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.
- Increase the supply cap for JAAA on Aave V3 Horizon from 50M to 60M.
- Increase the optimal utilization for USDT on Aave V3 Core from 93.00% to 94.00%.
- Increase the USDe base rate from 6.30% to 6.60% on Aave V3 Core, Avalanche, Mantle, Monad, and Plasma.
- Supply and borrow cap reductions for assets across V3 Core, Monad, Plasma, Mantle, and Base.
USDT Optimal Utilization (Aave V3 Core)
The recommendation moves the optimal utilization point on USDT from 93.00% to 94.00%. The base rate, Slope1, and Slope2 are unchanged.
Since the optimal point was set to 93% on September 16, 2026, USDT utilization has held at the kink, with a median of 93.0% and approximately half of observation period at or above it. Over the same period supply declined from approximately 3.17B to 2.89B while borrows held near 2.70B. At the current 92.8% utilization, the post-change variable borrow rate would be 4.34% APR, down from 4.39% under the current IRM, and the supply rate would be 3.63% APR, down from 3.67%.
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 up by one percentage point converts exit liquidity into borrow capacity.
| Instance | Asset | Supplied | Borrowed | Utilization | Idle Liquidity |
|---|---|---|---|---|---|
| Aave V3 Core | USDT | 2,894.4M | 2,686.1M | 92.8% | 208.3M |
| 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 | 202.6M | 173.7M | -28.9M | 5.7M | 34.6M |
The change adds approximately 28.9M of borrow capacity before Slope2 engages and reduces the withdrawal buffer at the optimal point by the same amount, a 14.3% relative reduction.
USDe Interest Rate Model
The recommendation raises the USDe base rate from 6.30% to 6.60% on all five deployments that carry USDe. The optimal utilization point, Slope1, and Slope2 are unchanged on every reserve.
| Instance | Utilization | uOptimal | Current Borrow APR | New Borrow APR | Delta |
|---|---|---|---|---|---|
| Aave V3 Core | 7.9% | 90.0% | 6.32% | 6.62% | +30 BPS |
| Aave V3 Plasma | 7.0% | 85.0% | 6.32% | 6.62% | +30 BPS |
| Aave V3 Monad | 1.3% | 90.0% | 6.30% | 6.60% | +30 BPS |
| Aave V3 Mantle | 0.1% | 85.0% | 6.30% | 6.60% | +30 BPS |
| Aave V3 Avalanche | 80.0% | 80.0% | 6.55% | 6.85% | +30 BPS |
These five reserves carry approximately 83.3M in aggregate USDe debt against approximately 1.19B supplied. Since the base rate was set to 6.30% on September 12, 2026, aggregate USDe debt has declined from approximately 179.1M.
Base Rate Anchor
The 7d mean sUSDe APY through September 23, 2026 stands at 5.00% and the 30d mean at 4.83%. Grossed up for the 25% reserve factor that applies to USDe on all five reserves, these correspond to 6.66% and 6.44% APY.
Source: LlamaRisk, September 28, 2026
JAAA (Aave V3 Horizon)
JAAA, the Janus Henderson Anemoy AAA CLO Fund token, sits at 88.9% supply cap utilization on Aave V3 Horizon, with 44.4M supplied against a cap of 50M.
Supply Distribution
Source: LlamaRisk, September 28, 2026
The supplier base is concentrated: the largest position holds approximately 30.5% of supply, the top three hold approximately 75.1%, and every top supplier carries debt with a health factor between 1.02 and 1.11, with a median of 1.07. The debt is entirely stablecoin, approximately 34.2M in RLUSD and approximately 23.9M in GHO, so health factor stability tracks the JAAA price.
Recommendation
The proposed cap of 60M is approximately 1.35x the current outstanding supply, resulting in approximately 74.1% post-change cap utilization.
Cap Reductions
- wstETH on Aave V3 Core sits at 71.2% supply cap utilization. The proposed cap of 950K is approximately 1.21x current outstanding supply, landing at approximately 82.4% post-change cap utilization.
- USDe on Aave V3 Core sits at 64.8% supply cap utilization. The proposed cap of 700M is approximately 1.20x current outstanding supply, landing at approximately 83.5% post-change cap utilization. The borrow cap moves to 50M, landing at approximately 87.0% post-change borrow cap utilization.
- sUSDe on Aave V3 Core sits at 54.5% supply cap utilization. The proposed cap of 175M is approximately 1.29x current outstanding supply, landing at approximately 77.8% post-change cap utilization.
- USDe on Aave V3 Monad sits at 35.1% supply cap utilization. The proposed cap of 100M is approximately 1.90x current outstanding supply, landing at approximately 52.7% post-change cap utilization. The borrow cap moves to 10M, approximately 14.9x current outstanding borrows, landing at approximately 6.7% post-change borrow cap utilization.
- syrupUSDT on Aave V3 Plasma sits at 32.4% supply cap utilization. The proposed cap of 50M is approximately 1.54x current outstanding supply, landing at approximately 64.7% post-change cap utilization.
- syrupUSDT on Aave V3 Mantle sits at 25.1% supply cap utilization. The proposed cap of 40M is approximately 1.99x current outstanding supply, landing at approximately 50.2% post-change cap utilization.
- weETH on Aave V3 Base sits at 33.9% supply cap utilization. The proposed cap of 20K is approximately 1.31x current outstanding supply, landing at approximately 76.4% post-change cap utilization.
- wstETH on Aave V3 Base sits at 41.0% supply cap utilization. The proposed cap of 15K is approximately 1.46x current outstanding supply, landing at approximately 68.3% post-change cap utilization.
- syrupUSDC on Aave V3 Base sits at 0.5% supply cap utilization. The proposed cap of 10M lands at approximately 1.1% post-change cap utilization.
Specification
Caps
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Aave V3 Core | wstETH | 1,100,000 | 950,000 |
| Aave V3 Core | USDe | 902,000,000 | 700,000,000 |
| Aave V3 Core | sUSDe | 250,000,000 | 175,000,000 |
| Aave V3 Monad | USDe | 150,000,000 | 100,000,000 |
| Aave V3 Plasma | syrupUSDT | 100,000,000 | 50,000,000 |
| Aave V3 Mantle | syrupUSDT | 80,000,000 | 40,000,000 |
| Aave V3 Base | weETH | 45,000 | 20,000 |
| Aave V3 Base | wstETH | 25,000 | 15,000 |
| Aave V3 Base | syrupUSDC | 21,000,000 | 10,000,000 |
| Aave V3 Horizon | JAAA | 50,000,000 | 60,000,000 |
| Instance | Asset | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|
| Aave V3 Core | USDe | 100,000,000 | 50,000,000 |
| Aave V3 Monad | USDe | 36,000,000 | 10,000,000 |
IRM
| Instance | Asset | Current Optimal Usage Ratio | Recommended Optimal Usage Ratio |
|---|---|---|---|
| Aave V3 Core | USDT | 93.00% | 94.00% |
| Instance | Asset | Current Base Rate | Recommended Base Rate |
|---|---|---|---|
| Aave V3 Core | USDe | 6.30% | 6.60% |
| Aave V3 Avalanche | USDe | 6.30% | 6.60% |
| Aave V3 Mantle | USDe | 6.30% | 6.60% |
| Aave V3 Monad | USDe | 6.30% | 6.60% |
| Aave V3 Plasma | USDe | 6.30% | 6.60% |
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.