USD.AI, a stablecoin protocol, announced a $100 million increase in the autoUSDai cap, effective October 9, to stabilize the USDai market amid increased demand. This measure aims to support the orderly liquidation of USDT0 positions in the Euler Frontier USDai market, where the exchange rate has risen to $1.06. Euler Finance recently paused USDai lending on Plasma, with partial repayments set to begin tomorrow and LTV reductions starting Wednesday. USD.AI will also adjust its reward system, reducing Allo Gam multipliers for non-aligned pools from 10x to 3x, while new USDC deposits will be transferred to autoUSDai on Arbitrum with a 25x points multiplier for 30 days. These steps are designed to protect the USDai peg and incentivize market stability.