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 MegaETH:
- Increase supply cap for USDe from 200,000,000 to 400,000,000.
Aave V3 Core:
- Reduce supply cap for USDT from 6,000,000,000 to 2,600,000,000.
- Reduce borrow cap for USDT from 5,400,000,000 to 2,340,000,000.
- Reduce supply cap for WETH from 3,400,000 to 2,700,000.
- Reduce borrow cap for WETH from 3,060,000 to 2,400,000.
- Reduce supply cap for USDC from 5,000,000,000 to 2,500,000,000.
- Reduce borrow cap for USDC from 4,500,000,000 to 2,250,000,000.
- Reduce supply cap for weETH from 2,200,000 to 1,600,000.
- Reduce supply cap for wstETH from 1,400,000 to 850,000.
- Reduce supply cap for cbBTC from 25,000 to 16,500.
- Reduce supply cap for WBTC from 42,000 to 39,000.
- Reduce supply cap for sUSDe from 900,000,000 to 225,000,000.
- Reduce supply cap for PYUSD from 300,000,000 to 45,000,000.
- Reduce borrow cap for PYUSD from 270,000,000 to 40,000,000.
- Reduce supply cap for USDe from 400,000,000 to 325,000,000.
- Reduce borrow cap for USDe from 360,000,000 to 290,000,000.
- Reduce supply cap for USDtb from 300,000,000 to 250,000,000.
Aave V3 Plasma:
- Reduce supply cap for USDT0 from 3,000,000,000 to 950,000,000.
- Reduce borrow cap for USDT0 from 2,700,000,000 to 855,000,000.
- Reduce supply cap for USDe from 1,200,000,000 to 475,000,000.
- Reduce borrow cap for USDe from 600,000,000 to 425,000,000.
- Reduce supply cap for sUSDe from 1,000,000,000 to 300,000,000.
Aave V3 Mantle:
- Reduce supply cap for USDT0 from 450,000,000 to 250,000,000.
- Reduce borrow cap for USDT0 from 405,000,000 to 225,000,000.
Aave V3 Arbitrum:
- Reduce supply cap for USDC from 300,000,000 to 250,000,000.
- Reduce borrow cap for USDC from 270,000,000 to 225,000,000.
Aave V3 Base:
- Reduce supply cap for cbBTC from 3,500 to 3,200.
Aave V3 Polygon:
- Reduce supply cap for WBTC from 2,200 to 1,400.
Aave V3 Avalanche:
- Reduce supply cap for BTC.b from 3,000 to 2,600.
Aave V3 Gnosis:
- Reduce borrow cap for GNO from 20,000 to 1.
USDe (Aave V3 MegaETH)
USDe has reached 100.0% supply cap utilization (199,999,999 / 200,000,000) on the Aave V3 MegaETH instance.
Supply Distribution
Source: LlamaRisk, May 06, 2026
The top twenty USDe supply positions are uniformly USDe collateral against USDm debt in E-Mode. Aggregate USDm debt across this cohort is approximately 178M against 199M of USDe collateral, with health factors between 1.03 and 1.16 (median 1.04). Both collateral and debt are dollar-pegged stablecoins. The top three positions account for roughly 72 percent of top-twenty supply.
Recommendation
Given the stablecoin-pair loop structure, the dollar-peg correlation between USDe and USDm, and full saturation of the existing 200M cap, we recommend raising the supply cap for USDe on Aave V3 MegaETH from 200,000,000 to 400,000,000. The borrow cap remains unchanged at 40,000,000.
Cap Reductions
The following reserves have material idle headroom relative to current demand, and the proposed caps tighten that buffer.
On Aave V3 Gnosis, GNO has 11,181 borrowed against a 20,000 borrow cap (55.9% utilization). The proposed borrow cap of 1 prevents new borrows while existing positions can repay their GNO debt.
On Aave V3 Core, USDT has 1,954,186,188 deposited against a 6,000,000,000 supply cap (32.6% utilization). The proposed supply cap of 2,600,000,000 sits at 1.33x current deposits. On Aave V3 Core, USDT has 1,807,309,210 borrowed against a 5,400,000,000 borrow cap (33.5% utilization). The proposed borrow cap of 2,340,000,000 sits at 1.29x current outstanding.
On Aave V3 Core, WETH has 2,028,655 deposited against a 3,400,000 supply cap (59.7% utilization). The proposed supply cap of 2,700,000 sits at 1.33x current deposits. On Aave V3 Core, WETH has 1,990,715 borrowed against a 3,060,000 borrow cap (65.1% utilization). The proposed borrow cap of 2,400,000 sits at 1.21x current outstanding.
On Aave V3 Core, USDC has 1,921,579,904 deposited against a 5,000,000,000 supply cap (38.4% utilization). The proposed supply cap of 2,500,000,000 sits at 1.30x current deposits. On Aave V3 Core, USDC has 1,771,746,956 borrowed against a 4,500,000,000 borrow cap (39.4% utilization). The proposed borrow cap of 2,250,000,000 sits at 1.27x current outstanding.
On Aave V3 Core, weETH has 1,238,750 deposited against a 2,200,000 supply cap (56.3% utilization). The proposed supply cap of 1,600,000 sits at 1.29x current deposits.
On Aave V3 Plasma, USDT0 has 739,808,550 deposited against a 3,000,000,000 supply cap (24.7% utilization). The proposed supply cap of 950,000,000 sits at 1.28x current deposits. On Aave V3 Plasma, USDT0 has 683,127,207 borrowed against a 2,700,000,000 borrow cap (25.3% utilization). The proposed borrow cap of 855,000,000 sits at 1.25x current outstanding.
On Aave V3 Core, wstETH has 669,357 deposited against a 1,400,000 supply cap (47.8% utilization). The proposed supply cap of 850,000 sits at 1.27x current deposits.
On Aave V3 Core, cbBTC has 12,463 deposited against a 25,000 supply cap (49.9% utilization). The proposed supply cap of 16,500 sits at 1.32x current deposits.
On Aave V3 Core, WBTC has 29,476 deposited against a 42,000 supply cap (70.2% utilization). The proposed supply cap of 39,000 sits at 1.32x current deposits.
On Aave V3 Plasma, USDe has 364,468,173 deposited against a 1,200,000,000 supply cap (30.4% utilization). The proposed supply cap of 475,000,000 sits at 1.30x current deposits. On Aave V3 Plasma, USDe has 234,017,534 borrowed against a 600,000,000 borrow cap (39.0% utilization). The proposed borrow cap of 425,000,000 sits at 1.82x current outstanding.
On Aave V3 Plasma, sUSDe has 227,883,712 deposited against a 1,000,000,000 supply cap (22.8% utilization). The proposed supply cap of 300,000,000 sits at 1.32x current deposits.
On Aave V3 Core, sUSDe has 180,213,599 deposited against a 900,000,000 supply cap (20.0% utilization). The proposed supply cap of 225,000,000 sits at 1.25x current deposits.
On Aave V3 Core, PYUSD has 25,136,195 deposited against a 300,000,000 supply cap (8.4% utilization). The proposed supply cap of 45,000,000 sits at 1.79x current deposits. On Aave V3 Core, PYUSD has 19,112,874 borrowed against a 270,000,000 borrow cap (7.1% utilization). The proposed borrow cap of 40,000,000 sits at 2.09x current outstanding.
On Aave V3 Mantle, USDT0 has 187,325,062 deposited against a 450,000,000 supply cap (41.6% utilization). The proposed supply cap of 250,000,000 sits at 1.33x current deposits. On Aave V3 Mantle, USDT0 has 148,457,959 borrowed against a 405,000,000 borrow cap (36.7% utilization). The proposed borrow cap of 225,000,000 sits at 1.52x current outstanding.
On Aave V3 Core, USDe has 219,043,139 deposited against a 400,000,000 supply cap (54.8% utilization). The proposed supply cap of 325,000,000 sits at 1.48x current deposits. On Aave V3 Core, USDe has 189,873,020 borrowed against a 360,000,000 borrow cap (52.7% utilization). The proposed borrow cap of 290,000,000 sits at 1.53x current outstanding.
On Aave V3 Arbitrum, USDC has 166,586,843 deposited against a 300,000,000 supply cap (55.5% utilization). The proposed supply cap of 250,000,000 sits at 1.50x current deposits. On Aave V3 Arbitrum, USDC has 148,405,414 borrowed against a 270,000,000 borrow cap (55.0% utilization). The proposed borrow cap of 225,000,000 sits at 1.52x current outstanding.
On Aave V3 Core, USDtb has 172,065,553 deposited against a 300,000,000 supply cap (57.4% utilization). The proposed supply cap of 250,000,000 sits at 1.45x current deposits.
On Aave V3 Base, cbBTC has 2,061 deposited against a 3,500 supply cap (58.9% utilization). The proposed supply cap of 3,200 sits at 1.55x current deposits.
On Aave V3 Polygon, WBTC has 848 deposited against a 2,200 supply cap (38.5% utilization). The proposed supply cap of 1,400 sits at 1.65x current deposits.
On Aave V3 Avalanche, BTC.b has 1,689 deposited against a 3,000 supply cap (56.3% utilization). The proposed supply cap of 2,600 sits at 1.54x current deposits.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Gnosis | GNO | — | — | 20,000 | 1 |
| Aave V3 MegaETH | USDe | 200,000,000 | 400,000,000 | — | — |
| Aave V3 Core | USDT | 6,000,000,000 | 2,600,000,000 | 5,400,000,000 | 2,340,000,000 |
| Aave V3 Core | WETH | 3,400,000 | 2,700,000 | 3,060,000 | 2,400,000 |
| Aave V3 Core | USDC | 5,000,000,000 | 2,500,000,000 | 4,500,000,000 | 2,250,000,000 |
| Aave V3 Core | weETH | 2,200,000 | 1,600,000 | — | — |
| Aave V3 Plasma | USDT0 | 3,000,000,000 | 950,000,000 | 2,700,000,000 | 855,000,000 |
| Aave V3 Core | wstETH | 1,400,000 | 850,000 | — | — |
| Aave V3 Core | cbBTC | 25,000 | 16,500 | — | — |
| Aave V3 Core | WBTC | 42,000 | 39,000 | — | — |
| Aave V3 Plasma | USDe | 1,200,000,000 | 475,000,000 | 600,000,000 | 425,000,000 |
| Aave V3 Plasma | sUSDe | 1,000,000,000 | 300,000,000 | — | — |
| Aave V3 Core | sUSDe | 900,000,000 | 225,000,000 | — | — |
| Aave V3 Core | PYUSD | 300,000,000 | 45,000,000 | 270,000,000 | 40,000,000 |
| Aave V3 Mantle | USDT0 | 450,000,000 | 250,000,000 | 405,000,000 | 225,000,000 |
| Aave V3 Core | USDe | 400,000,000 | 325,000,000 | 360,000,000 | 290,000,000 |
| Aave V3 Arbitrum | USDC | 300,000,000 | 250,000,000 | 270,000,000 | 225,000,000 |
| Aave V3 Core | USDtb | 300,000,000 | 250,000,000 | — | — |
| Aave V3 Base | cbBTC | 3,500 | 3,200 | — | — |
| Aave V3 Polygon | WBTC | 2,200 | 1,400 | — | — |
| Aave V3 Avalanche | BTC.b | 3,000 | 2,600 | — | — |
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.