LlamaRisk, acting as Aave V3 Risk Stewards, recommended lowering the Slope 2 parameter for USDC on X Layer from 40% to 20%, aligning it with the USD₮0 interest rate model on the same deployment. Separately, supply caps for sDAI were cut from 20M to 5M and WXDAI from 4M to 1M, with WXDAI borrow caps slashed from 3.7M to 500K, reflecting reduced on-chain liquidity and position health concerns on Gnosis chain.
Armada's crypto repo desk uses DeFi protocol rate benchmarks to price collateralized lending against assets including stablecoins and tokenized instruments. The USDC Slope 2 reduction softens the rate spike at high utilization, compressing the upper bound of on-chain stablecoin borrow costs. The sDAI cap cuts also signal risk steward caution around yield-bearing stablecoin collateral, a category Armada may encounter as collateral from family office or market maker counterparties.