Circle chief economist Gordon Liao filed a new Aave V3 governance proposal seeking sharper changes to the Ethereum Core USDC market as a liquidity crunch persisted. The proposal calls for pushing the USDC borrow cap toward 50% and lowering optimal utilization, with the aim of driving borrowing costs higher and attracting fresh supply to ease congestion tied to rsETH-driven demand. This builds on Circle’s earlier emergency push after USDC utilization stayed near 100% and supply dropped by about $60 million in 24 hours.