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 Polygon:
- Reduce supply cap for WPOL from 105,000,000 to 101,000,000.
- Reduce supply cap for USDC (native) from 100,000,000 to 50,000,000.
- Reduce supply cap for USDT0 from 90,000,000 to 45,000,000.
- Reduce supply cap for USDC.e (bridged) from 12,000,000 to 4,390,000.
- Reduce supply cap for DAI from 11,800,000 to 3,890,000.
- Reduce supply cap for MaticX from 30,000,000 to 9,330,000.
- Reduce supply cap for WETH from 32,000 to 15,000.
- Reduce supply cap for LINK from 615,000 to 220,000.
- Reduce supply cap for AAVE from 60,000 to 25,300.
- Reduce supply cap for wstETH from 11,500 to 6,000.
- Reduce supply cap for WBTC from 1,400 to 1,000.
- Reduce borrow cap for USDC (native) from 48,080,000 to 45,000,000.
- Reduce borrow cap for USDT0 from 85,000,000 to 40,500,000.
- Reduce borrow cap for USDC.e (bridged) from 8,319,000 to 3,950,000.
- Reduce borrow cap for DAI from 7,287,000 to 3,500,000.
Aave V3 BNB:
- Increase borrow cap for WBNB from 12,000 to 15,600.
WBNB (Aave V3 BNB)
WBNB has reached 96.8% borrow cap utilization (11,611 / 12,000) on the Aave V3 BNB instance.
Borrow Distribution
Source: LlamaRisk, June 10, 2026
The top WBNB borrowers have a median health factor of 1.6. WBNB debt is predominantly borrowed against USDT and WBTC collateral, which account for 71.1% and 20.2% of the total collateral backing these positions, respectively.
Recommendation
Given borrow cap utilization at 96.8% and a borrower base with health factors clustered above the liquidation threshold at a median of 1.61, we recommend increasing the borrow cap from 12,000 to 15,600, landing at approximately 74% post-change borrow cap utilization.
Cap Reductions
The following supply cap reductions are proposed primarily due to the limited onchain liquidity available for collateral-enabled assets on Polygon and the continued decline in their supply on Aave. Eight of the eleven active reserves on Aave V3 Polygon have their supply caps reduced to approximately 1.20x current outstanding supply, restoring roughly 20% headroom and landing each at approximately 83% post-change supply cap utilization. The supply caps for USDC, USDT0, and wstETH are reduced by approximately half, a smaller reduction that leaves these three reserves at approximately 58% to 70% post-change supply cap utilization. Borrow caps on USDC, USDC.e, USDT0, and DAI are reduced in step so that each remains at or below 0.9x the new supply cap, with all four lowered caps staying above current outstanding borrow.
Source: LlamaRisk, June 10, 2026
Specification
Caps
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Polygon | WPOL | 105,000,000 | 101,000,000 | — | — |
| Aave V3 Polygon | USDC | 100,000,000 | 50,000,000 | 48,080,000 | 45,000,000 |
| Aave V3 Polygon | USDT0 | 90,000,000 | 45,000,000 | 85,000,000 | 40,500,000 |
| Aave V3 Polygon | USDC.e | 12,000,000 | 4,390,000 | 8,319,000 | 3,950,000 |
| Aave V3 Polygon | DAI | 11,800,000 | 3,890,000 | 7,287,000 | 3,500,000 |
| Aave V3 Polygon | MaticX | 30,000,000 | 9,330,000 | — | — |
| Aave V3 Polygon | WETH | 32,000 | 15,000 | 11,000 | — |
| Aave V3 Polygon | LINK | 615,000 | 220,000 | — | — |
| Aave V3 Polygon | AAVE | 60,000 | 25,300 | — | — |
| Aave V3 Polygon | wstETH | 11,500 | 6,000 | — | — |
| Aave V3 Polygon | WBTC | 1,400 | 1,000 | 76 | — |
| Aave V3 BNB | WBNB | 160,000 | — | 12,000 | 15,600 |
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.