TechFlame reports that Circle Chief Economist Gordon Liao has submitted an Aave governance discussion proposal recommending adjustments to the USDC interest rate parameters in Aave v3’s Ethereum core market. This is in response to the sustained high utilization and liquidity stress following the KelpDAO rsETH incident. The proposal suggests initially raising “Slope 2” to 40%, with a target of 50%, while lowering the optimal utilization rate to attract more USDC deposits. Some Aave community members believe that higher borrowing costs could increase the liquidation risk for borrowers. Data shows that Aave’s current total value locked stands at approximately $15.3 billion.