Gauntlet: There are abnormal borrowing behaviors of TUSD on Aave v2, with utilization rates reaching 98% multiple times

ChainCatcher news, the DeFi risk management firm Gauntlet has initiated a new proposal in the Aave community, suggesting to iteratively lower the LT, LTV, and/or freeze the TUSD supply on Aave v2 Ethereum to begin the delisting of TUSD. Gauntlet stated that over the past week, abnormal borrowing behavior of TUSD on Aave v2 has been observed, with utilization rates reaching 98% multiple times, remaining above 90% from June 9 to June 15, and dropping to 74% as of June 16.

Gauntlet expressed that due to the inability to quantify risks associated with centralized stablecoins and regulatory issues, it hopes to provide the community with several options to gauge preferences and thoughts regarding TUSD: 1. Iteratively lower the LT liquidation threshold for TUSD to 77.5% and the loan-to-value (LTV) to 75%; 2. Freeze the TUSD supply; 3. Abstain; 4. Maintain the status quo. The first two options are not mutually exclusive, so this is a multiple-choice vote. The voting will end on June 26. (source link)