# Aave Lowers Its USDT Utilization Threshold to 92%, Raising Borrowing Costs Earlier to Protect Withdrawals

At 94% utilization the new curve charges about 7% a year instead of 4.5%, a change that pressures leveraged stablecoin loops such as those built on Ethena's USDe.

- Published: 2026-10-24T05:47:39.510Z
- Canonical: https://polylog.news/crypto/2026-10-24/aave-lowers-its-usdt-utilization-threshold-to-92-raising-bor
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [CryptoSlate](https://cryptoslate.com/aave-changes-usdt-borrowing-rules-and-loan-costs-suddenly-jump/), [KuCoin News](https://www.kucoin.com/news/flash/aave-lowers-usdt-utilization-threshold-borrowing-rates-rise-sharply), [CryptoSlate (Ethena loops)](https://cryptoslate.com/rising-aave-borrow-rates-threaten-to-flip-ethenas-usde-yield-loops-into-negative-carry/)

Aave, the largest lending protocol on Ethereum, implemented a lower USDT rate threshold on Oct. 21. The utilization level at which borrowing costs rise steeply fell from 94% to 92% of the pool. Utilization is the share of deposited liquidit…

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