HTX's 570 million USDT redeposit cuts Aave USDT borrowing rate from 30% to 5.06%

HTX has redeposited 570 million USDT back into Aave, causing the borrowing interest rate for USDT on Aave to return to a normal range from around 30% to the current deposit rate of 3.73% and borrowing rate of 5.06%.

Prior to this, due to the decrease in available liquidity, USDT's deposit and borrowing rates surged, with the deposit rate rising from 3.8% to 29% and the borrowing rate rising from 4.4% to 33.6%.

This redeposit by HTX has stabilized the interest rates on Aave, indicating a return to normal market conditions. The sudden withdrawal of 5.7 billion USDT had caused a significant spike in interest rates, but the redeposit has helped to mitigate this impact. This event highlights the influence that large transactions can have on the liquidity and interest rates of decentralized finance platforms. The swift return of funds by HTX demonstrates the dynamic nature of the market and the importance of liquidity management in maintaining stable interest rates.