Aave Monarch USDT0 Pool Has $4.4M Unborrowed Balance Out of $55.9M Supply

The Aave Monarch USDT0 lending pool's supply stands at $55.9 million (approximately KRW 75.1 billion), with an unborrowed balance of around $4.4 million (approximately KRW 5.9 billion). The unutilized balance is not held in specific accounts or reserved withdrawal amounts but represents estimated liquidity that remains unused within the pool, which can fluctuate as new deposits are added or borrowers repay loans.

As of September 13 at 6:09 AM KST, the supply was $55.9 million and borrowings totaled $51.5 million (approximately KRW 69.2 billion), leaving an unborrowed balance of about $4.4 million or 7.9% of total supply. The Aave protocol states that suppliers can withdraw assets they have not yet lent out, but if their assets are used as collateral, they may need to repay partially or add more collateral to maintain loan health.

The pool currently displays a 6.10% APR, though this does not mean all deposited assets can be withdrawn immediately. High utilization rates could lead to increased borrowing and supply interest rates under Aave's rate model. TokenLogic reported that the Monarch USDT0 supply decreased from around $167 million in mid-August to approximately $57 million by early September, with borrowings of about $52.8 million and a utilization rate of 92.2%.

TokenLogic proposed raising the base interest rate curve Slope1 for USDT0 and USDC from 4.40% to 5.00%, which could increase displayed borrowing rates from approximately 5.70% to 6.28%. This target rate includes organic yield plus WMON incentives, though actual rates may vary based on incentive campaign size and renewal.

Aave's model adjusts interest rates upward as utilization rises, encouraging more deposits and repayments. However, higher utilization reduces the unutilized liquidity buffer. The current figures do not indicate a withdrawal halt or failed large withdrawals; no $5 million withdrawal attempts were recorded. Instead, these metrics reflect overall pool supply and borrowing activity without specific user transactions.