Circle Draws Backlash for Aave USDC Rate Hike Proposal

Circle is facing a wave of criticism after a proposal linked to its chief economist suggested sharply increasing USDC borrowing costs on Aave, as the lending pool grinds through a liquidity crunch that has dragged on since the KelpDAO exploit. The plan has gone down badly with DeFi users, many of whom say it would make things worse for people already trapped in a broken market. Proposal to Raise Aave USDC Rates On Ap…