Aave borrowing-rate restoration proposal

What happened

LlamaRisk proposed restoring Aave borrowing-rate slopes on October 31 after temporary reductions following the Binance incident.

What changed

LlamaRisk proposed raising Ethereum Core USDC Slope2 from 5.50% to 10.00%. Borrowers above optimal utilization would pay higher rates.

What did not change

LlamaRisk proposed keeping base rates, Slope1 and optimal utilization unchanged.

Confirmed

• LlamaRisk reported that the affected reserves again accepted deposits and borrowing on October 31.
• LlamaRisk proposed implementing the changes through Risk Stewards, with the Horizon Operations multisig handling Horizon.

Still open

• The proposal does not establish execution of the rate changes.
• LlamaRisk did not demonstrate withdrawals at the sizes clients might require.

What it means for an advisor

• Ketju should review borrowing-cost assumptions and available withdrawal liquidity in the Aave memos before treating the proposed rates as operative.