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:
- Reduce supply cap for weETH from 1,600,000 to 1,110,000.
- Reduce supply cap for WBTC from 39,000 to 31,800.
- Increase supply cap for PT-USDG-28MAY2026 from 80,000,000 to 120,000,000.
- Reduce supply cap for osETH from 180,000 to 110,000.
- Reduce supply cap for rETH from 60,000 to 49,000.
- Reduce supply cap for tBTC from 2,800 to 2,500.
- Reduce supply cap for PYUSD from 45,000,000 to 21,000,000.
- Reduce borrow cap for PYUSD from 40,000,000 to 18,000,000.
- Reduce supply cap for syrupUSDT from 18,000,000 to 1,700,000.
Aave V3 Prime:
- Reduce supply cap for tETH from 25,000 to 22,000.
Aave V3 Avalanche:
- Reduce supply cap for BTC.b from 2,600 to 2,200.
Aave V3 Sonic:
- Reduce supply cap for USDC from 20,000,000 to 5,200,000.
- Reduce borrow cap for USDC from 18,000,000 to 4,600,000.
- Reduce supply cap for WETH from 2,500 to 1,800.
Aave V3 Base:
- Reduce supply cap for weETH from 100,000 to 45,000.
- Reduce supply cap for syrupUSDC from 100,000,000 to 21,000,000.
- Reduce supply cap for tBTC from 20 to 8.
- Reduce supply cap for ezETH from 500 to 40.
Aave V3 Arbitrum:
- Reduce supply cap for weETH from 70,000 to 59,000.
- Reduce supply cap for LINK from 1,000,000 to 690,000.
Aave V3 Linea:
- Reduce supply cap for ezETH from 7,900 to 510.
Aave V3 Optimism:
- Reduce supply cap for rETH from 1,000 to 450.
- Reduce supply cap for OP from 8,000,000 to 6,500,000.
PT-USDG-28MAY2026 (Aave V3 Core)
PT-USDG-28MAY2026 has reached 100.0% supply cap utilization (80,000,000 / 80,000,000) on the Aave V3 Core instance. The token matures on May 28, 2026.
Supply Distribution
Source: LlamaRisk, May 14, 2026
The top PT-USDG-28MAY2026 suppliers run the position as a stable-collateral / stable-debt loop, borrowing USDG and other stablecoins against the PT collateral inside the stablecoin E-Mode category. The collateral and debt legs share the dollar-peg, which bounds health-factor degradation in the cohort over the remaining 14 days to maturity.
Liquidity
Source: LlamaRisk, May 14, 2026
The primary trading venue is the Pendle AMM pool on Ethereum, which holds $54,832,052 in total liquidity. The pool composition is 81% SY / 19% PT, favorable for absorbing PT sells during liquidations. Pool TVL provides adequate depth relative to the supplied PT position at current cap.
Recommendation
Given the fully saturated cap, the correlated stable-collateral / stable-debt profile inside the stablecoin E-Mode category, and the adequate Pendle AMM liquidity, we recommend increasing the supply cap for PT-USDG-28MAY2026 on Aave V3 Core from 80,000,000 to 120,000,000. The borrow cap remains unchanged.
Cap Reductions
The following reserves have material idle headroom relative to current demand, and the proposed caps tighten that buffer.
On Aave V3 Core, weETH has 1,056,279 deposited against a 1,600,000 supply cap (66.0% utilization). The proposed supply cap of 1,110,000 sits at 1.05x current deposits.
On Aave V3 Core, WBTC has 29,980 deposited against a 39,000 supply cap (76.9% utilization). The proposed supply cap of 31,800 sits at 1.06x current deposits.
On Aave V3 Core, osETH has 98,257 deposited against a 180,000 supply cap (54.6% utilization). The proposed supply cap of 110,000 sits at 1.12x current deposits.
On Aave V3 Core, rETH has 37,109 deposited against a 60,000 supply cap (61.8% utilization). The proposed supply cap of 49,000 sits at 1.32x current deposits.
On Aave V3 Core, tBTC has 1,892 deposited against a 2,800 supply cap (67.6% utilization). The proposed supply cap of 2,500 sits at 1.32x current deposits.
On Aave V3 Core, PYUSD has 16,351,919 deposited against a 45,000,000 supply cap (36.3% utilization). The proposed supply cap of 21,000,000 sits at 1.28x current deposits. On Aave V3 Core, PYUSD has 14,528,308 borrowed against a 40,000,000 borrow cap (36.3% utilization). The proposed borrow cap of 18,000,000 sits at 1.24x current outstanding.
On Aave V3 Core, syrupUSDT has 1,346,864 deposited against a 18,000,000 supply cap (7.5% utilization). The proposed supply cap of 1,700,000 sits at 1.26x current deposits.
On Aave V3 Prime, tETH has 16,688 deposited against a 25,000 supply cap (66.8% utilization). The proposed supply cap of 22,000 sits at 1.32x current deposits.
On Aave V3 Avalanche, BTC.b has 1,683 deposited against a 2,600 supply cap (64.7% utilization). The proposed supply cap of 2,200 sits at 1.31x current deposits.
On Aave V3 Sonic, USDC has 3,918,394 deposited against a 20,000,000 supply cap (19.6% utilization). The proposed supply cap of 5,200,000 sits at 1.33x current deposits. On Aave V3 Sonic, USDC has 2,766,657 borrowed against a 18,000,000 borrow cap (15.4% utilization). The proposed borrow cap of 4,600,000 sits at 1.66x current outstanding.
On Aave V3 Sonic, WETH has 1,260 deposited against a 2,500 supply cap (50.4% utilization). The proposed supply cap of 1,800 sits at 1.43x current deposits.
On Aave V3 Base, weETH has 37,176 deposited against a 100,000 supply cap (37.2% utilization). The proposed supply cap of 45,000 sits at 1.21x current deposits.
On Aave V3 Base, syrupUSDC has 16,211,293 deposited against a 100,000,000 supply cap (16.2% utilization). The proposed supply cap of 21,000,000 sits at 1.30x current deposits.
On Aave V3 Base, tBTC has 5 deposited against a 20 supply cap (26.1% utilization). The proposed supply cap of 8 sits at 1.53x current deposits.
On Aave V3 Base, ezETH has 27 deposited against a 500 supply cap (5.4% utilization). The proposed supply cap of 40 sits at 1.48x current deposits.
On Aave V3 Arbitrum, weETH has 44,729 deposited against a 70,000 supply cap (63.9% utilization). The proposed supply cap of 59,000 sits at 1.32x current deposits.
On Aave V3 Arbitrum, LINK has 465,513 deposited against a 1,000,000 supply cap (46.6% utilization). The proposed supply cap of 690,000 sits at 1.48x current deposits.
On Aave V3 Linea, ezETH has 383 deposited against a 7,900 supply cap (4.9% utilization). The proposed supply cap of 510 sits at 1.33x current deposits.
On Aave V3 Optimism, rETH has 305 deposited against a 1,000 supply cap (30.5% utilization). The proposed supply cap of 450 sits at 1.47x current deposits.
On Aave V3 Optimism, OP has 4,402,720 deposited against a 8,000,000 supply cap (55.0% utilization). The proposed supply cap of 6,500,000 sits at 1.48x current deposits.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | weETH | 1,600,000 | 1,110,000 | — | — |
| Aave V3 Core | WBTC | 39,000 | 31,800 | 4,000 | — |
| Aave V3 Core | PT-USDG-28MAY2026 | 80,000,000 | 120,000,000 | — | — |
| Aave V3 Core | osETH | 180,000 | 110,000 | — | — |
| Aave V3 Core | rETH | 60,000 | 49,000 | — | — |
| Aave V3 Core | tBTC | 2,800 | 2,500 | 1 | — |
| Aave V3 Core | PYUSD | 45,000,000 | 21,000,000 | 40,000,000 | 18,000,000 |
| Aave V3 Core | syrupUSDT | 18,000,000 | 1,700,000 | — | — |
| Aave V3 Prime | tETH | 25,000 | 22,000 | — | — |
| Aave V3 Avalanche | BTC.b | 2,600 | 2,200 | 79 | — |
| Aave V3 Sonic | USDC | 20,000,000 | 5,200,000 | 18,000,000 | 4,600,000 |
| Aave V3 Sonic | WETH | 2,500 | 1,800 | 500 | — |
| Aave V3 Base | weETH | 100,000 | 45,000 | — | — |
| Aave V3 Base | syrupUSDC | 100,000,000 | 21,000,000 | — | — |
| Aave V3 Base | tBTC | 20 | 8 | — | — |
| Aave V3 Base | ezETH | 500 | 40 | — | — |
| Aave V3 Arbitrum | weETH | 70,000 | 59,000 | — | — |
| Aave V3 Arbitrum | LINK | 1,000,000 | 690,000 | — | — |
| Aave V3 Linea | ezETH | 7,900 | 510 | — | — |
| Aave V3 Optimism | rETH | 1,000 | 450 | — | — |
| Aave V3 Optimism | OP | 8,000,000 | 6,500,000 | — | — |
Next Steps
We will move forward and implement these updates via the Risk Steward process.
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.