Aave's USDT borrow rate heads to 4.19 percent: what it means for lenders

Lenders and borrowers in Aave's USDT market will soon see a different rate. On October 20 the protocol's Risk Stewards recommended cutting the optimal usage ratio for USDT on Aave V3 Core from 94.00 to 92.00 percent. At the current level of usage that would lift the variable borrow rate from 4.10 to 4.19 percent a year and the supply rate from 3.16 to 3.22 percent. Several other caps are coming down at the same time. AAVE itself trades 13.8 percent below its weekly high.