Aave’s decentralized autonomous organization has approved AIP-459, increasing the reserve factor on USDC from 10% to 15%. The governance change is designed to capture a larger share of revenue from one of the protocol’s most widely used stablecoin markets.

The decision comes as total value locked on Aave has risen above $14 billion, underscoring renewed activity across the lending platform. In DeFi, the reserve factor determines how much of the interest paid by borrowers is set aside for the protocol rather than distributed to suppliers.

Raising the USDC reserve factor can improve Aave’s earnings, but it may also reduce returns for users supplying the stablecoin. Supporters of the proposal likely view the adjustment as a way to strengthen the protocol’s financial position while demand remains elevated.

AIP-459 reflects how Aave’s community continues to fine-tune core market parameters in response to changing usage patterns and liquidity conditions. The vote adds to a series of governance decisions aimed at balancing user incentives, risk management, and protocol revenue.