Summary
LlamaRisk recommends a twelfth round of Add Cap and Draw Cap adjustments for Aave V4. Following the execution of Round 11, total deposits across the five hubs on two chains have grown to approximately $346M, with inflows led by USDG on the Core Main Hub alongside continued growth across major collateral reserves, including wstETH, weETH, and sUSDe. This round prioritizes replenishing collateral reserves that have exceeded target utilization thresholds, relieving draw caps that are highly utilized, rebalancing capacity on the Avalanche Forex Spoke following continued demand, and introducing a new USDG credit line.
The proposed adjustments add approximately $48M in additional Add Cap capacity: Ethereum Core $37M, Ethereum Prime $7M, Global Dollar $1M, Avalanche Core $3M. Total market capacity would move from approximately $799M to $847M.
Rationale
Round 11’s caps are now live, and total deposits have increased by approximately 14% from the last update. Growth has been led by USDG on the Core Main Hub alongside continued expansion across major collateral reserves, including wstETH, weETH, and sUSDe. The additional collateral capacity added in Round 11 on Ethereum Prime Hub remains largely unused, leaving ample headroom across both collateral and borrow markets. However, the USDC add cap is to be increased to 20M to accommodate larger deposits and borrowing demand during the ongoing campaign, which subsidizes borrow APY by 2.02%.
We continue scaling the Avalanche deployment in response to the elevated demand for Forex markets observed last week, which has since unwound. To support larger deployments, the caps for EURC, USDC, and USDT are to be increased.
Tokenized spoke caps are also to be expanded following the Core USDG tokenization spoke reaching capacity. In addition, third-party participants have expressed interest in supplying other stablecoins through the same tokenization venue. As a result, we propose the add caps for USDT, USDC, and EURC to be increased to 1M. The recommendations also expand collateral and draw caps that have exceeded target utilization, and relieve fully utilized credit lines, which includes the creation of a new credit line for USDG from Core to Global Dollar Hub.
Changes Since Round 11 (August 3, 2026)
Following the execution of Round 11 caps, deposits have continued to grow. Total deposits grew from $303,279,228 to $345,818,401 (+14%).
Source: LlamaRisk, August 3, 2026
The most notable inflows include USDG on the Core Main Spoke (+$9,955,027), WETH on the Core Main Spoke (+$6,491,144), weETH on the Core Etherfi Spoke (+$4,760,429), wstETH on the Core Main Spoke (+$4,622,957), and USDT on the Core Main Spoke (+$4,521,965).
Cap Utilization
Total deposits across all 5 hubs stand at $345,818,401. The Core Hub holds $277,237,214 (54% of Add Cap), the Prime Hub holds $30,025,674 (21% of Add Cap), the Plus Hub holds $10,805,533 (27% of Add Cap), the Global Dollar Hub holds $22,894,915 (30% of Add Cap), and the Avalanche Core Hub holds $4,855,064 (17% of Add Cap).
Source: LlamaRisk, August 3, 2026
2 reserves across the protocol have exceeded 80% Add Cap utilization:
- USDG (Core Hub, Tokenization): 100% Add Cap filled (124,803/125,000, $124,811)
- USDG (Core Hub, Main): 92% Add Cap filled (59,954,657/65,000,000, $59,958,853)
Source: LlamaRisk, August 3, 2026
A further 10 reserves sit in the 50 to 80% range:
- USDC (Avalanche Core Hub, Forex): 76% filled
- wstETH (Core Hub, Main): 72% filled
- USDT (Core Hub, Main): 68% filled
- frxUSD (Core Hub, Main): 60% filled
- weETH (Core Hub, Etherfi): 59% filled
- PT-USDG-24SEP2026 (Global Dollar Hub, USDG Pendle): 56% filled
- WETH (Core Hub, Main): 55% filled
- sAVAX (Avalanche Core Hub, AVAX Correlated): 54% filled
- WAVAX (Avalanche Core Hub, Main): 53% filled
- cbBTC (Core Hub, Main): 50% filled
Recommendations
Round 12 targets approximately $48M in additional Add Cap capacity (Ethereum Core +$37M, Ethereum Prime +$7M, Global Dollar +$1M, Avalanche Core +$3M). It also provides draw-side relief for five borrow-only lines: Ethena frxUSD, Bluechip USDT, Forex USDG, Etherfi WETH, and Gold USDT. All five are operating above 60% utilization.
Source: LlamaRisk, August 3, 2026
Ethereum Core Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Etherfi | WETH | 0 | - | 20,000 | 30,000 |
| Etherfi | weETH | 28,000 | 37,000 | 0 | - |
| Forex | USDG | 0 | - | 500,000 | 1,000,000 |
| Gold | USDT | 0 | - | 2,000,000 | 2,500,000 |
| Main | USDT | 20,000,000 | 24,000,000 | 20,000,000 | - |
| Main | wstETH | 10,000 | 15,000 | 0 | - |
| Tokenization | EURC | 112,500 | 1,000,000 | 0 | - |
| Tokenization | USDC | 312,500 | 1,000,000 | 0 | - |
| Tokenization | USDG | 125,000 | 1,000,000 | 0 | - |
| Tokenization | USDT | 312,500 | 1,000,000 | 0 | - |
Ethereum Prime Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Bluechip | USDC | 12,590,000 | 20,000,000 | 14,590,000 | 20,000,000 |
Ethereum Global Dollar Hub
We recommend adding USDC as a borrowable reserve against syrupUSDG, with collateral functionality disabled (CF = 0.00%), subject to the add and draw caps specified below.
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Maple syrupUSDG | USDC | - | 1,000,000 | - | 1,000,000 |
Avalanche Core Hub
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Forex | EURC | 300,000 | 1,600,000 | 400,000 | 1,600,000 |
| Forex | USDC | 400,000 | 1,000,000 | 350,000 | 950,000 |
| Forex | USDt | 400,000 | 1,000,000 | 350,000 | 950,000 |
Credit Lines
We propose increasing the USDT credit line to the Prime Hub and the frxUSD credit line to the Plus Hub, as both existing draw caps have reached near-100% utilization while maintaining conservative exposure relative to the available native supply.
| Spoke | Asset | Current Draw Cap | Current Draw Util | Proposed Draw Cap |
|---|---|---|---|---|
| Bluechip | USDT | 2,500,000 | 95% | 4,000,000 |
| Ethena Ecosystem | frxUSD | 500,000 | 100% | 1,000,000 |
Additionally, we propose establishing a USDG credit line from Core to Global Dollar Hub, allowing syrupUSDG depositors to access the existing USDG liquidity on Core Hub until native USDG supply on Global Dollar Hub reaches sufficient scale.
| Chain | Direction | Spoke | Asset | Proposed Draw Cap |
|---|---|---|---|---|
| Ethereum | Core → Global Dollar | Maple syrupUSDG | USDG | 5,000,000 |
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. All the Hub utilization will be reassessed as deposits grow into their current ceilings.
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.