Summary
LlamaRisk recommends the following parameter changes based on user behavior, on-chain liquidity, and position health observed in the latest review of Aave V3 reserves.
Aave V3 Core:
- Increase borrow cap for USDe from 571,000,000 to 700,000,000.
USDe (Aave V3 Core)
USDe has reached 97.2% borrow cap utilization (554,820,052 / 571,000,000) on the Aave V3 Core instance.
Borrow Distribution
Source: LlamaRisk, July 31, 2026
The top twenty USDe borrowers run health factors between 1.00 and 2.16 with a median of 1.13, and all twenty carry outstanding debt. Collateral behind those positions is led by sUSDe, with WETH second, alongside cbBTC, weETH, and wstETH in a minority of positions, so health factor stability in the cohort tracks the sUSDe peg alongside the ETH and BTC prices.
Recommendation
We recommend raising the borrow cap from 571,000,000 to 700,000,000 on Aave V3 Core. The reserve sits at 97.2% borrow cap utilization and the proposed cap lands at approximately 79.3% post-change utilization. The supply cap is held unchanged at 902,000,000.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | USDe | 902,000,000 | - | 571,000,000 | 700,000,000 |
Next Steps
We will move forward and implement these updates via the Risk Steward process.
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.