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:
- Decrease optimalUsageRatio for USDT from 94.00% to 93.00%.
Aave V3 Horizon:
- Increase the supply cap for JAAA from 40,000,000 to 50,000,000.
- Increase the base rate for GHO from 3.00% to 3.25%.
USDT Optimal Utilization (Aave V3 Core)
The recommendation moves the optimal utilization point on USDT, the largest V3 Core stablecoin reserve, from 94.00% to 93.00% as proposed here. The base rate, Slope1, and Slope2 are unchanged, so the rate at the uOptimal stays at 4.40% APR, and the rate at full utilization stays at 14.40% APR.
At the current 85.8% utilization, the post-change variable borrow rate for USDT would be 4.06% APR, up from 4.02% under the current IRM.
Source: LlamaRisk, September 16, 2026
Withdrawal Liquidity
The optimal point sets how much of the supply remains available for withdrawal when the reserve is at its intended operating level. Moving it down by one percentage point converts borrow capacity into exit liquidity.
| Instance | Asset | Supplied | Borrowed | Utilization | Idle Liquidity |
|---|---|---|---|---|---|
| Aave V3 Core | USDT | 3,166.5M | 2,718.3M | 85.8% | 448.2M |
| Instance | Asset | Buffer at Optimal (current) | Buffer at Optimal (new) | Change | Borrow Headroom to Optimal (current) | Borrow Headroom to Optimal (new) |
|---|---|---|---|---|---|---|
| Aave V3 Core | USDT | 190.0M | 221.7M | +31.7M | 258.2M | 226.6M |
The withdrawal buffer at the optimal point grows by one percent of the supplied balance, and the borrow capacity available before Slope2 engages falls by the same amount. USDT currently operates well below the new optimal point, so the change adds withdrawal buffer without constraining borrowing at prevailing utilization.
JAAA (Aave V3 Horizon)
JAAA, the Janus Henderson AAA CLO Fund token, sits at 93.8% supply cap utilization on Aave V3 Horizon.
Supply Distribution
Source: LlamaRisk, September 16, 2026
The supplier base is concentrated: the largest position holds approximately 36% of supply, the top three hold approximately 85%, and every top supplier carries debt with a health factor between 1.02 and 1.20, with a median of 1.07. The debt is entirely stablecoin, approximately 26.8M in RLUSD and approximately 23.5M in GHO, so health factor stability tracks the JAAA price.
Recommendation
The proposed cap of 50,000,000 is approximately 1.33x the current outstanding supply, resulting in approximately 75.0% post-change cap utilization.
GHO Base Rate (Aave V3 Horizon)
The recommendation raises the GHO base rate on Aave V3 Horizon from 3.00% to 3.25%, implementing the Horizon leg of the GHO Stewards September 2026 GHO parameter update published by TokenLogic on September 15, 2026.
Specification
Caps
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Aave V3 Horizon | JAAA | 40,000,000 | 50,000,000 |
IRM
| Instance | Asset | Current Optimal Usage Ratio | Recommended Optimal Usage Ratio |
|---|---|---|---|
| Aave V3 Core | USDT | 94.00% | 93.00% |
| Instance | Asset | Current Base Rate | Recommended Base Rate |
|---|---|---|---|
| Aave V3 Horizon | GHO | 3.00% | 3.25% |
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.