USD.AI announced a $100 million cap increase for autoUSDai effective October 9, aimed at facilitating the closure of USDT0 positions in Euler Frontier USDai markets amid rising demand and peg pressure.
According to USD.AI’s official statement, the stablecoin protocol will raise the autoUSDai cap by $100 million on October 9 to support the orderly closure of USDT0 positions in the Euler Frontier USDai market. The company emphasized that this adjustment is a targeted stabilization measure rather than a routine cap increase. The surge in demand has driven USDai’s price to $1.06. In related actions, Euler Finance paused USDai lending on Plasma, with partial repayments scheduled to start the following day and loan-to-value reductions set for Wednesday. USD.AI will also reduce Allo Gam multipliers for non-aligned pools from 10x to 3x and direct new USDC deposits to Arbitrum’s autoUSDai, offering a 25x points multiplier for 30 days.