Aave tightens USDT borrowing rules as loan costs jump

TradingGain Newsroom·5d ago·23 Oct 2026, 21:40 UTC

Aave has changed its rules for borrowing USDT, and loan costs have risen suddenly. The changes rest on a fixed-supply model from October 20 and a 92% threshold, which add no cash or guaranteed exit for users. For traders, borrowing USDT on Aave may now be more expensive and less certain.

Why it matters

• Loan costs for borrowing USDT on Aave have jumped suddenly after the rule changes.
• The new 92% threshold does not add cash or a guaranteed exit for users.
• The cushion relies on a fixed-supply model dated October 20.

What to watch next

Watch whether USDT borrowing costs on Aave stay high and how users respond to the 92% threshold.