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 borrow cap for USDtb from 140,000,000 to 182,000,000.
Aave V3 Base:
- Increase supply cap for cbETH from 15,000 to 23,000.
USDtb (Aave V3 Core)
USDtb has reached 100.0% borrow cap utilization (139,997,505 / 140,000,000) on the Aave V3 Core instance.
Borrow Distribution
Source: LlamaRisk, May 25, 2026
The top USDtb borrowers carry health factors between 1.01 and 2.64 with a median of 1.46. BTC variants dominate the collateral side (twelve users hold WBTC, four hold tBTC, two each hold cbBTC and LBTC), with USDtb borrowed alongside other stablecoins against those positions; HF degradation in the cohort depends on the BTC-to-stable price spread.
Recommendation
We recommend raising the borrow cap from 140,000,000 to 182,000,000. The borrow leg is fully saturated, and the borrower profile is dominated by BTC-collateralised stablecoin carries where the dominant risk vector is BTC volatility.
cbETH (Aave V3 Base)
cbETH is currently at 84.2% supply cap utilization (12,636 / 15,000) on the Aave V3 Base instance.
Supply Distribution
Source: LlamaRisk, May 25, 2026
Eighteen of the top twenty cbETH suppliers carry outstanding debt at health factors between 1.03 and 16.77, median 1.53, alongside two spot suppliers. Six users borrow WETH against cbETH ($24.9M aggregate) and twelve borrow USDC ($3.2M aggregate); the WETH-debt cohort dominates by USD exposure, making the supplier base predominantly an ETH-correlated position whose HF stability depends on the cbETH-vs-WETH price spread.
Recommendation
We recommend raising the supply cap from 15,000 to 23,000 cbETH on Aave V3 Base. The current cap sits at 84% utilization, the proposed value targets approximately $55M at the current oracle price, and the dominant ETH-correlated borrowing pattern maintains HF stability under normal cbETH-vs-WETH spread conditions. The borrow cap is held unchanged at 1,010 cbETH (22% utilized).
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | USDtb | 250,000,000 | — | 140,000,000 | 182,000,000 |
| Aave V3 Base | cbETH | 15,000 | 23,000 | 1,010 | — |
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.