LlamaRisk Proposes Higher USDe Borrow Rates Across Five Aave V3 Markets

LlamaRisk has proposed raising the USDe base variable borrow rate from 5% to 6% across five Aave V3 markets. According to NS3.AI, the recommendation would also reduce Slope1 by one percentage point on every deployment. The modeled change would lift borrower APRs by 13 to 89 basis points at the proposal's captured utilization levels. Aavescan showed USDe borrow APRs above sUSDe's 4.72% supply APY, leaving simple borrow-and-stake loops with negative carry before incentives and other costs.