Circle initiated a proposal on the Aave forum to raise the maximum interest rate for USDC deposits to 48.2%.

Circle's Chief Economist, Gordon Liao, initiated a proposal at the Aave governance forum to urgently adjust the USDC interest rate parameters in the Aave V3 Ethereum main pool to address the pool's utilization rate, which has remained at an extremely high level of 99.87% for four consecutive days following the KelpDAO attack. Liao stated that Aave's current interest rate mechanism has failed to effectively "clear" the market. The pool currently has a supply of $1.89 billion and a borrowing amount of $1.89 billion, leaving less than $3 million in available liquidity. The borrowing rate remains at the upper limit after the inflection point (approximately 14%), and the pool size has shrunk by approximately $60 million in the past 24 hours—due to repayment funds being used to meet queued withdrawal requests. Therefore, the Slope 2 parameter in the USDC deposit rate curve should be immediately increased from approximately 10% to 40% through the Risk Steward mechanism, and the target should be further increased to 50% through a governance vote within 5 to 7 days. Meanwhile, the optimal utilization rate will be reduced from 92% to 87% during the transition phase, and further reduced to 85% after final confirmation. According to Liao's proposal, under the new parameter settings, when the utilization rate reaches 100%, the maximum deposit rate for USDC will increase from approximately 12.6% to 48.2%.