Circle Economist Urges Aave V3 Interest Rate Hike Amid USDC Liquidity Drop

Circle's chief economist, Gordon Liao, has advocated for a substantial increase in interest rates for Aave V3 following a $60 million decline in USDC liquidity within the Aave V3 Ethereum core pool over the past 24 hours. According to NS3.AI, Liao noted that the supply has diminished as redemptions have matched withdrawal requests. He suggested employing emergency powers to address the situation before the governance process concludes any adjustments.