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 supply cap for weETH from 1,350,000 to 1,500,000.
- Reduce supply cap for sUSDe from 450,000,000 to 250,000,000.
- Reduce supply cap for PT-srUSDe-22OCT2026 from 75,000,000 to 10,000,000.
Aave V3 Plasma:
- Increase supply cap for USDe from 450,000,000 to 550,000,000 and reduce borrow cap from 335,000,000 to 100,000,000.
- Reduce supply cap for syrupUSDT from 150,000,000 to 100,000,000.
- Reduce supply cap for PT-sUSDE-22OCT2026 from 200,000,000 to 100,000,000.
- Decrease Slope1 for USDe from 1.00% to 0.25%.
Aave V3 Mantle:
- Increase supply cap for sUSDe from 75,000,000 to 100,000,000.
- Decrease Slope1 for USDe from 1.00% to 0.25%.
Aave V3 Monad:
- Reduce supply cap for WETH from 20,000 to 10,000 and borrow cap from 12,400 to 7,500.
- Decrease Slope1 for USDe from 1.00% to 0.25%.
Aave V3 Base:
- Reduce supply cap for WETH from 169,000 to 125,000 and borrow cap from 143,000 to 100,000.
- Reduce supply cap for cbETH from 75,000 to 50,000.
Aave V3 MegaETH:
- Reduce supply cap for stcUSD from 40,000,000 to 15,000,000.
weETH (Aave V3 Core)
weETH sits at 98.0% supply cap utilization.
Supply Distribution
Source: LlamaRisk, September 15, 2026
The top twenty suppliers have health factors between 1.00 and 3.67, with a median of 1.06, and all twenty carry outstanding debt. Fifteen borrow WETH against weETH collateral, accounting for 86.7% of the debt held by these suppliers, and fourteen of them are in the ETH-correlated E-Mode categories, so the health factor of these positions tracks the weETH exchange rate against ETH. Six borrow USDC or USDT outside E-Mode, at health factors of 1.31 and above. Supply is concentrated, with the largest position holding 30.5% of the reserve and the top five holding 71.4%.
Recommendation
The proposed cap of 1.5M is approximately 1.13x the current outstanding supply, resulting in approximately 88.2% post-change cap utilization.
USDe (Aave V3 Plasma)
USDe sits at 100.0% supply cap utilization.
Supply Distribution
Source: LlamaRisk, September 15, 2026
The top eleven suppliers have health factors between 1.01 and 1.05, with a median of 1.02, with nine carrying outstanding debt and two supplying on a spot basis. All nine borrow USDT0 against USDe collateral, and six also hold sUSDe. Since USDe is priced at par with USDT, these positions have very low liquidation risk. Supply is concentrated, with the largest position holding 66.6% of the reserve and the top five holding 97.4%.
Recommendation
The proposed cap of 550M is approximately 1.22x the current outstanding supply, resulting in approximately 81.8% post-change cap utilization. The borrow cap moves from 335M to 100M, approximately 1.71x current outstanding borrows, landing at approximately 58.4% post-change borrow cap utilization.
sUSDe (Aave V3 Mantle)
sUSDe sits at 86.6% supply cap utilization.
Supply Distribution
Source: LlamaRisk, September 15, 2026
The top nine suppliers have health factors between 1.01 and 2.47, with a median of 1.03, and all nine carry outstanding debt. USDT0 accounts for 96.1% of the debt held by these suppliers, borrowed by three of them, while seven borrow smaller amounts of USDC and one borrows GHO and two also hold USDe alongside sUSDe. Both legs are dollar-denominated, so the health factor tracks the sUSDe exchange rate against the borrowed stablecoins. Supply is concentrated, with the largest position holding 62.9% of the reserve and the top five holding 99.7%.
Recommendation
The proposed cap of 100M is approximately 1.54x the current outstanding supply, resulting in approximately 64.9% post-change cap utilization.
Cap Reductions
- sUSDe on Aave V3 Core sits at 40.8% supply cap utilization. The proposed cap of 250M is approximately 1.36x current outstanding supply, landing at approximately 73.5% post-change cap utilization.
- PT-srUSDe-22OCT2026 on Aave V3 Core sits at 7.5% supply cap utilization. The proposed cap of 10M is approximately 1.77x current outstanding supply, landing at approximately 56.4% post-change cap utilization.
- syrupUSDT on Aave V3 Plasma sits at 43.7% supply cap utilization. The proposed cap of 100M is approximately 1.53x current outstanding supply, landing at approximately 65.5% post-change cap utilization.
- PT-sUSDE-22OCT2026 on Aave V3 Plasma sits at 33.7% supply cap utilization. The proposed cap of 100M is approximately 1.49x current outstanding supply, landing at approximately 67.3% post-change cap utilization.
- WETH on Aave V3 Monad sits at 23.6% supply cap utilization. The proposed cap of 10,000 is approximately 2.12x current outstanding supply, landing at approximately 47.2% post-change cap utilization. The borrow cap moves from 12,400 to 7,500, approximately 1.80x current outstanding borrows, landing at approximately 55.6% post-change borrow cap utilization.
- WETH on Aave V3 Base sits at 50.2% supply cap utilization. The proposed cap of 125,000 is approximately 1.47x current outstanding supply, landing at approximately 67.8% post-change cap utilization. The borrow cap moves from 143,000 to 100,000, approximately 1.45x current outstanding borrows, landing at approximately 69.1% post-change borrow cap utilization.
- cbETH on Aave V3 Base sits at 60.6% supply cap utilization. The proposed cap of 50,000 is approximately 1.10x current outstanding supply, landing at approximately 90.9% post-change cap utilization.
- stcUSD on Aave V3 MegaETH sits at 25.4% supply cap utilization. The proposed cap of 15M is approximately 1.48x current outstanding supply, landing at approximately 67.8% post-change cap utilization.
USDe Interest Rate Model
The recommendation reduces USDe Slope1 from 1.00% to 0.25% on Aave V3 Plasma, Aave V3 Monad, and Aave V3 Mantle, reaching the 0.25% Slope1 set out in the stablecoin interest rate changes proposed by TokenLogic. The base rate, the optimal utilization point, and Slope2 are unchanged on every reserve.
| Instance | Utilization | uOptimal | Current Borrow APR | New Borrow APR | Delta |
|---|---|---|---|---|---|
| Aave V3 Plasma | 13.1% | 85.0% | 6.45% | 6.34% | -11.6 BPS |
| Aave V3 Monad | 5.7% | 90.0% | 6.36% | 6.32% | -4.7 BPS |
| Aave V3 Mantle | 0.4% | 85.0% | 6.31% | 6.30% | -0.4 BPS |
Because the optimal utilization point is unchanged, the share of supply held as withdrawal liquidity at that point is unchanged.
Specification
Supply Caps
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Aave V3 Core | weETH | 1,350,000 | 1,500,000 |
| Aave V3 Core | sUSDe | 450,000,000 | 250,000,000 |
| Aave V3 Core | PT-srUSDe-22OCT2026 | 75,000,000 | 10,000,000 |
| Aave V3 Plasma | syrupUSDT | 150,000,000 | 100,000,000 |
| Aave V3 Plasma | PT-sUSDE-22OCT2026 | 200,000,000 | 100,000,000 |
| Aave V3 Plasma | USDe | 450,000,000 | 550,000,000 |
| Aave V3 Mantle | sUSDe | 75,000,000 | 100,000,000 |
| Aave V3 Monad | WETH | 20,000 | 10,000 |
| Aave V3 Base | WETH | 169,000 | 125,000 |
| Aave V3 Base | cbETH | 75,000 | 50,000 |
| Aave V3 MegaETH | stcUSD | 40,000,000 | 15,000,000 |
Borrow Caps
| Instance | Asset | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|
| Aave V3 Plasma | USDe | 335,000,000 | 100,000,000 |
| Aave V3 Monad | WETH | 12,400 | 7,500 |
| Aave V3 Base | WETH | 143,000 | 100,000 |
IRM
| Instance | Asset | Current Slope 1 | Recommended Slope 1 |
|---|---|---|---|
| Aave V3 Plasma | USDe | 1.00% | 0.25% |
| Aave V3 Monad | USDe | 1.00% | 0.25% |
| Aave V3 Mantle | USDe | 1.00% | 0.25% |
Next Steps
We will move forward and implement these updates via the Risk Steward process. 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.