Aave V3 Risk Stewards, acting on LlamaRisk recommendations, approved a package of parameter changes including raising the USDe base borrowing rate to 6% and cutting its Slope1 by 1% across Core, Plasma, Monad, Mantle, and Avalanche instances. Separately, the PT-USDG-29OCT2026 supply cap on X Layer was doubled to 140 million after reaching 93.4% utilization, with top suppliers carrying a median health factor of just 1.03, indicating elevated liquidation proximity.
For Armada's crypto repo desk, Aave V3 rate parameters serve as a real-time benchmark for stablecoin-adjacent collateral borrowing costs. A 6% USDe base rate anchors counterparty expectations for similar yield-bearing collateral, and the thin 1.03 health factor on PT-USDG positions signals systemic fragility in that collateral pool that could spill into broader stablecoin repo liquidity if redemption pressure materializes.