Aave's LlamaRisk Proposes Higher USDe Borrow Costs Amid AI Server Launch

Aave Proposes Higher USDe Borrow Costs as AI Server Goes Live

LlamaRisk, an AI-powered risk model, has proposed increasing the base variable borrow rate of USDe from 5% to 6% across five Aave V3 markets: Core, Plasma, Monad, Mantle, and Avalanche. The proposal also suggests reducing Slope1 by one percentage point in each market.

This change would affect approximately $323.8 million in USDe debt against $1.18 billion supplied, resulting in an increase of 13 to 89 basis points in modeled borrower APRs. However, the actual impact will depend on utilization levels, as a higher base rate increases costs while a lower Slope1 offsets part of that increase.

The proposal is subject to the Risk Steward process and would implement the changes if approved. At current utilization levels, Avalanche would see the smallest modeled increase at 13 basis points, while Mantle would absorb almost the full increase from the higher base rate.

Separately, Aave Labs has launched an official AI server for protocol data and transaction preparation. The server, which uses Aave Kit to apply the same calculations as its official interfaces, provides read tools that cover chains, markets, reserves, rates, caps, risk parameters, and historical APY data.