Circle's chief economist has proposed adjusting the Aave V3 USDC interest rate parameters to address high utilization rates.

On April 23, CoinFeed reported that Circle's Chief Economist, Gordon Liao, initiated a proposal on the Aave governance forum to urgently adjust the USDC interest rate parameter in the Aave V3 Ethereum main pool. This is to address the extremely high pool utilization rate of 99.87% for four consecutive days following the KelpDAO attack. Liao stated that the current interest rate mechanism has failed to effectively clear the market; the pool's supply and borrowing size are both $1.89 billion, with available liquidity less than $3 million. The pool size has shrunk by approximately $60 million in the past 24 hours. Liao suggested immediately increasing the Slope 2 parameter in the USDC deposit rate curve from approximately 10% to 40% through the Risk Steward mechanism, and further increasing it to 50% within 5 to 7 days through a governance vote.