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At 94% utilization, the variable borrow rate now reaches 7% APR instead of 4.5% under the old curve.
Wed 28 Oct 2026 · 09:36 EDT · 1 min read
In DeFi
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Aave lowered the utilization point at which USDT borrowing costs accelerate on its Ethereum V3 Core market, moving the rate “kink” from 94% to 92%, CryptoSlate reported. The change was executed on Oct. 21 following a LlamaRisk recommendation dated Oct. 20.
The rest of the two-slope model is unchanged: a 0% base rate, a 4.5% first slope and a 10% second slope, for a maximum of 14.5% at full utilization. At 94% utilization, the borrow rate would now be 7% APR, compared with 4.5% under the old curve.
Change frees up liquidity buffer
Utilization stood at about 86.45% on Oct. 23, with a variable borrow rate near 4.23%. Moving the kink to 92% keeps about 57.8 million more USDT unborrowed at the threshold, based on LlamaRisk’s supply figures. Existing loans keep their accrued interest; the new rate applies to how balances grow from now on.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.