Aave Labs welcomes and acknowledged LlamaRisk’s recommendation. The proposed changes were successfully implemented through the Aave Security Council, see transaction: 0x554d4aeb5c7579ce68a21e43044db6a0a863072e285c8de2a91569c22e65bbc2.
We are fully committed to a security-first approach to market growth and to ongoing support of risk parameter updates for this purpose.
LlamaRisk recommends a fourth round of Add and Draw Cap increases for Aave V4 across the Core and Prime hubs, bringing the total supply cap ceiling to approximately $180M. Following the execution of Round 3 cap increases, deposits have continued to grow strongly and frxUSD on Core/Main has filled to 100% Add Cap utilization. With incentive programs for both frxUSD and USDG launching this week, this round combines an explicit incentive-driven cap adjustment on those two assets with smaller, utilization-driven bumps on the collateral and stablecoin reserves that support cross-hub borrow demand.
The proposed adjustments add approximately $41M in additional supply cap capacity. The Core Hub receives +$33M, the bulk of which is the frxUSD and USDG step-up to 10M each. The Prime Hub receives +$7M to scale Bluechip collateral capacity that feeds cross-hub borrowing into the new stable caps. Two existing cross-hub credit lines (frxUSD and USDT to Bluechip) are scaled to support the larger stablecoin headroom; USDG is kept on Core/Main only this round so that one utilization cycle is observed before opening cross-hub exposure. The Plus Hub is excluded as current utilization does not warrant adjustment. Draw Caps are scaled proportionally, preserving existing Add/Draw ratios.
This round serves two intersecting demand signals.
1. Incentive programs are launching on frxUSD and USDG. The reward programs are to be rolled out on both stablecoins beginning the week of May 21st. To absorb the expected supply-side inflows without compressing reward APYs into invisibility, the Core/Main caps for both assets are raised in a single tranche to 10,000,000. A single-tranche move gives the rewards program a stable target and avoids mid-incentive cap exhaustion. frxUSD on Core/Main is already at 100% Add Cap utilization independent of the incentive, which directly validates the argument.
2. Collateral capacity to generate borrow demand for the new stable caps. Larger frxUSD/USDG supply only earns yield if there is matched borrow demand. Round 4 also bumps high-utilization collateral on Core/Main (WETH, WBTC, wstETH, weETH, LINK) and on Prime/Bluechip (WBTC, wstETH, WETH, cbBTC) so that depositors of BTC and ETH variants have room to draw frxUSD and/or USDG against their collateral.
The frxUSD and USDG targets are sized against observable DEX liquidity. Approximately $16M of frxUSD can be sold to bluechip stablecoins (USDC, USDT) on Curve and Uniswap V3 with manageable slippage, and approximately $5M of USDG can be sold to bluechip stables on the same venues. Both figures comfortably exceed the proposed 10M caps under nominal flow with the peg stability buffer sitting tight historically for both assets.
Following the execution of Round 3 caps, the protocol has continued absorbing deposits. Total deposits grew from $41.5M to $63.3M (+53%).
The most notable inflows include WBTC on the Core Main Spoke (+$4.5M), frxUSD on the Core Main Spoke (+$3M), WETH on the Core Main Spoke (+$2.6M), wstETH on the Core Lido Spoke (+$1.3M), cbBTC on the Core Main Spoke (+$1.3M).
The Core Hub now holds $52.5M in deposits (50% of Add Cap). The Prime Hub has grown to $10.5M (40% of Add Cap), while the Plus Hub remains at $240,845 (3%).
3 reserves across Core and Prime have exceeded 80% Add Cap utilization:
WETH on the Core Main Spoke remains the single largest reserve at 40% deposit utilization ($12.2M of $30.6M cap).
A further 5 reserves sit in the 50–80% range:
These are on trajectory to fill and benefit from preemptive increases.
We target approximately $41M in additional supply cap capacity, allocated to Core (+$33M) and Prime (+$7M). frxUSD and USDG on Core/Main are raised in a single tranche to 10M each to absorb incentive-program inflows. Other tight-cap reserves (>80% filled) receive modest 20–33% bumps rather than the 2–3x increases used in earlier rounds. Cross-hub credit lines for frxUSD and USDT to the Bluechip and Gold spokes are scaled to match the larger stable headroom on Core/Main.
For the EtherFi and Lido spokes, WETH Draw Caps are sized to match the respective collateral Add Caps, supporting full strategy capacity.
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Etherfi | WETH | 0 | - | 6,500 | 8,500 |
| Etherfi | weETH | 6,500 | 8,500 | 0 | - |
| Lido | WETH | 0 | - | 4,000 | 4,800 |
| Lido | wstETH | 4,000 | 4,800 | 0 | - |
| Main | LINK | 185,000 | 220,000 | 0 | - |
| Main | USDG | 3,500,000 | 10,000,000 | 2,360,000 | 6,800,000 |
| Main | USDT | 7,000,000 | 8,500,000 | 7,000,000 | 8,500,000 |
| Main | WBTC | 110 | 170 | 9 | 15 |
| Main | WETH | 14,500 | 18,500 | 1,250 | 1,600 |
| Main | frxUSD | 4,500,000 | 10,000,000 | 3,060,000 | 6,800,000 |
| Main | weETH | 800 | 1,000 | 0 | - |
| Main | wstETH | 2,150 | 2,800 | 0 | - |
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Bluechip | USDC | 2,500,000 | 3,000,000 | 2,910,000 | 3,500,000 |
| Bluechip | USDT | 2,500,000 | 3,000,000 | 3,130,000 | 3,750,000 |
| Bluechip | WBTC | 90 | 120 | 0 | - |
| Bluechip | WETH | 1,700 | 2,200 | 0 | - |
| Bluechip | cbBTC | 45 | 60 | 0 | - |
| Bluechip | wstETH | 1,800 | 2,400 | 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.
This round’s stablecoin sizing is driven primarily by the upcoming incentive programs on frxUSD and USDG:
The following stablecoins are left unchanged this round:
To support the larger frxUSD cap on Core/Main and the elevated Bluechip-to-Core borrowing demand observed after Round 3, the Core-to-Bluechip credit lines for frxUSD and USDT are scaled up. The USDT line, which reached full utilization following Round 3, is the most acute constraint. The frxUSD line is sized to scale roughly with the new 10M main cap so that Bluechip collateral borrowers can reach the new stable capacity.
| Origin | Target Spoke | Asset | Current Credit Line | Proposed Credit Line | Notes |
|---|---|---|---|---|---|
| Core Hub | Bluechip | USDT | 625,000 | 1,250,000 | Was 100% utilized following Round 3 |
| Core Hub | Bluechip | frxUSD | 300,000 | 1,000,000 | Scaled with 10M main cap |
No new USDG credit lines are opened this round, USDG remains on Core Hub for the time being before extending cross-hub exposure. The Core-to-Bluechip USDC, EURC, and GHO credit lines and the Core-to-Ethena-Ecosystem credit lines are unchanged, consistent with the exclusion of the Plus Hub and the absence of meaningful borrowing on those reserves.
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 incentive-driven demand develops.
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.
Aave Labs welcomes and acknowledged LlamaRisk’s recommendation. The proposed changes were successfully implemented through the Aave Security Council, see transaction: 0xd96b7cde44f2a9654cb6f435eaf11ff387e3217618c1ebf043aa5602c7f88fb2.
We are fully committed to a security-first approach to market growth and to ongoing support of risk parameter updates for this purpose.
LlamaRisk recommends a fifth round of Add and Draw Cap increases for Aave V4, focused on the Core Hub, bringing the total supply cap ceiling to approximately $208M. Following the execution of Round 4 cap increases, both frxUSD and USDG on Core/Main have filled to 100% Add Cap utilization under the live incentive program. This round delivers a second tranche on those two assets, doubling each from 10M to 20M, and applies $2–3M USD-equivalent bumps to the remaining high-utilization reserves on Core. Credit lines are unchanged this round.
The proposed adjustments add approximately $29M in additional supply cap capacity, all on the Core Hub. The bulk is the frxUSD/USDG step-up to 20M each; the remainder funds high-utilization Main collateral (cbBTC), the LINK reserve approaching the 80% threshold, and the smaller dedicated Forex and Gold spokes that have pressed against their caps. Round 4 caps still have headroom on Prime, and Plus remains in early bootstrap.
This round responds to two distinct utilization signals from the post-Round-4 data.
1. The frxUSD and USDG incentive programs filled their Round 4 caps. Both reserves are at 100% Add Cap utilization on Core/Main following the incentive rollout. To extend reward capacity through the next cycle without halting deposits, the Core/Main caps for both assets are raised in a single tranche to 20,000,000 each.
2. Other Core/Main and small-spoke reserves have approached their Round 4 caps. cbBTC on Core/Main sits at ~90% Add Cap utilization, the Core/Forex USDC and USDT pools are near 100%, and the Core/Gold XAUt pool is above 80%. These receive USD-equivalent bumps in the $1–3M range, sized to relieve the immediate constraint while staying conservative against observed DEX liquidity. LINK on Core/Main at 78% utilization receives a preemptive bump to avoid hitting the cap before the next monitoring cycle.
Following the execution of Round 4 caps, deposits have continued to absorb. Total deposits grew from $63,382,699 to $89,635,315 (+41%).
Source: LlamaRisk, May 26, 2026
The most notable inflows include USDG on the Core Main Spoke (+$7,998,710), frxUSD on the Core Main Spoke (+$5,500,339), WETH on the Core Main Spoke (+$4,404,531), cbBTC on the Core Main Spoke (+$1,957,647), weETH on the Core Etherfi Spoke (+$1,656,684).
The Core Hub now holds $76,610,109 in deposits (55% of Add Cap). The Prime Hub holds $12,771,955 (38% of Add Cap), while the Plus Hub remains at $253,250 (3%).
Source: LlamaRisk, May 26, 2026
6 reserves across the protocol have exceeded 80% Add Cap utilization:
Source: LlamaRisk, May 26, 2026
A further 5 reserves sit in the 50–80% range:
These are on trajectory to fill and the most pressing of them (LINK on Core/Main at 78%) benefits from a preemptive increase this round.
We target approximately $29M in additional supply cap capacity, all on the Core Hub. frxUSD and USDG on Core/Main are doubled in a single tranche to 20M each to support the ongoing incentive program. Other tight-cap reserves receive $1–3M USD-equivalent bumps sized to their pool scale: cbBTC on Core/Main (+~$2.65M), LINK on Core/Main (+~$2M preemptive), the Forex USDC, USDT and EURC pools (~3.75x each), and Gold XAUt (+~$1.1M).
Source: LlamaRisk, May 26, 2026
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Forex | EURC | 300,000 | 1,125,000 | 312,500 | 1,170,000 |
| Forex | USDC | 400,000 | 1,500,000 | 135,000 | 500,000 |
| Forex | USDT | 400,000 | 1,500,000 | 135,000 | 500,000 |
| Gold | USDC | 0 | - | 125,000 | 250,000 |
| Gold | USDG | 0 | - | 62,500 | 250,000 |
| Gold | USDT | 0 | - | 200,000 | 400,000 |
| Gold | XAUt | 250 | 500 | 0 | - |
| Gold | frxUSD | 0 | - | 100,000 | 250,000 |
| Main | LINK | 220,000 | 430,000 | 0 | - |
| Main | USDG | 10,000,000 | 20,000,000 | 6,800,000 | 13,600,000 |
| Main | cbBTC | 50 | 85 | 3 | 5 |
| Main | frxUSD | 10,000,000 | 20,000,000 | 6,800,000 | 13,600,000 |
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.
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.
Aave Labs welcomes and acknowledged LlamaRisk’s recommendation. The proposed changes were successfully implemented through the Aave Security Council, see transaction: 0x49d3b61942f9b1a9de655f0496c999651a7cffd30dc8f88830be2d774e97daf0.
We are fully committed to a security-first approach to market growth and to ongoing support of risk parameter updates for this purpose.
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.
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.
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.
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).
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%).
3 reserves across the protocol have exceeded 80% Add Cap utilization:
Further 10 reserves sit in the 50 to 80% range:
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.
| 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 | - |
| 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.
| 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.
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 |
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.
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.
Aave Labs welcomes and acknowledged LlamaRisk’s recommendation. The proposed changes were successfully implemented through the Aave Security Council, see transaction: 0x8470606e82667911b33fee9c93053e63445bfeeb947a193e2a4cf2b0e4d57f7b.
We are fully committed to a security-first approach to market growth and to ongoing support of risk parameter updates for this purpose.
LlamaRisk recommends a seventh round of Add and Draw Cap increases for Aave V4. Following the broad cap increases in Round 6, deposit growth has concentrated in a subset of collateral assets, particularly across the Core and Prime hubs. This proposal focuses on restoring headroom for those reserves to support continued organic growth.
The proposed adjustments add approximately $38M of additional Add Cap capacity, with roughly $29M allocated to Core and $9M to Prime. Total Add Cap capacity increases from approximately $343M to $381M. Draw Caps on affected assets are scaled proportionally to preserve existing Add/Draw ratios.
Following the previous round of cap increases, deposit growth has been concentrated in a small set of collateral assets, driving utilization materially higher across several reserves. This proposal increases supply caps on the assets seeing the strongest organic inflows to restore headroom for continued growth and prevent cap constraints from limiting new deposits and position formation. On the borrow side, corresponding borrow caps are increased as utilization rises alongside collateral growth.
Following the execution of Round 6 caps, deposits have continued to grow. Total deposits grew from $117,825,486 to $154,978,671 (+32%).
The most notable inflows include frxUSD on the Core Main Spoke (+$9,999,920), USDG on the Core Main Spoke (+$9,925,222), WBTC on the Core Main Spoke (+$6,104,836), WBTC on the Prime Bluechip Spoke (+$3,331,940), wstETH on the Core Main Spoke (+$1,928,832).
The Core Hub now holds $135,740,922 in deposits (54% of Add Cap). The Prime Hub holds $18,812,522 (30% of Add Cap), while the Plus Hub remains at $425,227 (1%).
Three reserves across the protocol have exceeded 80% Add Cap utilization:
A further 7 reserves sit in the 50 to 80% range:
On the borrow side, several draw lines have reached or are near 100% draw utilization: USDT on Gold (99%), USDG and frxUSD on Forex (100%), and are addressed below.
Note: here the draw cap is a per-spoke borrow limit on a hub’s own inventory, so the Gold and Forex lines are intra-Core draw caps. Only the cross-hub lines (Bluechip, Ethena Ecosystem) are credit lines in the strict sense.
Round 7 targets approximately $38M in additional Add Cap capacity (Core +$29M, Prime +$9M), led by the WBTC and wstETH collateral increases. USDG and frxUSD on Core Main are held at their current 30M caps.
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Etherfi | WETH | 0 | - | 8,500 | 13,000 |
| Etherfi | weETH | 11,000 | 14,000 | 0 | - |
| Forex | USDG | 0 | - | 90,000 | 250,000 |
| Forex | frxUSD | 0 | - | 62,500 | 250,000 |
| Gold | USDG | 0 | - | 500,000 | 1,000,000 |
| Gold | USDT | 0 | - | 800,000 | 2,000,000 |
| Gold | XAUt | 1,000 | 1,800 | 0 | - |
| Gold | frxUSD | 0 | - | 500,000 | 1,000,000 |
| Main | USDT | 12,500,000 | 15,000,000 | 12,500,000 | 15,000,000 |
| Main | WBTC | 240 | 450 | 21 | 39 |
| Main | weETH | 1,500 | 2,200 | 0 | - |
| Main | wstETH | 4,400 | 6,000 | 0 | - |
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Bluechip | WBTC | 185 | 280 | 0 | - |
| Bluechip | wstETH | 4,100 | 5,500 | 0 | - |
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. Prime and Plus Hub utilization will be reassessed as deposits grow into their current ceilings.
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.
Aave Labs welcomes and acknowledged LlamaRisk’s recommendation. The proposed changes were successfully implemented through the Aave Security Council, see transaction: 0xf20868cc1249761a69ce25da1a2db9895e5b8369758f0ee15286c4aeb9cf3488.
We are fully committed to a security-first approach to market growth and to ongoing support of risk parameter updates for this purpose.
LlamaRisk recommends an eighth round of Add Cap and Draw Cap increases for Aave V4. Deposits have continued to grow, reaching approximately $185M in total, with inflows remaining concentrated in BTC and ETH collateral on the Core Hub. Notably, WBTC on Core Main has already refilled the capacity added in the previous round and has returned to full Add Cap utilization, reflecting continued depositor demand. Round 8 expands capacity where utilization indicates additional headroom is warranted.
The proposed adjustments add approximately $75M in additional Add Cap capacity: Core $64M and Prime $11M. The total Add Cap ceiling moves from approximately $392M to $467M. Draw Caps on affected assets are scaled proportionally to preserve existing Add/Draw ratios.
Since the previous round, deposit growth has remained concentrated in a small number of Core Hub collateral assets. On the borrow side, several credit lines have once again reached or approached their draw limits, reflecting sustained borrowing demand. Round 8 increases the relevant Add Caps and Draw Caps to accommodate continued growth while maintaining sufficient headroom for new deposits and borrowing activity.
Following the execution of Round 7 caps, deposits have continued to grow. Total deposits grew from $154,978,671 to $184,672,374 (+19%).
The most notable inflows include WBTC on the Core Main Spoke (+$15,553,582), wstETH on the Core Main Spoke (+$2,747,135), AAVE on the Core Main Spoke (+$2,172,901), WBTC on the Prime Bluechip Spoke (+$2,050,037), USDT on the Core Main Spoke (+$1,739,035).
The Core Hub now holds $163,122,571 in deposits (57% of Add Cap). The Prime Hub holds $21,136,122 (28% of Add Cap), while the Plus Hub remains at $413,681 (1%).
3 reserves across the protocol have exceeded 80% Add Cap utilization:
A further 4 reserves sit in the 50 to 80% range:
On the borrow side, several draw lines have returned to or remain at 100% draw utilization. frxUSD and USDG on Forex (both back at 100% a week after the Round 7 bump), GHO on Forex (96%), and the two cross-hub frxUSD credit lines (Bluechip and Ethena Ecosystem, both 100%) are addressed below.
Round 8 targets approximately $75M in additional Add Cap capacity (Core $64M, Prime $11M), led by the USDG/frxUSD 10M extensions and the WBTC increase.
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Forex | GHO | 0 | - | 12,500 | 50,000 |
| Forex | USDG | 0 | - | 250,000 | 500,000 |
| Forex | frxUSD | 0 | - | 250,000 | 500,000 |
| Main | AAVE | 67,000 | 100,000 | 0 | - |
| Main | USDC | 10,000,000 | 12,500,000 | 10,000,000 | 12,500,000 |
| Main | USDG | 30,000,000 | 40,000,000 | 20,400,000 | 27,200,000 |
| Main | USDT | 15,000,000 | 20,000,000 | 15,000,000 | 20,000,000 |
| Main | WBTC | 450 | 850 | 39 | 74 |
| Main | cbBTC | 115 | 160 | 7 | 10 |
| Main | frxUSD | 30,000,000 | 40,000,000 | 20,400,000 | 27,200,000 |
| Main | wstETH | 6,000 | 8,000 | 0 | - |
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Bluechip | WBTC | 280 | 400 | 0 | - |
| Bluechip | cbBTC | 90 | 130 | 0 | - |
Two spokes borrow Core frxUSD liquidity while posting collateral on a different hub. The Bluechip and Ethena Ecosystem spokes draw frxUSD from the Core Hub in the absence of local supply. Both frxUSD credit lines are currently at 100% draw cap utilization. We propose a measured increase to these draw caps to accommodate demand while maintaining credit line exposure at a controlled level relative to the available native frxUSD supply.
| Spoke | Asset | Current Draw Cap | Current Draw Util | Proposed Draw Cap |
|---|---|---|---|---|
| Bluechip | frxUSD | 3,000,000 | 100% | 4,000,000 |
| Ethena Ecosystem | frxUSD | 200,000 | 100% | 300,000 |
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. Prime and Plus Hub utilization will be reassessed as deposits grow into their current ceilings.
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.
Aave Labs welcomes and acknowledged LlamaRisk’s recommendation. The proposed changes were successfully implemented through the Aave Security Council, see transaction: 0xc7db4d5625bb600b317884b2fbc0d5848158074620b5518d61fcab7ee2f821fa.
We are fully committed to a security-first approach to market growth and to ongoing support of risk parameter updates for this purpose.
LlamaRisk recommends a ninth round of Add Cap and Draw Cap adjustments for Aave V4. Deposits have continued to grow, reaching approximately $240M in total. Growth was led by the PT-USDG-24SEP2026 listing on the new Global Dollar Hub, followed by USDG and WBTC deposits on Core Hub. On the borrow side, several frxUSD credit lines have approached or reached their draw limits. Round 9 expands capacity where utilization indicates additional headroom is warranted.
The proposed adjustments add approximately $89M in additional Add Cap capacity: Core $60M, Prime $5M, Plus $9M, and Global Dollar $15M. Total Add Cap ceiling moves from approximately $491M to $580M. Draw Caps on affected assets are scaled proportionally to preserve existing Add/Draw ratios.
Since the previous round, deposits have increased by approximately 30%, with growth led by the new PT-USDG listing, followed by USDG and WBTC. cbBTC and WBTC have once again surpassed 50% utilization following their Round 8 cap increases, reflecting continued BTC inflows. Round 9 raises the relevant Add Caps and Draw Caps to support ongoing deposit and borrowing demand while preserving adequate headroom for further growth.
Following the execution of Round 8 caps, deposits have continued to grow. Total deposits grew from $184,672,374 to $239,914,421 (+30%).
The most notable inflows include PT-USDG-24SEP2026 on the Global Dollar USDG Pendle Spoke (new) (+$14,818,953), USDG on the Core Main Spoke (+$9,573,774), WBTC on the Core Main Spoke (+$5,277,253), cbBTC on the Core Main Spoke (+$4,497,616), and sUSDe on the Plus Ethena Ecosystem Spoke (+$3,509,160).
Total deposits across all four hubs stand at $239,914,421. The Core Hub holds $190,257,666 (56% of Add Cap), the Prime Hub holds $25,024,515 (31% of Add Cap), the Plus Hub holds $9,813,287 (34% of Add Cap), and the Global Dollar Hub holds $14,818,953 (36% of Add Cap).
6 reserves across the protocol have exceeded 80% Add Cap utilization:
A further 8 reserves sit in the 50 to 80% range:
On the borrow side, several frxUSD draw lines have reached or exceeded their ceilings: Ethena Ecosystem at 100%, Bluechip at 88%, and Forex at 86%.
Round 9 targets approximately $89M in additional Add Cap capacity (Core $60M, Prime $5M, Plus $9M, and Global Dollar $15M), with draw-side relief on three frxUSD borrow lines.
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Etherfi | weETH | 14,000 | 18,000 | 0 | - |
| Forex | frxUSD | 0 | - | 500,000 | 1,000,000 |
| Gold | XAUt | 1,800 | 2,500 | 0 | - |
| Main | LINK | 610,000 | 750,000 | 0 | - |
| Main | USDG | 40,000,000 | 50,000,000 | 27,200,000 | - |
| Main | WBTC | 850 | 1,150 | 74 | 100 |
| Main | cbBTC | 160 | 220 | 10 | 14 |
| Main | frxUSD | 40,000,000 | 50,000,000 | 27,200,000 | 34,000,000 |
| Main | weETH | 2,200 | 4,000 | 0 | - |
| Main | wstETH | 8,000 | 10,000 | 0 | - |
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Bluechip | wstETH | 5,500 | 7,000 | 0 | - |
| Bluechip | USDC | 12,500,000 | 12,590,000 | 14,590,000 | - |
| Bluechip | USDT | 12,500,000 | 13,125,000 | 15,625,000 | - |
| Bluechip | GHO | 7,500,000 | 8,440,000 | 8,440,000 | - |
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| Ethena Ecosystem | USDC | 3,000,000 | 6,000,000 | 3,750,000 | 6,375,000 |
| Ethena Ecosystem | USDT | 3,000,000 | 6,000,000 | 3,750,000 | 6,375,000 |
| Ethena Ecosystem | sUSDe | 4,060,000 | 6,000,000 | 0 | - |
| Ethena Correlated | USDe | 5,000,000 | 5,200,000 | 5,200,000 | - |
| Ethena Ecosystem | GHO | 3,000,000 | 3,450,000 | 3,450,000 | - |
| Spoke | Asset | Current Add Cap | Proposed Add Cap | Current Draw Cap | Proposed Draw Cap |
|---|---|---|---|---|---|
| USDG Pendle | PT-USDG-24SEP2026 | 15,000,000 | 30,000,000 | 0 | - |
Two spokes borrow Core frxUSD liquidity using collateral on another hub. The Bluechip and Ethena Ecosystem spokes draw frxUSD from the Core Hub when local supply is insufficient. The Ethena Ecosystem credit line is currently fully utilized. We propose a measured increase to draw caps to meet demand while keeping exposure controlled relative to available native frxUSD supply.
Additionally, we propose reducing the USDG credit line to the Global Dollar Hub to lower borrow utilization and maintain a conservative level of exposure relative to the available native USDG supply.
| Spoke | Asset | Current Draw Cap | Current Draw Util | Proposed Draw Cap |
|---|---|---|---|---|
| Bluechip | frxUSD | 4,000,000 | 88% | 5,000,000 |
| Ethena Ecosystem | frxUSD | 300,000 | 100% | 500,000 |
| USDG Pendle | USDG | 30,000,000 | 46% | 15,000,000 |
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. Core, Prime, and Plus Hub utilization will be reassessed as deposits grow into their current ceilings.
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.
