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 USDe base rate from 6.00% to 6.30% and decrease USDe Slope1 to 0.25% on Core and Avalanche, and to 1% on Plasma, Monad, and Mantle.
- Increase Slope1 to 5.00% on the USDC, USDT0, GHO, mUSD, and AUSD reserves on Monad.
USDe Interest Rate Model
The recommendation raises the base rate from 6.00% to 6.30% and reduces Slope1 on all five deployments that carry USDe, continuing the realignment set out in the stablecoin interest rate changes proposed by TokenLogic. Aave V3 Core and Aave V3 Avalanche reach the 0.25% Slope1 in that proposal, and Aave V3 Plasma, Aave V3 Monad, and Aave V3 Mantle take a further 100 BPS step toward it. The optimal utilization point and Slope2 are unchanged on every reserve.
| Instance | Utilization | uOptimal | Current Borrow APR | New Borrow APR | Delta |
|---|---|---|---|---|---|
| Aave V3 Core | 17.8% | 90.0% | 6.20% | 6.35% | +15 BPS |
| Aave V3 Plasma | 18.4% | 85.0% | 6.43% | 6.52% | +8 BPS |
| Aave V3 Monad | 6.6% | 90.0% | 6.15% | 6.37% | +23 BPS |
| Aave V3 Mantle | 0.7% | 85.0% | 6.02% | 6.31% | +29 BPS |
| Aave V3 Avalanche | 70.0% | 80.0% | 6.88% | 6.52% | -36 BPS |
These five reserves carry approximately 199.7M in aggregate USDe debt against approximately 1.18B supplied. Because the optimal utilization point is unchanged, the share of supply held as withdrawal liquidity at that point is unchanged.
The 6.30% base rate is anchored to Ethena’s realized sUSDe yield using the methodology specified here. The 7d mean sUSDe APY stands at 4.75% (4.64% APR) and the 30d mean at 4.54% (4.44% APR).
Source: LlamaRisk, September 11, 2026
The gap between the base rate and realized sUSDe yield may widen in either direction. This spread will be reassessed weekly, with corresponding adjustments to the base rate proposed as needed.
USDe Debt Migration
The USDe base rate moved from 0.00% to 6.00% in six steps between August 28 and September 9, 2026, alongside the Slope1 reductions applied over the same period. USDe debt declined on every deployment across that window.
| Instance | Debt on August 28 | Debt now | Change | Supply on August 28 | Supply now | Utilization then | Utilization now |
|---|---|---|---|---|---|---|---|
| Aave V3 Core | 450.4M | 117.5M | -73.9% | 713.3M | 661.1M | 63.1% | 17.8% |
| Aave V3 Plasma | 169.0M | 75.7M | -55.2% | 332.4M | 411.1M | 50.8% | 18.4% |
| Aave V3 Monad | 36.0M | 6.4M | -82.2% | 120.0M | 97.0M | 30.0% | 6.6% |
| Aave V3 Mantle | 2.7M | 0.1M | -96.2% | 10.9M | 14.1M | 25.1% | 0.7% |
Aggregate USDe debt across the five reserves fell from approximately 658.1M to approximately 199.7M, a reduction of approximately 70%. On each deployment, the proportional decline in debt exceeds the move in supply, so the decline in utilization is driven principally by repayment rather than by deposit growth.
Borrow and Repay events on each Pool were aggregated per account over the window, allowing the USDe repayment to be split into the portion that the same accounts replaced with other stablecoin borrowing and the portion they did not.
| Instance | Accounts reducing USDe debt | USDe debt reduced | Replaced with other stablecoin debt | Share | Not replaced |
|---|---|---|---|---|---|
| Aave V3 Core | 304 | 330.8M | 122.4M | 37.0% | 208.4M |
| Aave V3 Plasma | 77 | 93.9M | 13.1M | 14.0% | 80.8M |
| Aave V3 Monad | 54 | 30.5M | 0.1M | 0.4% | 30.4M |
Within the amount not replaced, accounts that took on no other stablecoin debt on the market account for 139.6M on Aave V3 Core, 70.5M on Aave V3 Plasma, and 30.4M on Aave V3 Monad.
Monad Stablecoin Interest Rate Model
The recommendation raises Slope1 to 5.00% on the five stablecoin reserves on Aave V3 Monad, implementing the Monad stablecoin IRM adjustments proposed by TokenLogic. The base rate, the optimal utilization point, and Slope2 are unchanged on every reserve, so the maximum rate at full utilization moves by the same amount as Slope1.
| Asset | Utilization | uOptimal | Current Slope 1 | Recommended Slope 1 | Current Borrow APR | New Borrow APR | Maximum Rate |
|---|---|---|---|---|---|---|---|
| USDC | 92.0% | 92.0% | 4.40% | 5.00% | 4.40% | 5.00% | 24.40% to 25.00% |
| USDT0 | 92.1% | 92.0% | 4.40% | 5.00% | 4.65% | 5.25% | 24.40% to 25.00% |
| GHO | 78.9% | 92.0% | 4.00% | 5.00% | 3.43% | 4.29% | 24.00% to 25.00% |
| mUSD | 78.3% | 80.0% | 4.00% | 5.00% | 3.92% | 4.90% | 44.00% to 45.00% |
| AUSD | 80.1% | 80.0% | 4.00% | 5.00% | 4.13% | 5.13% | 44.00% to 45.00% |
Specification
USDe
| Instance | Asset | Current Base Rate | Recommended Base Rate | Current Slope 1 | Recommended Slope 1 |
|---|---|---|---|---|---|
| Aave V3 Core | USDe | 6.00% | 6.30% | 1.00% | 0.25% |
| Aave V3 Plasma | USDe | 6.00% | 6.30% | 2.00% | 1.00% |
| Aave V3 Monad | USDe | 6.00% | 6.30% | 2.00% | 1.00% |
| Aave V3 Mantle | USDe | 6.00% | 6.30% | 2.00% | 1.00% |
| Aave V3 Avalanche | USDe | 6.00% | 6.30% | 1.00% | 0.25% |
Monad Stablecoins
| Instance | Asset | Current Slope 1 | Recommended Slope 1 |
|---|---|---|---|
| Aave V3 Monad | USDC | 4.40% | 5.00% |
| Aave V3 Monad | USDT0 | 4.40% | 5.00% |
| Aave V3 Monad | GHO | 4.00% | 5.00% |
| Aave V3 Monad | mUSD | 4.00% | 5.00% |
| Aave V3 Monad | AUSD | 4.00% | 5.00% |
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.