AAVE V3 Proposes Expansion of ETH-Based USDT Supply and Borrowing Limits
CryptoNewsTerminal Staff08 Jun, 2024
AAVE V3 Proposes Expansion of ETH-Based USDT Supply and Borrowing Limits
Chaos Labs, a respected blockchain risk analysis firm, has submitted a proposal to the AAVE community. The proposal aims to increase both the supply and borrow limits for ETH-based USDT within AAVE V3. This move is expected to enhance the liquidity and utilization of USDT on the AAVE platform. If approved, the USDT supply limit will rise from $1.5 billion to $2 billion. Additionally, the borrowing limit will be increased from $1.4 billion to $1.9 billion. These adjustments are expected to cater to the growing demand for USDT borrowing and lending on AAVE. The proposal emphasizes the importance of maintaining a balance between risk management and market demand. Increasing the limits will allow users to access more USDT liquidity while ensuring the platform's financial stability. The AAVE community will now review and vote on the proposal, determining the future of ETH-based USDT on the platform.
