Summary
LlamaRisk recommends the following parameter changes based on user behavior, on-chain liquidity, and position health observed in the latest review of Aave V4 reserves.
Aave V4 Ethereum:
- Increase the draw cap for USDT on the Core Hub Ethena Ecosystem Spoke from 1.5M to 3M.
- Increase the add cap for USDT on the Core Hub Main Spoke from 28M to 40M.
- Increase the draw cap for USDT on the Core Hub Main Spoke from 20M to 30M.
- Increase the draw cap for USDG on the Core Hub Main Spoke from 50M to 60M.
- Increase the add cap for USDG on the Global Dollar Hub USDG Maple Spoke from 45M to 55M.
- Increase the draw cap for USDG on the Global Dollar Hub USDG Maple Spoke from 42.75M to 50M.
- Increase the add cap for syrupUSDG on the Global Dollar Hub USDG Maple Spoke from 60M to 70M.
- Reduce slope2 for WETH on the Core Hub from 14.00% to 8.00%.
- Reduce the add cap for PT-USDG-24SEP2026 on the Global Dollar Hub USDG Pendle Spoke from 1 to 0.
USDT (Core Hub)
USDT on the Aave V4 Ethereum Core Hub holds 22.83M added and 21.20M drawn, for a hub utilization of 92.8% against an optimal usage ratio of 92.00%. Available hub liquidity stands at 1.64M USDT.
| Spoke | Added | Add Cap | Add Cap Utilization | Drawn | Draw Cap | Draw Cap Utilization |
|---|---|---|---|---|---|---|
| Main | 19,950,856 | 28,000,000 | 71.3% | 13,360,244 | 20,000,000 | 66.8% |
| Ethena Ecosystem | 0 | 0 | - | 1,501,024 | 1,500,000 | 100.1% |
Source: LlamaRisk, October 6, 2026
Recommendation
The Ethena Ecosystem Spoke draw cap is fully utilized within a day of an increase to 1.5M. The proposed draw cap land increase to 3M is part of Round 18 of V4 cap updates, being executed in two steps.
On the Main Spoke, the proposed add cap of 40M lands at approximately 49.9% post-change add cap utilization, and the proposed draw cap of 30M at approximately 44.5%. Additional supply through the Main Spoke adds liquidity to a hub asset operating above its optimal usage ratio. New draws across all spokes remain bounded by available Core hub liquidity.
USDG (Core and Global Dollar Hub)
| Hub | Spoke | Added | Add Cap | Add Cap Utilization | Drawn | Draw Cap | Draw Cap Utilization |
|---|---|---|---|---|---|---|---|
| Core | Main | 76,905,033 | 90,000,000 | 85.5% | 49,277,045 | 50,000,000 | 98.6% |
| Global Dollar | USDG Maple | 41,094,552 | 45,000,000 | 91.3% | 36,163,852 | 42,750,000 | 84.6% |
Recommendation
The Core Hub Main Spoke draw cap for USDG is 98.6% utilized. The proposed draw cap of 60M lands at approximately 82.1% post-change draw cap utilization, and new draws remain bounded by available Core Hub liquidity.
On the Global Dollar Hub, the USDG Maple Spoke add cap is 91.3% utilized and the draw cap 84.6% utilized. The proposed add cap of 55M and draw cap of 50M land at approximately 74.7% and 72.3% post-change cap utilization. Additional supply through the USDG Maple Spoke adds liquidity to a hub asset operating close to its optimal usage ratio, and new draws remain bounded by available Global Dollar Hub liquidity.
syrupUSDG (Global Dollar Hub)
| Spoke | Added | Add Cap | Add Cap Utilization |
|---|---|---|---|
| USDG Maple | 53,706,506 | 60,000,000 | 89.5% |
Recommendation
The syrupUSDG add cap on the Global Dollar Hub USDG Maple Spoke is 89.5% utilized. The proposed add cap of 70M lands at approximately 76.7% post-change add cap utilization.
WETH Interest Rate Model (Core Hub)
The proposed change reduces slope2 (rateGrowthAfterOptimal) from 14.00% to 8.00%, reflecting the significant growth in WETH liquidity on the V4 Core Hub, which now exceeds 40.5K WETH (~$110M). This increase in supplied liquidity has strengthened the liquidity buffer available as utilization rises above the optimal level. As a result, the need for a steep rate increase to discourage borrowing and incentivize repayment at high utilization has decreased.
The optimal usage ratio (92.00%), base rate (0.00%), and slope1 (2.20%) remain unchanged. At the current 92.1% hub utilization, just above the 92.00% optimal point, the borrow rate is 2.31% under the current curve and would be 2.26% under the proposed curve. At 100% utilization, the borrow rate decreases from 16.20% to 10.20%, providing a less punitive rate response once utilization exceeds the optimal level while still preserving a meaningful incentive for borrowers to repay and restore liquidity.
Source: LlamaRisk, October 6, 2026
WETH drawn on the Core Hub totals 39,886 WETH, of which 38,466 WETH (96.4%) is drawn through the EtherFi Spoke.
Cap Reductions
PT-USDG-24SEP2026 matured on September 24, 2026. A total of 670,480 PT remains supplied on the Global Dollar Hub USDG Pendle Spoke, and the proposed add cap of 0 closes the spoke to new deposits, with withdrawals unaffected.
Specification
Add Caps
| Hub | Spoke | Asset | Current Add Cap | Recommended Add Cap |
|---|---|---|---|---|
| Ethereum Core | Main | USDT | 28,000,000 | 40,000,000 |
| Global Dollar | USDG Maple | USDG | 45,000,000 | 55,000,000 |
| Global Dollar | USDG Maple | syrupUSDG | 60,000,000 | 70,000,000 |
| Global Dollar | USDG Pendle | PT-USDG-24SEP2026 | 1 | 0 |
Draw Caps
| Hub | Spoke | Asset | Current Draw Cap | Recommended Draw Cap |
|---|---|---|---|---|
| Ethereum Core | Main | USDT | 20,000,000 | 30,000,000 |
| Ethereum Core | Ethena Ecosystem | USDT | 1,500,000 | 3,000,000 |
| Ethereum Core | Main | USDG | 50,000,000 | 60,000,000 |
| Global Dollar | USDG Maple | USDG | 42,750,000 | 50,000,000 |
IRM
| Hub | Asset | Current Slope 2 | Recommended Slope 2 |
|---|---|---|---|
| Ethereum Core | WETH | 14.00% | 8.00% |
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.