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:
- Increase supply cap for PT-srUSDe-22OCT2026 from 10,000,000 to 20,000,000.
Aave V3 Polygon:
- Increase supply cap for WETH from 15,000 to 20,000.
Aave V3 Mantle:
- Increase supply cap for USDe from 40,000,000 to 80,000,000.
- Reduce borrow cap for USDe from 18,000,000 to 10,000,000.
Aave V3 Base:
- Increase supply cap for cbBTC from 3,200 to 4,000.
- Increase supply cap for cbETH from 50,000 to 60,000.
PT-srUSDe-22OCT2026 (Aave V3 Core)
PT-srUSDe-22OCT2026 has reached 92.1% supply cap utilization on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, October 7, 2026
The top suppliers have health factors ranging from 1.02 to 73.98, with a median of 1.07. USDC is the dominant borrowed asset by a wide margin, followed by USDT and USDe, all held against PT collateral within the PT-srUSDe E-Mode categories, so the health factor of the cohort is driven primarily by the PT’s discount to par.
Liquidity
Source: LlamaRisk, October 7, 2026
The primary trading venue is the Pendle AMM pool on Ethereum, which holds 3.89M in total liquidity, split 53% PT and 47% SY. Pool TVL has eased from approximately 4.6M in early August, while the implied APY has risen from around 4% to between 5.5% and 6% over the same period. The PT matures on October 22, 2026, after which it becomes redeemable at par against the underlying, so the exit at maturity does not depend on secondary market depth.
Recommendation
We recommend raising the supply cap from 10M to 20M on Aave V3 Core, which places the reserve at approximately 46.1% post-change cap utilization.
WETH (Aave V3 Polygon)
WETH is currently at 89.2% supply cap utilization on the Aave V3 Polygon instance.
Supply Distribution
Source: LlamaRisk, October 7, 2026
The top suppliers run health factors between 1.55 and 13.04, with a median of 2.26, and 19 of 20 carry outstanding debt. Debt is denominated predominantly in stablecoins, with USDC the most widely borrowed, followed by USDT0, and WBTC is the most common additional collateral, so the health factor of the cohort tracks the ETH price.
Recommendation
We recommend raising the supply cap from 15,000 to 20,000 on Aave V3 Polygon, which places the reserve at approximately 66.9% post-change cap utilization. The borrow cap is unchanged.
USDe (Aave V3 Mantle)
USDe is currently at 86.0% supply cap utilization on the Aave V3 Mantle instance.
Supply Distribution
Source: LlamaRisk, October 7, 2026
Supply is concentrated in a small number of positions, which run health factors between 1.00 and 1.07 with a median of 1.02, and 7 of 9 carry outstanding debt. Debt is denominated almost entirely in USDT0 and is held against USDe and sUSDe collateral within the stablecoin E-Mode categories. USDe is priced through the USDT/USD feed, the same feed that prices the USDT0 debt, so the liquidation risk is low and dependent on the incentive and borrow rate spread.
Recommendation
We recommend raising the supply cap from 40M to 80M on Aave V3 Mantle, which places the reserve at approximately 43.0% post-change cap utilization. Outstanding USDe borrowing stands at 2,433 against the 18M borrow cap, and we recommend reducing the borrow cap to 10M, which remains well above current borrowing.
cbBTC (Aave V3 Base)
cbBTC has reached 90.6% supply cap utilization on the Aave V3 Base instance.
Supply Distribution
Source: LlamaRisk, October 7, 2026
Supply is broadly distributed, and the top suppliers run health factors between 1.24 and 3.43, with a median of 2.10, with all 20 carrying outstanding debt. USDC is the dominant borrowed asset, with WETH debt in a minority of positions, so the health factor of the cohort tracks the BTC price.
Recommendation
We recommend raising the supply cap from 3,200 to 4,000 on Aave V3 Base, which places the reserve at approximately 72.5% post-change cap utilization. The borrow cap is unchanged.
cbETH (Aave V3 Base)
cbETH has reached 96.8% supply cap utilization on the Aave V3 Base instance.
Supply Distribution
Source: LlamaRisk, October 7, 2026
Supply is concentrated in a small number of positions, which run health factors between 1.02 and 17.23 with a median of 1.27, and all 20 carry outstanding debt. WETH is the dominant borrowed asset by a wide margin, with USDC second, and the largest positions hold cbETH against WETH within the ETH-correlated E-Mode categories, so their health factors depend on the cbETH to ETH exchange rate.
Recommendation
We recommend raising the supply cap from 50,000 to 60,000 on Aave V3 Base, which places the reserve at approximately 80.7% post-change cap utilization.
Specification
Supply Caps
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Aave V3 Core | PT-srUSDe-22OCT2026 | 10,000,000 | 20,000,000 |
| Aave V3 Polygon | WETH | 15,000 | 20,000 |
| Aave V3 Mantle | USDe | 40,000,000 | 80,000,000 |
| Aave V3 Base | cbBTC | 3,200 | 4,000 |
| Aave V3 Base | cbETH | 50,000 | 60,000 |
Borrow Caps
| Instance | Asset | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|
| Aave V3 Mantle | USDe | 18,000,000 | 10,000,000 |
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.