Summary
LlamaRisk recommends the following parameter changes based on user behavior, on-chain liquidity, and position health observed in the latest review of Aave V4 reserves.
Aave V4 Ethereum:
- Increase the add cap for weETH on the Core Hub Main Spoke from 20K to 22K.
Aave V4 Base:
- Increase the add cap for GOOGLc on the Equities Hub MAG7 Spoke from 15K to 22K.
weETH (Core Hub)
On the Aave V4 Ethereum Core Hub Main Spoke, 19,533 weETH is added against an add cap of 20K (97.7%). Supply on the spoke rose from approximately 14,300 weETH to the 20K cap on October 28, 2026, and has stayed close to the cap since the spoke was unfrozen on October 30. weETH is not borrowable on the Core Hub.
| Spoke | Added | Add Cap | Add Cap Utilization |
|---|---|---|---|
| Main | 19,533 | 20,000 | 97.7% |
Source: LlamaRisk, November 1, 2026
weETH Supply Distribution
Source: LlamaRisk, November 1, 2026
weETH supply on the Main Spoke is concentrated, with the largest position holding approximately 24% of the reserve, the top three approximately 60%, and the top twenty approximately 99%. Nineteen of the top twenty borrow stablecoins, mainly USDG and to a lesser extent USDC and frxUSD, against weETH, in some cases alongside wstETH and WETH collateral, at health factors between 1.32 and 29.17 with a median of 1.80, so HF in the cohort tracks the ETH price.
Recommendation
The proposed add cap of 22K lands at approximately 88.8% post-change add cap utilization.
GOOGLc (Base Equities Hub)
On the Aave V4 Base Equities Hub MAG7 Spoke, 12,993 GOOGLc (approximately USD 3.7M) is added against an add cap of 15K (86.6%). Supply has grown from approximately 1,430 GOOGLc on October 2, 2026, across 189 supplying positions. GOOGLc is not borrowable on the Equities Hub.
| Spoke | Added | Add Cap | Add Cap Utilization |
|---|---|---|---|
| MAG7 | 12,993 | 15,000 | 86.6% |
Source: LlamaRisk, November 1, 2026
GOOGLc Supply Distribution
Source: LlamaRisk, November 1, 2026
GOOGLc supply on the MAG7 Spoke is concentrated, with the largest position holding approximately 29% of the reserve, the top three approximately 67%, and the top twenty approximately 96%. Sixteen of the top twenty borrow USDC against GOOGLc, in some cases alongside other tokenized equities, at health factors between 1.04 and 1.89 with a median of 1.46, so HF in the cohort tracks the GOOGLc price.
Recommendation
The proposed add cap of 22K, an increase of approximately USD 2.0M, lands at approximately 59.1% post-change add cap utilization.
Specification
Add Caps
| Hub | Spoke | Asset | Current Add Cap | Recommended Add Cap |
|---|---|---|---|---|
| Ethereum Core | Main | weETH | 20,000 | 22,000 |
| Base Equities | MAG7 | GOOGLc | 15,000 | 22,000 |
Next Steps
We will move forward and implement these updates via the Risk Steward process. These recommendations replace the weETH and GOOGLc add cap increases recommended on October 29, 2026, which have not been executed. The implemented changes can be reviewed on the LlamaRisk Risk Stewards Dashboard.
Disclosure
This review was independently prepared by LlamaRisk, a DeFi risk service provider 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.