [December 27, 2023, 3:55am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942 "2023-12-27T03:55:03Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![bluandyellow](https://avatars.discourse-cdn.com/v4/letter/b/eb9ed0/32.png) [@bluandyellow](https://governance.aave.com/u/bluandyellow)\ **Post date:** [December 27, 2023, 3:55am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/1 "2023-12-27T03:55:03Z")
I supply dai on v2 ethereum, an old supplier. I also have a debt in tusd on the same version. Recently, i connected and noticed that the debt more than doubled with an on going apy of over 4000%. The sum is quite big. What should i do in this situation? Wait until the apy changes? Will it lower the sum i owe? Is that an attack on older supply? Via crazy lending on low volume pools? ---
**Author:** ![VigilantBag](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/vigilantbag/32/4658_2.png) [@VigilantBag](https://governance.aave.com/u/VigilantBag)\ **Post date:** [December 27, 2023, 4:05am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/2 "2023-12-27T04:05:15Z")
TUSD is planned to be off-boarded so suppliers are removing liquidity, thereby raising rates. You should probably get out of that position. As for the loan payback rate, every block the new debt is calculated with that block’s interest rate (some fraction of the APR) so you should move out as soon as possible. ---
**Author:** ![bluandyellow](https://avatars.discourse-cdn.com/v4/letter/b/eb9ed0/32.png) [@bluandyellow](https://governance.aave.com/u/bluandyellow)\ **Post date:** [December 27, 2023, 4:23am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/3 "2023-12-27T04:23:42Z")
Thanks. Thing is we are talking almost 5 figure debt from 15k debt. Its kinda a lot ---
**Author:** ![VigilantBag](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/vigilantbag/32/4658_2.png) [@VigilantBag](https://governance.aave.com/u/VigilantBag)\ **Post date:** [December 27, 2023, 4:28am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/4 "2023-12-27T04:28:31Z")
Unfortunately, that debt is NOT going down. This is a natural protocol event. ---
**Author:** ![bluandyellow](https://avatars.discourse-cdn.com/v4/letter/b/eb9ed0/32.png) [@bluandyellow](https://governance.aave.com/u/bluandyellow)\ **Post date:** [December 27, 2023, 4:31am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/5 "2023-12-27T04:31:11Z")
I understand. But doesn’t the debt amount lowers if the apy lowers? Check out this chart (borrow info): > **[Aave - Open Source Liquidity Protocol](https://app.aave.com/reserve-overview/?underlyingAsset=0x0000000000085d4780b73119b644ae5ecd22b376&marketName=proto_mainnet)** > > Aave is an Open Source Protocol to create Non-Custodial Liquidity Markets to earn interest on supplying and borrowing assets with a variable or stable interest rate. The protocol is designed for easy integration into your products and services. It seems the rate jumps from 3 to 4000% per every few days. This seems fishy. Also, the money is kinda ll i got, so suddenly understanding i owe 90k and not 15k, is a bit of a shock PS. Also found this. [Aave - Freeze TUSD Reserve on Aave V2 Ethereum](https://governance-v2.aave.com/governance/proposal/253/) Meaning how can apy increase if there is no new deposits or withdraws? ---
**Author:** ![VigilantBag](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/vigilantbag/32/4658_2.png) [@VigilantBag](https://governance.aave.com/u/VigilantBag)\ **Post date:** [December 27, 2023, 4:44am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/6 "2023-12-27T04:44:13Z")
The amount owed does not lower. It is the addition of all the calculations done since the creation. The DAO decided to set the borrow APY significantly higher than the supply in an effort to encourage people to get off the asset. If you look at the interest rate model all the way at the bottom, it practically spikes to the hundreds after 1% utilization. Due to the low liquidity, even the smallest withdrawal could peak it. The 4k is for sure confusing as it indicates an above 100% utilization… Perhaps there are some weird contract code quirks similar to Ampleforth’s AMPL. I got to go, hopefully you can get some closure on this. ---
**Author:** ![bluandyellow](https://avatars.discourse-cdn.com/v4/letter/b/eb9ed0/32.png) [@bluandyellow](https://governance.aave.com/u/bluandyellow)\ **Post date:** [December 27, 2023, 4:45am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/7 "2023-12-27T04:45:23Z")
thanks. but [Aave - Freeze TUSD Reserve on Aave V2 Ethereum](https://governance-v2.aave.com/governance/proposal/253/) this doesn’t make sense. how can apy be so high if its frozen? also the daily jumps from 1 to 4000 dont make sense ---
**Author:** ![VigilantBag](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/vigilantbag/32/4658_2.png) [@VigilantBag](https://governance.aave.com/u/VigilantBag)\ **Post date:** [December 27, 2023, 4:48am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/8 "2023-12-27T04:48:34Z")
Yeah, I have no clue as to why the APY is fluctuating that badly despite being frozen. That part is NOT natural as far as I know. ---
**Author:** ![bluandyellow](https://avatars.discourse-cdn.com/v4/letter/b/eb9ed0/32.png) [@bluandyellow](https://governance.aave.com/u/bluandyellow)\ **Post date:** [December 27, 2023, 4:49am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/9 "2023-12-27T04:49:40Z")
thanks again. any further help from anyone else is appreciated ---
**Author:** ![EzR3aL](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/ezr3al/32/10721_2.png) [@EzR3aL](https://governance.aave.com/u/EzR3aL)\ **Post date:** [December 27, 2023, 7:48am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/10 "2023-12-27T07:48:46Z")
Everything was communicated and there is also an info button when checking TUSD on V2 which refers to this thread: [[ARFC] TUSD Offboarding Plan - Governance - Aave](https://governance.aave.com/t/arfc-tusd-offboarding-plan/14008) Im closing this thread now, and i highly recommend migrating your position to V3 or repaying your debt. ---
**Author:** ![EzR3aL](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/ezr3al/32/10721_2.png) [@EzR3aL](https://governance.aave.com/u/EzR3aL)\ **Post date:** [December 27, 2023, 7:48am UTC](https://governance.aave.com/t/crazy-old-loan-apy-on-v2-that-4-the-debt-need-help-with-situation/15942/11 "2023-12-27T07:48:50Z")