[ARFC] Deploy Aave v3 on Mantle

Summary

LlamaRisk is aligned with the caps and parameters presented by ChaosLabs. Below, we illustrate the current state of liquidity on the network for the proposed assets for the Aave deployment, namely USDT0, WMNT, USDC, USDe, GHO, fBTC, sUSDe, syrupUSDT, WETH, and wrsETH.

Additionally, we highlight that the liquidity bootstrapping efforts are currently in progress in order to bring the liquidity of certain asset pairs up to a level that can support these proposed caps. We will continue monitoring the liquidity growth and coordinate with Mantle’s team to ensure that sufficient liquidity targets are met to support safe deployment and scaling of the instance.

Liquidity

The heuristics that we use to determine if network liquidity is adequate to support initial supply and borrow caps are based on the following approach:

  • For assets that will be used as collateral against stablecoins, we observe the liquidity value within a 5-7.5% price impact when selling into stablecoins, recommending that liquidity is distributed between different venues rather than a single liquidity pool.
  • For assets that will be used within correlated E-Modes, the liquidity should be in the correlated pairs. The liquidation risk for these collateral-borrow pairs is greatly lower, therefore the requirements are less strict. In the context of the Mantle deployment, this applies to WETH/wrsETH, sUSDe-Stablecoins, and syrupUSDT-stablecoins.
Assets Aggregated DEX liquidity within LBs USD Value Price Impact Proposed Supply Cap
USDT0 990 000 $990 000 6.68% *50 000 000
USDC 2 800 000 $2 800 000 5.59% 10 000 000
USDe 6 500 000 $6 500 000 5.94% 20 000 000
GHO None None - *20 000 000
fBTC 10 $955,727 6.92% 50
sUSDe 4 400 000 $5 348 285 3.63% 20 000 000
syrupUSDT None None - *70 000 000
WETH 295 $927 476 4.95% *30 000
wrsETH None None - *18,000
WMNT 800 000 $754 527 8.26% 5 000 000

as of January 16th, 2026

*Note: Recommended supply cap values are well below available swap liquidity; liquidity for these assets is expected to be bootstrapped by Mantle and external entities before the market instance is deployed.

Additional Context

Following our discussions with the Mantle and TokenLogic teams, additional context is provided in this section regarding caps and liquidity plans. Assets that have a DEX liquidity that is significantly below what would reasonably support caps are intended to be supported by a number of stakeholder bootstrapping efforts. The ‘Aave effect’ of liquidity flowing to a network following an Aave deployment is also a factor we considered for the initial phase of this deployment and liquidity recommendations.

Pools

The most significant pairs for each asset are presented below. This presents liquidity depth and range across different markets to support market growth and liquidations.

USDT0

Pairs TVL DEX
USDT / USDT0 $4.40M Agni Finance
$4,512,708 Merchant Moe

Approximate Total = $8.9M

USDC

Pairs TVL DEX
USDC / USDe $1.68M Agni Finance
USDe / USDC $2,142,660 Merchant Moe
USDC / USDT $72,382 Merchant Moe

Approximate Total = $3.90M

USDe

Pairs TVL DEX
cmETH / USDe $12,984,283 Merchant Moe
sUSDe / USDe $8,398,654 Merchant Moe
USDe / USDT $6,003,178 Merchant Moe
AUSD / USDe $5,333,708 Merchant Moe
USDe / MNT $4,954,181 Merchant Moe
USDe / USDC $2,141,721 Merchant Moe
USDe / cmETH $9.24M Agni Finance
USDe / WMNT $2.30M Agni Finance
sUSDe / USDe $4.16M Agni Finance
USDC / USDe $1.68M Agni Finance
USDT / USDe $1.49M Agni Finance
USDe / COOK $906.56K Agni Finance

Approximate Total = $58.69M

fBTC

Pairs TVL DEX
FBTC / cmETH $7,848,429 Merchant Moe
FBTC / WBTC $4,136,368 Merchant Moe
FBTC / mETH $5,700 Merchant Moe
FBTC / cmETH $10.02M Agni Finance
FBTC / WBTC $2.38M Agni Finance

Approximate Total = $24.39M

sUSDe

Pairs TVL DEX
sUSDe / USDe $8,402,771 Merchant Moe
sUSDe / USDe $4.16M Agni Finance

Approximate Total = $12.56M

WETH

Pairs TVL DEX
cmETH / WETH $1,788,290 Merchant Moe
cmETH / WETH $703,111 Merchant Moe
mETH / WETH $500,389 Merchant Moe
MNT / WETH $137,735 Merchant Moe
WETH / cmETH $1.76M Agni Finance
mETH / WETH $5.84K Agni Finance

Approximate Total = $4.90M

WMNT

Pairs TVL DEX
USDe / MNT $4,954,181 Merchant Moe
MNT / USDT $1,821,470 Merchant Moe
MOE / MNT $496,922 Merchant Moe
WETH / MNT $138,167 Merchant Moe
USDe / MNT $2.27M Agni Finance

Approximate Total = $9.68M

Parameter Recommendations

Parameters have been agreed jointly with @ChaosLabs.

Disclaimer

This review was independently prepared by LlamaRisk, a community-led non-profit decentralized organization funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any 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.