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How Aave’s Variable Borrow Rate Changes an Existing USDT Loan

The Defiant·October 28, 2026·1 min read
How Aave’s Variable Borrow Rate Changes an Existing USDT Loan

Aave’s Ethereum USDT curve now raises borrowing costs sooner as liquidity tightens. Existing debt keeps its accrued interest; a new rate changes how the balance grows from then on. This variable borrow rate mechanism impacts USDT loans on Aave, affecting borrowers' costs as market conditions shift.

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