# Risk Stewards: Cap and IRM Changes on Aave V4 / 2026.11.06 **URL:** \ **Category:** Risk\ **Created:** [November 6, 2026, 3:55pm UTC](https://governance.aave.com/t/risk-stewards-cap-and-irm-changes-on-aave-v4-2026-11-06/26073 "2026-11-06T15:55:38Z")\ **Posts on this page:** 1\ **Page:** 1
**Author:** ![LlamaRisk](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/llamarisk/32/12865_2.png) [@LlamaRisk](https://governance.aave.com/u/LlamaRisk)\ **Post date:** [November 6, 2026, 3:55pm UTC](https://governance.aave.com/t/risk-stewards-cap-and-irm-changes-on-aave-v4-2026-11-06/26073/1 "2026-11-06T15:55:38Z")
## 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 USDG on the Core Hub Main Spoke from 63.5M to 75M. - Increase the add cap for WBTC on the Prime Hub Bluechip Spoke from 700 to 1,000. - Increase the add cap for cbBTC on the Prime Hub Bluechip Spoke from 300 to 600. - Increase the base rate for USDe on the Plus Hub from 6.60% to 7.00%. Aave V4 Avalanche: - Increase the draw cap for USDC on the Core Hub Main Spoke from 9M to 15M. Aave V4 Base: - Increase the add cap for GOOGLc on the Equities Hub MAG7 Spoke from 22K to 40K. - Increase the add cap for METAc on the Equities Hub MAG7 Spoke from 5.8K to 10K. - Increase the add cap for NVDAc on the Equities Hub MAG7 Spoke from 24K to 35K. ## Cap Utilization The chart shows add cap utilization (left) and draw cap utilization (right) for Aave V4 reserves at or above 50% of either cap, split by hub. The draw cap panel excludes cross-hub credit lines, which are draw-only legs through which a spoke borrows from a hub against collateral supplied on another hub. ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/8/875b9f8169fc5736129ff3b3611fa239c203893d.png) _Source: LlamaRisk, November 6, 2026_ ## USDG (Core Hub) ### USDG Main Spoke Borrow Distribution ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/f/f33877072725ede1228c49fd779b390abfea69f1.png) _Source: LlamaRisk, November 6, 2026_ USDG borrowing on the Main Spoke is concentrated, with the largest position holding approximately 27% of the drawn amount, the top three approximately 45%, and the top twenty approximately 87%. The largest borrowers hold USDG debt mainly against ETH-denominated collateral (weETH, WETH, and wstETH), in some cases alongside WBTC and cbBTC, at health factors between 1.15 and 3.18 with a median of 1.42, so HF in the cohort tracks mainly the ETH price. ### Recommendation The proposed draw cap of 75M lands at approximately 71.0% post-change draw cap utilization, at which point the 7.60M of USDG liquidity available on the Core Hub, where utilization stands at 90.1% against an optimal usage ratio of 90.00%, becomes the limit on further draws. ## WBTC (Prime Hub) ### WBTC Bluechip Spoke Supply Distribution ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/c/c13f4e9c8bc6a962635fcc3f250402a085cea0e4.png) _Source: LlamaRisk, November 6, 2026_ WBTC supply on the Bluechip Spoke is moderately concentrated, with the largest position holding approximately 14% of the reserve, the top three approximately 36%, and the top twenty approximately 74%. All of the top twenty borrow stablecoins against WBTC, mainly USDC and USDT and to a lesser extent USDG and frxUSD, at health factors between 1.10 and 5.27 with a median of 1.65, so HF in the cohort tracks the BTC price. ### Recommendation As of November 6, 2026, the WBTC add cap on the Bluechip Spoke is 53.6% utilized (375 / 700). The proposed add cap of 1,000 lands at approximately 37.5% post-change add cap utilization. ## cbBTC (Prime Hub) ### cbBTC Bluechip Spoke Supply Distribution ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/2/22298c5261dcc45c2e0c8d864d52ffd393cad475.png) _Source: LlamaRisk, November 6, 2026_ cbBTC supply on the Bluechip Spoke is concentrated, with the two largest positions holding approximately 26% of the reserve each, the top three approximately 60%, and the top twenty approximately 92%. All of the top twenty borrow stablecoins against cbBTC, mainly USDC and to a lesser extent USDT, frxUSD, and USDG, in some cases alongside WBTC collateral, at health factors between 1.10 and 10.83 with a median of 1.64, so HF in the cohort tracks the BTC price. ### Recommendation As of November 6, 2026, the cbBTC add cap on the Bluechip Spoke is 78.8% utilized (236 / 300). The proposed add cap of 600 lands at approximately 39.4% post-change add cap utilization. ## USDe IRM (Plus Hub) Ethena increased Liquid Leverage rewards to 5.25% APR, we therefore recommending increasing base drawn rate to 7% accordingly. USDe on the Plus Hub holds 29.89M added and 0.47M drawn as of November 6, 2026, for a hub utilization of 1.6% against an optimal usage ratio of 90.00%. The proposed change raises the base drawn rate from 6.60% to 7.00%. The optimal usage ratio (90.00%), slope1 (0.25%), and slope2 (30.00%) remain unchanged. At current hub utilization, the USDe borrow rate moves from 6.60% to 7.00%, and the supply APY, after the 25% liquidity fee, remains at approximately 0.08%. At the optimal usage ratio, the borrow rate moves from 6.85% to 7.25%. ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e5a63cbd4865347af65a300c06a0840b1e548dd8.png) _Source: LlamaRisk, November 6, 2026_ ### Recommendation Increasing the base rate for USDe on the Plus Hub from 6.60% to 7.00% raises the USDe borrow rate by 0.40 percentage points at every utilization level. ## USDC (Avalanche Core Hub) ### USDC Main Spoke Borrow Distribution ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e2ceac54c9a3a8d57afa2ed732ea7ae354ce5cbb.png) _Source: LlamaRisk, November 6, 2026_ USDC borrowing on the Main Spoke is highly concentrated, with the largest position holding approximately 51% of the drawn amount, the top three approximately 69%, and the top twenty approximately 96%. The largest borrowers hold USDC debt against BTC.b, WAVAX, and WETH.e collateral, with WAVAX the largest by value, at health factors between 1.09 and 9.37 with a median of 1.58, so HF in the cohort tracks the AVAX and BTC prices. ### Recommendation The proposed draw cap of 15M lands at approximately 46.0% post-change draw cap utilization, at which point the 1.67M of USDC liquidity available on the Core Hub, where utilization stands at 80.6% against an optimal usage ratio of 90.00%, becomes the limit on further draws. ## GOOGLc (Base Equities Hub) ### GOOGLc MAG7 Spoke Supply Distribution ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/3/379aa1223e6a0075c28c84fcfc9a0dcddc631a15.png) _Source: LlamaRisk, November 6, 2026_ GOOGLc supply on the MAG7 Spoke is concentrated, with the largest position holding approximately 28% of the reserve, the top three approximately 66%, and the top twenty approximately 95%. Fifteen of the top twenty borrow USDC against GOOGLc, in some cases alongside other tokenized equities, at health factors between 1.16 and 2.33 with a median of 1.46, so HF in the cohort tracks the GOOGLc price. ### Recommendation As of November 6, 2026, the GOOGLc add cap on the MAG7 Spoke is 84.6% utilized (18,606 / 22,000). The proposed add cap of 40K lands at approximately 46.5% post-change add cap utilization. ## METAc (Base Equities Hub) ### METAc MAG7 Spoke Supply Distribution ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/7/767134cdf853ccf4076583ea0c291cd5094664bd.png) _Source: LlamaRisk, November 6, 2026_ METAc supply on the MAG7 Spoke is concentrated, with the largest position holding approximately 29% of the reserve, the top three approximately 55%, and the top twenty approximately 99%. Nineteen of the top twenty borrow USDC against METAc, in some cases alongside other tokenized equities, at health factors between 1.14 and 2.89 with a median of 1.44, so HF in the cohort tracks the METAc price. ### Recommendation As of November 6, 2026, the METAc add cap on the MAG7 Spoke is 89.2% utilized (5,174 / 5,800). The proposed add cap of 10K lands at approximately 51.7% post-change add cap utilization. ## NVDAc (Base Equities Hub) ### NVDAc MAG7 Spoke Supply Distribution ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/2/21399997595eac058db3d5dd2feef31be59bdf08.png) _Source: LlamaRisk, November 6, 2026_ NVDAc supply on the MAG7 Spoke is concentrated, with the largest position holding approximately 41% of the reserve, the top three approximately 77%, and the top twenty approximately 97%. Eighteen of the top twenty borrow USDC against NVDAc, in some cases alongside other tokenized equities, at health factors between 1.24 and 2.89 with a median of 1.85, so HF in the cohort tracks the NVDAc price. ### Recommendation As of November 6, 2026, the NVDAc add cap on the MAG7 Spoke is 65.6% utilized (15,748 / 24,000). The proposed add cap of 35K lands at approximately 45.0% post-change add cap utilization. ## Specification ### Add Caps | Hub | Spoke | Asset | Current Add Cap | Recommended Add Cap | | --- | --- | --- | --- | --- | | Ethereum Prime | Bluechip | WBTC | 700 | 1,000 | | Ethereum Prime | Bluechip | cbBTC | 300 | 600 | | Base Equities | MAG7 | GOOGLc | 22,000 | 40,000 | | Base Equities | MAG7 | METAc | 5,800 | 10,000 | | Base Equities | MAG7 | NVDAc | 24,000 | 35,000 | ### Draw Caps | Hub | Spoke | Asset | Current Draw Cap | Recommended Draw Cap | | --- | --- | --- | --- | --- | | Ethereum Core | Main | USDG | 63,500,000 | 75,000,000 | | Avalanche Core | Main | USDC | 9,000,000 | 15,000,000 | ### IRM | Hub | Asset | Parameter | Current | Recommended | | --- | --- | --- | --- | --- | | Ethereum Plus | USDe | Base Rate | 6.60% | 7.00% | ## 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](https://dashboard.llamarisk.com/protocols/aave/risk-parameter-updates/v4). ## 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.