Aave raises USDT borrowing costs sooner as liquidity tightens

Aave lowered the USDT rate kink on its Ethereum V3 Core market from 94% to 92%, so variable borrow rates now climb earlier as utilization rises Borrowing USDT on Aave just got pricier, at least when the pool starts running dry. On October 21, 2026, Aave lowered the utilization point where its USDT interest rates shift into a higher gear on the Ethereum V3 Core market. The threshold, known as the “kink,” moved from 94% to 92%. Two percentage points sounds tiny. For a borrower sitting in a pool that is nearly tapped out, it changes the math considerably.

Also reported by The Defiant.

Source: Crypto Briefing