Aave's Risk Stewards, acting on LlamaRisk recommendations, have raised the USDe base rate from 6.30% to 6.60% across Aave V3 Core, Avalanche, Mantle, Monad, and Plasma instances, and expanded the JAAA supply cap on Aave V3 Horizon from $50 million to $60 million. USDT optimal utilization was also lifted from 93% to 94% on Core. Several assets across chains saw supply and borrow cap reductions.
For Armada's crypto-repo desk, the USDe rate increase sets a higher on-chain benchmark for synthetic dollar borrowing costs, relevant when pricing crypto-repo transactions where counterparties compare Armada's terms against Aave borrow rates. The JAAA cap expansion signals increasing institutional demand for tokenized CLO collateral on permissioned DeFi, a collateral category adjacent to Armada's tokenized T-bill framework. Both changes should feed into Armada's next collateral pricing review.