Aave's Risk Stewards, acting on LlamaRisk recommendations, approved a set of parameter changes on September 16: the GHO stablecoin base borrow rate rises from 3.00% to 3.25%, the USDT optimal utilization ratio drops from 94% to 93% in V3 Core, and the JAAA tokenized CLO supply cap on Aave V3 Horizon increases from $40M to $50M. These changes reflect on-chain liquidity conditions and position health data from the latest reserve review.
For Armada's crypto repo desk, the GHO rate move is a direct DeFi benchmark input: Armada uses Aave rates as a reference for pricing crypto-collateralized repo against on-chain alternatives available to hedge fund and market maker counterparties. A rising GHO rate narrows the arbitrage gap with Armada's repo pricing. The JAAA supply cap expansion on Horizon is also notable—growing institutional appetite for tokenized CLO collateral on-chain may eventually feed into Armada's eligible collateral discussions.