Aave raises USDT borrowing costs sooner as liquidity tightens

Aave raised borrowing costs for USDT sooner than expected as liquidity tightens. The move reflects growing constraints on stablecoin supply, impacting DeFi lending dynamics. Borrowers may face higher interest rates, potentially reducing leverage demand and shifting strategies toward other assets. This adjustment highlights the sensitivity of DeFi protocols to liquidity conditions in the stablecoin market.