Aave has implemented the "BUSD Delisting Plan Part Two" to incentivize inactive borrowers to exit

2023-06-12 14:35:03
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ChainCatcher news, according to the official governance page, the Aave community voted on-chain last Friday to approve the "BUSD Delisting Plan Part Two" proposal, which has been executed. This proposal involves modifying the risk parameters for BUSD and removing POL BUSD liquidity to create unsustainable positions for inactive vBUSD debt holders, incentivizing them to repay or reach the liquidation threshold.

Previously, Aave executed the first part of the BUSD delisting plan in March, which involved changing the interest rate strategy for BUSD reserves in the Aave V2 Ethereum pool and increasing the Reserve Factor, removing liquidity, and incentivizing active users to repay their debts and transfer their positions to other stablecoins. (Source link)

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