LlamaRisk, acting as Aave V3 Risk Stewards, recommended increasing the USDe base borrow rate by 100 bps across all five V3 deployments carrying USDe, continuing a trajectory toward a 5.25% base rate aligned with Ethena's native staking yield. Simultaneously, slope1 for non-USDe stablecoins rises 20 bps. On Core and Avalanche deployments, the USDe base increase is partially offset by a 100 bps slope1 reduction to prevent borrow APRs from overshooting the target.
Armada's crypto-repo desk uses DeFi lending rates as external benchmarks when pricing stablecoin-adjacent collateral trades. A 100 bps base rate increase on USDe tightens the spread between on-chain and off-chain financing costs, which can compress margins or attract new counterparties seeking repo as a cheaper alternative. The broader stablecoin slope1 move also signals rising utilization across Aave markets, warranting a review of LTV assumptions on any stablecoin collateral positions.