Demand for USDC borrowing on Aave is pretty strong. On November 8, risk manager LlamaRisk posted on the governance forum that 99% of the USDC borrowing cap in Aave V3’s Core market has been used: out of a cap of 2.6 billion, 2.57 billion has been borrowed. They recommended raising it to 2.75 billion.
More interestingly, the USDe supply cap was just doubled to 550 million on the 6th, and it was filled within two days. The largest address accounts for about 61%, and this time the recommendation is to raise the cap to 750 million. Of the top 20 USDe suppliers, 18 are also borrowing, with a median health factor of just 1.03—they’re basically looping loans to capture the spread.
Raising the caps is good news for $AAVE ’s lending income, but with $ENA ’s position so concentrated and its margin so thin, I’d keep a closer eye on USDe’s peg.
Source: Aave Governance Forum
#AAVE #DeFi
More interestingly, the USDe supply cap was just doubled to 550 million on the 6th, and it was filled within two days. The largest address accounts for about 61%, and this time the recommendation is to raise the cap to 750 million. Of the top 20 USDe suppliers, 18 are also borrowing, with a median health factor of just 1.03—they’re basically looping loans to capture the spread.
Raising the caps is good news for $AAVE ’s lending income, but with $ENA ’s position so concentrated and its margin so thin, I’d keep a closer eye on USDe’s peg.
Source: Aave Governance Forum
#AAVE #DeFi