Summary
LlamaRisk recommends a sixth round of Add and Draw Cap increases for Aave V4. Unlike previous rounds that applied targeted bumps to a small set of reserves, Round 6 raises caps across most reserves on all three hubs, including reserves that are currently underutilized. The aim is to give users enough headroom to enter sizeable collateral positions and to ensure each hub holds meaningful stablecoin supply, rather than a 1 to 3M cap that fills with a single deposit. Prime is given a wider cushion than Core because it is the hub that most needs headroom to scale. USDG and frxUSD on Core Main each receive an additional 10M increase to support the continuation of their respective incentive programs into the next cycle. Expired Pendle PT collateral on the Plus Hub (PT-sUSDE-7MAY2026, PT-USDe-7MAY2026) has its Add Cap reduced to 0 to disable new deposits on those listings.
The proposed adjustments add approximately $167M in additional Add Cap capacity, distributed across all three hubs: Core +$107M, Prime +$36M, Plus +$24M. Total Add Cap ceiling moves from approximately $198M to $365M. Draw Caps are scaled proportionally to preserve existing Add/Draw ratios.
Rationale
Earlier rounds bumped only the reserves that were actively pressing against their caps. The cumulative result is a list of reserves, particularly stablecoins on smaller spokes and assets on Prime and Plus, that still carry caps sized for the protocol’s launch period. Those caps are tight enough that a single sizeable deposit fills them and any user who wants to take a meaningful collateral or borrow position runs into the ceiling.
Round 6 takes a broader view. Caps are raised across most reserves on the protocol, including reserves that are currently underutilized, with two goals in mind. First, each hub should hold enough stablecoin supply that users can borrow at meaningful size without exhausting a reserve in a single position. Second, collateral caps should leave room for new positions to be entered without forcing a cap revision before the position is even open.
Prime is treated with more cushion than Core. Prime is in its growth phase and the lift from 3M caps to a more generous size matters more here. On Plus, sizing is more conservative because total deposits remain under $300K and the spoke is still in bootstrap before new PT maturities are onboarded.
Changes Since Round 5 (May 26 to June 2, 2026)
Following the execution of Round 5 caps, deposits have continued to grow. Total deposits grew from $89,635,315 to $117,825,486 (+31%), mainly driven by frxUSD and USDG deposit increase.
Source: LlamaRisk, June 2, 2026
The most notable inflows include USDG on the Core Main Spoke (+$9,999,439), frxUSD on the Core Main Spoke (+$9,995,998), USDT on the Core Main Spoke (+$4,017,489), WETH on the Core Main Spoke (+$1,755,271), weETH on the Core Etherfi Spoke (+$903,971).
Cap Utilization
The Core Hub now holds $104,115,469 in deposits (65% of Add Cap). The Prime Hub holds $13,445,277 (43% of Add Cap), while the Plus Hub remains at $264,740 (4%).
Source: LlamaRisk, June 2, 2026
3 reserves across the protocol have exceeded 80% Add Cap utilization:
- frxUSD (Core Hub, Main): 100% Add Cap filled (20,000,281/20,000,000, $19,994,761)
- USDG (Core Hub, Main): 100% Add Cap filled (19,999,546/20,000,000, $19,999,546)
- USDT (Core Hub, Main): 83% Add Cap filled (7,054,665/8,500,000, $7,045,749)
Source: LlamaRisk, June 2, 2026
Further 10 reserves sit in the 50 to 80% range:
- AAVE (Core Hub, Main): 78% filled
- WBTC (Core Hub, Main): 71% filled
- USDC (Core Hub, Main): 67% filled
- wstETH (Prime Hub, Bluechip): 65% filled
- XAUt (Core Hub, Gold): 57% filled
- USDT (Prime Hub, Bluechip): 56% filled
- cbBTC (Core Hub, Main): 53% filled
- USDC (Prime Hub, Bluechip): 53% filled
- weETH (Core Hub, Etherfi): 52% filled
- WETH (Core Hub, Main): 51% filled
Recommendations
Round 6 targets approximately $167M in additional Add Cap capacity across all three hubs. The stablecoin re-baselining (Core Main, Core Forex, Prime Bluechip, both Plus Hub spokes, and USDG/frxUSD +$10M each on Core Main) accounts for the largest share. Most non-stable reserves are bumped as well, both small ones lifted to a 3 to 5M range (AAVE, weETH on Core Main, LBTC, XAUt) and the larger ETH and BTC reserves on Core Main, Core Etherfi, Core Lido and Prime Bluechip. Expired Pendle PT collateral on Plus is reduced to a cap of 0 in the same change set.
Source: LlamaRisk, June 2, 2026
Source: LlamaRisk, June 2, 2026
Core Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Etherfi | weETH | 8,500 | 11,000 | 0 | - |
| Forex | EURC | 1,125,000 | 4,300,000 | 1,170,000 | 4,500,000 |
| Forex | USDC | 1,500,000 | 10,000,000 | 500,000 | 3,330,000 |
| Forex | USDT | 1,500,000 | 10,000,000 | 500,000 | 3,330,000 |
| Gold | EURC | 0 | - | 50,000 | 100,000 |
| Gold | GHO | 0 | - | 62,500 | 125,000 |
| Gold | RLUSD | 0 | - | 62,500 | 125,000 |
| Gold | USDC | 0 | - | 250,000 | 500,000 |
| Gold | USDG | 0 | - | 250,000 | 500,000 |
| Gold | USDT | 0 | - | 400,000 | 800,000 |
| Gold | XAUt | 500 | 1,000 | 0 | - |
| Gold | frxUSD | 0 | - | 250,000 | 500,000 |
| Lido | wstETH | 4,800 | 5,900 | 0 | - |
| Lombard | LBTC | 9 | 45 | 0 | - |
| Main | AAVE | 12,000 | 67,000 | 0 | - |
| Main | EURC | 225,000 | 4,300,000 | 150,000 | 2,900,000 |
| Main | GHO | 1,500,000 | 10,000,000 | 1,500,000 | 10,000,000 |
| Main | LINK | 430,000 | 610,000 | 0 | - |
| Main | RLUSD | 500,000 | 5,000,000 | 340,000 | 3,400,000 |
| Main | USDC | 6,000,000 | 10,000,000 | 6,000,000 | 10,000,000 |
| Main | USDG | 20,000,000 | 30,000,000 | 13,600,000 | 20,400,000 |
| Main | USDT | 8,500,000 | 12,500,000 | 8,500,000 | 12,500,000 |
| Main | WBTC | 170 | 240 | 15 | 21 |
| Main | WETH | 18,500 | 24,000 | 1,600 | 2,050 |
| Main | cbBTC | 85 | 115 | 5 | 7 |
| Main | frxUSD | 20,000,000 | 30,000,000 | 13,600,000 | 20,400,000 |
| Main | weETH | 1,000 | 1,500 | 0 | - |
| Main | wstETH | 2,800 | 4,400 | 0 | - |
Prime Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Bluechip | GHO | 3,000,000 | 7,500,000 | 3,375,000 | 8,440,000 |
| Bluechip | USDC | 3,000,000 | 12,500,000 | 3,500,000 | 14,590,000 |
| Bluechip | USDT | 3,000,000 | 12,500,000 | 3,750,000 | 15,625,000 |
| Bluechip | WBTC | 120 | 185 | 0 | - |
| Bluechip | WETH | 2,200 | 3,200 | 0 | - |
| Bluechip | cbBTC | 60 | 90 | 0 | - |
| Bluechip | wstETH | 2,400 | 4,100 | 0 | - |
Prime Bluechip is bumped with a wider growth cushion than Core. USDC and USDT are raised from 3M to 12.5M each, GHO from 3M to 7.5M, all with draw caps scaled at the established ratios. The Prime non-stables (WBTC, cbBTC, WETH, wstETH) are bumped enough to leave clear runway for new collateral positions as Prime continues to grow. All four Prime non-stables remain supply-only.
Plus Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Ethena Correlated | PT-USDe-7MAY2026 | 50,000 | 0 | 0 | - |
| Ethena Correlated | PT-sUSDE-7MAY2026 | 400,000 | 0 | 0 | - |
| Ethena Correlated | USDe | 312,500 | 5,000,000 | 325,000 | 5,200,000 |
| Ethena Correlated | sUSDe | 250,000 | 4,060,000 | 0 | - |
| Ethena Ecosystem | GHO | 1,000,000 | 3,000,000 | 1,150,000 | 3,450,000 |
| Ethena Ecosystem | PT-USDe-7MAY2026 | 250,000 | 0 | 0 | - |
| Ethena Ecosystem | PT-sUSDE-7MAY2026 | 2,000,000 | 0 | 0 | - |
| Ethena Ecosystem | USDC | 500,000 | 3,000,000 | 625,000 | 3,750,000 |
| Ethena Ecosystem | USDT | 500,000 | 3,000,000 | 625,000 | 3,750,000 |
| Ethena Ecosystem | USDe | 1,000,000 | 5,000,000 | 960,000 | 4,800,000 |
| Ethena Ecosystem | sUSDe | 1,000,000 | 4,060,000 | 0 | - |
Plus Hub sizing is more conservative than Core or Prime because total deposits on Plus are still under $300K. USDe is raised to 5,000,000 on both spokes as the primary Ethena-native borrowable. The bluechip stables (USDC, USDT, GHO on the Ethena Ecosystem spoke) are raised to 3,000,000 each. sUSDe, the yield-bearing collateral asset, is sized to approximately $5M USD-equivalent on both spokes (4,060,000 tokens at the current sUSDe price). Draw caps on borrowable assets are scaled at the existing ratios. The expired Pendle PT collateral has its Add Cap reduced to 0, disabling new deposits while leaving existing positions intact.
Credit Lines
The Bluechip spoke is configured as a cross-spoke borrow venue: stablecoins are supplied on Core Hub and made borrowable on Bluechip without local supply, extending a credit line. The current utilization of this credit line’s draw caps is at ceiling, with frxUSD in particular sitting at 96% draw utilization. While during the bootstrapping phase, it is more capital efficient to extend credit lines, they should not lead to the dominant proportion of the supply in the remote spoke, therefore we intend to keep the scale of the credit line draw caps smaller.
| Spoke | Asset | Current Draw Cap | Current Draw Util | Proposed Draw Cap |
|---|---|---|---|---|
| Bluechip | frxUSD | 1,000,000 | 96% | 3,000,000 |
| Bluechip | USDC | 375,000 | 74% | 2,000,000 |
| Bluechip | USDT | 1,250,000 | 41% | 2,500,000 |
| Bluechip | EURC | 150,000 | 16% | 300,000 |
Next Steps
Following review and confirmation, the recommended cap adjustments will be applied directly via the Aave Security Council. We will continue to monitor cap utilization across all hubs and provide further adjustment recommendations as market conditions evolve. Plus Hub utilization will be reassessed once deposits move materially above the current $300K total and new PT maturities are onboarded.
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.