Summary
LlamaRisk recommends an initial round of Add and Draw Cap increases for Aave V4 across all three hubs (Core, Prime, and Plus) totaling approximately $28M in additional deposit room. The V4 launch deployed with intentionally conservative caps aligned with Aave’s guarded launch approach. Since activation, several reserves have reached or are approaching capacity, reflecting organic demand that the current parameters are now constraining. This increase represents the next phase of a conservative and guarded launch strategy, ensuring that Aave V4 scales gradually and is battle-tested at incrementally larger sizes before further expansion.
The proposed adjustments allocate the majority of the increase to the Core Hub (~$21M), where ETH, LST, LRT looping demand, and stablecoin supply growth have the most impact. The Prime Hub receives ~$5M to relieve saturated collateral caps, and the Plus Hub receives ~$2M in modest increases consistent with its lower, Ethena-focused utilization. Draw Caps are scaled proportionally, preserving existing Add/Draw ratios across all reserves.
Cap Utilization
At launch, Add and Draw Caps were calibrated conservatively to limit initial exposure while the V4 architecture matured in production. Within days, several reserves have absorbed their full cap allocation, indicating that the initial sizing has been validated by realized demand and can now be expanded.
Source: LlamaRisk, April 9, 2026
The Core Hub accounts for the vast majority of protocol activity at $9,902,905 supplied (35.7% utilization), followed by the Prime Hub at $1,206,954 (8.8%) and the Plus Hub at $202,630 (3.8%).
Seven reserves across Core and Prime have exceeded 80% Add Cap utilization, with four at 100% capacity. On the Draw Cap side, USDT credit line utilization on the Bluechip Spoke has reached 100%, and WETH Draw on the EtherFi Spoke stands at 97%, directly constraining looping activity.
Source: LlamaRisk, April 9, 2026
WETH on the Core Main Spoke is the single largest constraint at 91.7% filled ($3.04M of $3.31M cap). This reserve serves as the primary collateral entry point for the Core Hub and also backs ETH Draw Caps across the Lido, EtherFi, and Kelp looping spokes. The EtherFi WETH Draw Cap is at 97% utilization, meaning users depositing weETH as collateral are nearly unable to borrow additional ETH for looping, the strategy the spoke was designed to support.
weETH (EtherFi Spoke) and weETH (Main Spoke) have both reached 100% Add Cap utilization, as has LINK on the Main Spoke and WBTC on the Prime Bluechip Spoke. The Prime Hub’s wstETH is at 93%, demonstrating strong demand for the non-borrowable, safety-first design that eliminates rehypothecation risk.
For stablecoins, USDC on the Core Main Spoke is at 71% and frxUSD at 82%. USDT on the Prime Bluechip Spoke stands at 78%, approaching the point where further stablecoin borrowing demand will be constrained.
A further nine reserves sit in the 50-80% range, including wstETH (Main and Lido), rsETH (Kelp), AAVE, WBTC (Main), and USDC (Prime Bluechip and Forex). While not yet critical, these reserves are on a trajectory to reach capacity and benefit from preemptive increases to avoid disruption. Rest of the reserves do not yet have meaningful deposits, therefore are excluded from the overall figures.
Recommendations
We target a total cap increase of approximately $28M, allocated proportionally to observed demand and prioritizing reserves with the highest utilization. Within each hub, critical reserves (>80% filled) receive priority allocation, growing reserves (50-80%) receive moderate increases, and reserves below 50% utilization are left unchanged unless a specific demand signal warrants adjustment.
For the looping spokes (Lido, EtherFi, Kelp), collateral Add Caps and WETH Draw Caps are scaled to roughly the same level across all three spokes, providing uniform looping capacity regardless of the underlying LST/LRT protocol.
Source: LlamaRisk, April 9, 2026
Core Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Etherfi | WETH | 0 | - | 530 | 1,600 |
| Etherfi | weETH | 500 | 1,500 | 0 | - |
| Forex | USDC | 187,500 | 300,000 | 50,000 | 100,000 |
| Forex | USDT | 200,000 | 300,000 | 50,000 | 100,000 |
| Gold | XAUt | 125 | 200 | 0 | - |
| Kelp | WETH | 0 | - | 588 | 1,600 |
| Kelp | rsETH | 563 | 1,500 | 0 | - |
| Lido | WETH | 0 | - | 441 | 1,600 |
| Lido | wstETH | 406 | 1,500 | 0 | - |
| Main | AAVE | 5,000 | 8,000 | 0 | - |
| Main | GHO | 500,000 | 1,000,000 | 500,000 | 1,000,000 |
| Main | LINK | 31,250 | 50,000 | 0 | - |
| Main | USDC | 1,250,000 | 4,000,000 | 1,250,000 | 4,000,000 |
| Main | USDG | 500,000 | 1,500,000 | 340,000 | 1,000,000 |
| Main | USDT | 1,250,000 | 2,500,000 | 1,250,000 | 2,500,000 |
| Main | WBTC | 16 | 25 | 1 | 2 |
| Main | WETH | 1,500 | 3,500 | 130 | 300 |
| Main | frxUSD | 500,000 | 1,500,000 | 312,500 | 1,000,000 |
| Main | weETH | 58 | 150 | 0 | - |
| Main | wstETH | 229 | 400 | 0 | - |
Prime Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Bluechip | GHO | 500,000 | 2,000,000 | 562,500 | 2,250,000 |
| Bluechip | USDC | 150,000 | 750,000 | 175,000 | 875,000 |
| Bluechip | USDT | 150,000 | 750,000 | 187,500 | 940,000 |
| Bluechip | WBTC | 6 | 15 | 0 | - |
| Bluechip | WETH | 130 | 300 | 0 | - |
| Bluechip | cbBTC | 5 | 12 | 0 | - |
| Bluechip | wstETH | 114 | 300 | 0 | - |
Plus Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Ethena Ecosystem | GHO | 500,000 | 750,000 | 562,500 | 850,000 |
| Ethena Ecosystem | PT-sUSDE-7MAY2026 | 1,400,000 | 2,000,000 | 0 | - |
| Ethena Ecosystem | USDC | 150,000 | 300,000 | 187,500 | 375,000 |
| Ethena Ecosystem | USDT | 150,000 | 300,000 | 187,500 | 375,000 |
| Ethena Ecosystem | USDe | 312,500 | 750,000 | 300,000 | 720,000 |
| Ethena Ecosystem | sUSDe | 375,000 | 750,000 | 0 | - |
Draw Caps are scaled proportionally to their corresponding Add Caps, preserving existing Add/Draw ratios. For looping spokes (Lido, EtherFi, Kelp), ETH Draw Caps are sized to match the respective collateral Add Caps, supporting full looping capacity. All increases remain well within the equivalent market sizes observed on Aave V3 Core Instance and are sized overly conservatively against available DEX liquidity for liquidation feasibility for the purpose of guarded launch.
Credit Lines
The initial credit line configuration from Core Hub to the Ethena Ecosystem Spoke (USDC 125,000, USDT 125,000, frxUSD 62,500) and to the Bluechip Spoke (USDC 125,000, USDT 125,000, frxUSD 62,500, EURC 50,000) should be scaled proportionally to maintain a safe ratio relative to the increased stablecoin caps. We recommend the following adjustments:
| Origin | Target Spoke | Asset | Current Credit Line | Proposed Credit Line |
|---|---|---|---|---|
| Core Hub | Ethena Ecosystem | USDC | 125,000 | 250,000 |
| Core Hub | Ethena Ecosystem | USDT | 125,000 | 250,000 |
| Core Hub | Ethena Ecosystem | frxUSD | 62,500 | 125,000 |
| Core Hub | Bluechip | USDC | 125,000 | 250,000 |
| Core Hub | Bluechip | USDT | 125,000 | 250,000 |
| Core Hub | Bluechip | frxUSD | 62,500 | 125,000 |
| Core Hub | Bluechip | EURC | 50,000 | 100,000 |
These credit lines are scaled by the same factor (~2x) as the corresponding stablecoin Add Cap increases in the destination spokes, preserving the existing ratio of credit line capacity to
Next Steps
Following review and confirmation, the recommended cap adjustments will be applied directly using the Aave Security Council. We will continue to monitor cap utilization across all hubs and provide further adjustment recommendations as market conditions evolve and organic demand develops.
Disclaimer
This review was independently prepared by LlamaRisk, a community risk service provider for the Aave DAO. LlamaRisk did not receive compensation from the protocol(s) or their affiliated entities for this work. The information provided should not be construed as legal, financial, tax, or professional advice.