Interesting things happening with RLUSD on Aave's Core Ethereum market. RLUSD borrow and supply APYs have consistently come in below other USD stablecoins. Borrow APY has hovered around 4.25% while the market-weighted average is closer to 5.5%. Supply APY for RLUSD sits just under 1%, far below the average of about 3.5%. As stablecoins increase in adoption, we should expect the interest rates to converge as any discrepancy would get arbitraged away. It follows that one might expect that the interest rate discrepancy is due to lack of demand for RLUSD in DeFi relative to the supply. This hypothesis also seems reasonable when we look at the utilization rates. It is not until we go one layer deeper, to the constraints set by Aave governance that we see what is actually happening. RLUSD borrows are currently capped at 120M causing a distortion to the market interest rate. Rather than there being a lack of demand (which looking at the surface level data might suggest), the interest rate discrepancy is caused by a distortionary effect of a borrow cap. Raising this cap would likely return RLUSD interest rates back to equilibrium. Given that there is also an active incentive program on RLUSD deposits, it seems like a good course of action would be to raise the borrow cap which would boost the aggregate APY to depositors once borrow balances reach equilibrium. Not only would raising the cap align governance policy with the active incentive campaign, but allowing borrow balances to increase would make supply stickier as base APY's would increase. By my back of the napkin calculations a simple doubling of the borrow cap on RLUSD would also lead to approximately $100K/month in net interest income to the protocol. Food for thought.