Circle economist proposes 40%–50% USDC rate on Aave after KelpDAO exploit

Circle chief economist Gordon Liao proposed lifting Aave’s stressed USDC rate curve toward 40%–50% after the $292 million KelpDAO rsETH exploit. Liao said Aave’s USDC market stayed at full utilization for four days, and he argued higher rates could pull in fresh deposits. Forum critics said the steeper curve could push about $70.1 million of debt closer to liquidation over 30 days.

USDC-0.01%
AAVE-3.21%
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