LlamaRisk's Aave Risk Stewards have proposed raising USDe's base rate by 1% while cutting Slope1 by 1% across Core, Plasma, Monad, Mantle, and Avalanche deployments, reflecting high utilization and shifting borrow demand. USDC supply and borrow caps on Core are being raised given 92-95% cap utilization, and GHO caps are being adjusted on Monad, while syrupUSDC, syrupUSDT, and USDe supply caps are being trimmed on select deployments.
For Armada's crypto-collateral desk, Aave V3 serves as a key DeFi rate benchmark for stablecoin lending and borrowing. The USDe rate curve restructuring and near-ceiling USDC utilization signal tightening DeFi liquidity conditions that could pressure Armada's own rate-setting if counterparties use Aave as a competing venue. The team should update its DeFi benchmark monitoring and revisit whether current crypto-desk rates remain competitive and appropriately risk-adjusted.