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 MegaETH:
- Increase borrow cap for USDm from 450,000,000 to 600,000,000.
Aave V3 Core:
- Increase supply cap for cbBTC from 16,500 to 22,000.
USDm (Aave V3 MegaETH)
USDm is currently at 86.6% borrow cap utilization (389,890,100 / 450,000,000) on the Aave V3 MegaETH instance.
Borrow Distribution
Source: LlamaRisk, May 11, 2026
The top twenty USDm borrowers carry health factors between 1.01 and 1.06 with a single supply and a single debt position each, consistent with the stablecoin loop using USDe collateral against USDm debt in stablecoin E-Mode.
Recommendation
Given the stablecoin loop structure on the USDe and USDm pair, the dollar-peg correlation that limits health factor deterioration in the cohort, and the 86.6% utilization on the existing 450,000,000 borrow cap, we recommend raising the borrow cap for USDm on Aave V3 MegaETH from 450,000,000 to 600,000,000. The supply cap remains unchanged at 1,000,000,000.
cbBTC (Aave V3 Core)
cbBTC has reached 98.3% supply cap utilization (16,217 / 16,500) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, May 11, 2026
The top twenty cbBTC suppliers run health factors between 1.06 and 4.90, all carrying borrow positions and several holding multiple collateral assets, consistent with cbBTC used as part of a multi-asset collateral basket, used for borrowing stablecoins.
Recommendation
Given the diversified collateral pattern across the supplier cohort, the substantial health factor buffer relative to liquidation thresholds, and the 98.3% utilization of the existing 16,500 cbBTC supply cap, we recommend raising the supply cap for cbBTC on Aave V3 Core from 16,500 to 22,000 cbBTC. The borrow cap remains unchanged at 1,440 cbBTC.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 MegaETH | USDm | 1,000,000,000 | — | 450,000,000 | 600,000,000 |
| Aave V3 Core | cbBTC | 16,500 | 22,000 | 1,440 | — |
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.