Summary
LlamaRisk recommends a third round of Add and Draw Cap increases for Aave V4 across the Core and Prime hubs, bringing the total supply cap ceiling to approximately $144M. Following the execution of Round 2 cap increases, the protocol has continued to attract organic deposits, with total supplied value now at $41,522,041. Multiple reserves have once again reached or are approaching their current cap limits, confirming sustained demand.
The proposed adjustments add approximately $71M in additional supply cap capacity. The Core Hub receives +$56M to support continued ETH, BTC, LST, and stablecoin growth. The Prime Hub receives +$14M to relieve collateral constraints that continue to limit participation. Additionally, four cross-hub credit lines are increased to relieve borrowing constraints on the Bluechip and Gold spokes. The Plus Hub is excluded from this round as current utilization does not warrant adjustment. Draw Caps are scaled proportionally, preserving existing Add/Draw ratios.
Changes Since Round 2 (April 14 → April 30, 2026)
Following the execution of Round 2 caps, the protocol has continued to grow naturally. Total deposits grew from $26,693,591 to $41,522,041 (+56%).
Source: LlamaRisk, April 30, 2026
The most notable inflows include weETH on the Core Etherfi Spoke (+$3,175,597), WETH on the Core Main Spoke (+$2,660,659), WBTC on the Core Main Spoke (+$1,999,832), WBTC on the Prime Bluechip Spoke (+$1,250,195), USDT on the Core Main Spoke (+$1,200,179).
Cap Utilization
The Core Hub now holds $33,626,289 in deposits (64% of Add Cap). The Prime Hub has grown to $7,626,249 (59% of Add Cap), while the Plus Hub remains at $269,503 (4%).
Source: LlamaRisk, April 30, 2026
7 reserves across Core and Prime have exceeded 80% Add Cap utilization:
- WBTC (Core Hub, Main): 100% Add Cap filled (40/40 — $3,041,295)
- wstETH (Prime Hub, Bluechip): 100% Add Cap filled (600/600 — $1,669,158)
- weETH (Core Hub, Main): 100% Add Cap filled (200/200 — $493,471)
- WBTC (Prime Hub, Bluechip): 99% Add Cap filled (30/30 — $2,265,714)
- LINK (Core Hub, Main): 99% Add Cap filled (74,130/75,000 — $675,353)
- wstETH (Core Hub, Main): 97% Add Cap filled (629/650 — $1,749,205)
- weETH (Core Hub, Etherfi): 96% Add Cap filled (2,400/2,500 — $5,921,698)
Source: LlamaRisk, April 30, 2026
WETH on the Core Main Spoke remains the single largest reserve at 77% deposit utilization ($9,591,590 of $12,407,584 cap).
A further 7 reserves sit in the 50–80% range:
- WETH (Prime Hub, Bluechip): 80% filled
- WETH (Core Hub, Main): 77% filled
- frxUSD (Core Hub, Main): 56% filled
- USDT (Core Hub, Main): 53% filled
- USDC (Prime Hub, Bluechip): 52% filled
- USDC (Core Hub, Forex): 50% filled
- USDG (Core Hub, Main): 50% filled
These are on trajectory to fill and benefit from preemptive increases.
Recommendations
We target approximately $71M in additional supply cap capacity, allocated to Core (+$56M) and Prime (+$14M). Critical reserves (>80% filled) receive priority allocation, reserves in the 50–80% range receive moderate increases, and reserves below 50% are left unchanged unless a specific demand signal warrants adjustment. Cross-hub credit lines for USDT and frxUSD to the Bluechip and Gold spokes are scaled to match observed borrowing demand.
For the EtherFi and Lido looping spokes, WETH Draw Caps are sized to match the respective collateral Add Caps, supporting full strategy capacity.
Source: LlamaRisk, April 30, 2026
Core Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Etherfi | WETH | 0 | - | 2,500 | 6,500 |
| Etherfi | weETH | 2,500 | 6,500 | 0 | - |
| Lido | WETH | 0 | - | 2,000 | 4,000 |
| Lido | wstETH | 2,000 | 4,000 | 0 | - |
| Main | LINK | 75,000 | 185,000 | 0 | - |
| Main | USDG | 2,000,000 | 3,500,000 | 1,350,000 | 2,360,000 |
| Main | USDT | 4,000,000 | 7,000,000 | 4,000,000 | 7,000,000 |
| Main | WBTC | 40 | 110 | 5 | 9 |
| Main | WETH | 5,500 | 14,500 | 475 | 1,250 |
| Main | cbBTC | 20 | 50 | 3 | - |
| Main | frxUSD | 2,500,000 | 4,500,000 | 1,700,000 | 3,060,000 |
| Main | weETH | 200 | 800 | 0 | - |
| Main | wstETH | 650 | 2,150 | 0 | - |
Prime Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Bluechip | USDC | 1,500,000 | 2,500,000 | 1,750,000 | 2,910,000 |
| Bluechip | USDT | 1,500,000 | 2,500,000 | 1,880,000 | 3,130,000 |
| Bluechip | WBTC | 30 | 90 | 0 | - |
| Bluechip | WETH | 500 | 1,700 | 0 | - |
| Bluechip | cbBTC | 25 | 45 | 0 | - |
| Bluechip | wstETH | 600 | 1,800 | 0 | - |
Draw Caps are scaled proportionally to their corresponding Add Caps, preserving existing Add/Draw ratios. For the EtherFi and Lido spokes, WETH Draw Caps are sized to match the respective collateral Add Caps, supporting full strategy capacity. All increases remain well within the equivalent market sizes observed on Aave V3 Core Instance and are sized conservatively against available DEX liquidity for liquidation feasibility.
Stablecoin Assessment
The following stablecoins receive increases based on deposit utilization trends:
- USDT (Core Main, 53% filled): Increased from 4,000,000 to 7,000,000 to provide headroom for continued borrowing activity and LP migration.
- frxUSD (Core Main, 56% filled): Increased from 2,500,000 to 4,500,000. This reserve reached 94% before Round 2 and continues to show sustained demand.
- USDG (Core Main, 50% filled): Increased from 2,000,000 to 3,500,000 to provide growth room as the reserve is at the deposit utilization threshold.
- USDC and USDT (Prime Bluechip, ~50% filled): Increased from 1,500,000 to 2,500,000 each, with Draw Caps scaled proportionally.
The following stablecoins are left unchanged:
- USDC (Core Main, 38% filled): Ample headroom at $6.0M cap with only $2.3M supplied.
- GHO (Core Main, 38% filled; Prime Bluechip, 20% filled): Sufficient capacity in both hubs.
- USDC (Core Forex, 50% filled): Small pool ($400K cap) with adequate remaining capacity.
Credit Lines
Several cross-hub credit lines from Core Hub to the Bluechip and Gold spokes have reached elevated utilization and require scaling to support continued borrowing activity. The USDT credit line to Bluechip is the most critical at 97% utilization, with only $12.4K remaining capacity.
| Origin | Target Spoke | Asset | Current Credit Line | Proposed Credit Line | Current Util |
|---|---|---|---|---|---|
| Core Hub | Bluechip | USDT | 375,000 | 625,000 | 96.7% |
| Core Hub | Gold | frxUSD | 62,500 | 100,000 | 91.2% |
| Core Hub | Gold | USDT | 125,000 | 200,000 | 84.9% |
| Core Hub | Bluechip | frxUSD | 200,000 | 300,000 | 61.7% |
The remaining credit lines (USDC, USDG, GHO, and EURC to their respective spokes) are below 41% utilization and are left unchanged. Ethena Ecosystem credit lines are also unchanged, consistent with the exclusion of the Plus Hub from this round.
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.