I'm not surprised he peeled with that. Given stack sizes and your 3b sizing, he's prob got good set hunting odds here (17x behind).

My standard 3b here would def be bigger pre - likely $1.10-$1.20 OOP.

That being said if he's calling low pairs you should probably start 3b his utg open much wider, as he'll have a hard time continuing on tons of flops. If you get the sense he's peeling pairs on flops then you can start barreling till you see him calling you down light.