📰 【Circle economists propose setting a 50% interest rate cap to address Aave's USDC liquidity crisis】



Some users have raised objections on Aave's governance forum, worried that these changes could worsen liquidations on the lending protocol.

Here comes another academic economist, trying to cure Aave's USDC liquidity issues with a 50% interest rate ceiling. Naive. Once the market panics, the interest rate cap becomes a death knell—do these people think on-chain liquidations won't accelerate because of it? DeFi isn't run by arbitrary administrative orders. 👎👎👎👎👎
AAVE2.13%
USDC0.01%
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