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 osETH from 110,000 to 123,000.
- Increase supply cap for weETH from 1,075,000 to 1,100,000.
Aave V3 X Layer:
- Increase borrow cap for xSOL from 14,000 to 17,100.
osETH (Aave V3 Core)
osETH has reached 94.4% supply cap utilization (103,855 / 110,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, June 15, 2026
The top osETH suppliers have a median health factor of 1.02. Borrowing activity remains highly concentrated in WETH, which accounts for nearly 100% of debt against osETH collateral, utilizing the ETH-correlated E-Mode category.
Recommendation
We recommend raising the supply cap for osETH from 110,000 to 123,000 on Aave V3 Core. The reserve is at 94.4% supply cap utilization with a supplier base that borrows WETH against osETH in the ETH-correlated E-Mode category, and the proposed cap lands at approximately 84.4% post-change utilization.
weETH (Aave V3 Core)
weETH has reached 96.1% supply cap utilization (1,033,055 / 1,075,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, June 15, 2026
The top weETH suppliers have a median health factor of 1.05. Borrowing activity remains highly concentrated in WETH, which accounts for approximately 94% of debt backed by weETH collateral on the V3 Ethereum Core instance, with these positions predominantly utilizing the ETH-correlated E-Mode category.
Recommendation
We recommend raising the supply cap for weETH from 1,075,000 to 1,100,000 on Aave V3 Core. The reserve is at 96.1% supply cap utilization with a supplier base dominated by WETH borrowing against weETH, and the proposed cap lands at approximately 93.9% post-change utilization.
xSOL (Aave V3 X Layer)
xSOL has reached 98.2% borrow cap utilization (13,751 / 14,000) on the Aave V3 X Layer instance.
Borrow Distribution
Source: LlamaRisk, June 15, 2026
The top xSOL borrowers have a median health factor of 1.38. Borrowing activity is predominantly concentrated in xSOL debt backed by USD₮0 collateral, with some positions utilizing a mix of collateral assets whose oracle prices are not correlated with xSOL.
Recommendation
We recommend raising the borrow cap for xSOL from 14,000 to 17,100 on Aave V3 X Layer. The reserve is at 98.2% borrow cap utilization, the proposed cap lands at approximately 80.4% post-change borrow cap utilization.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | osETH | 110,000 | 123,000 | - | - |
| Aave V3 Core | weETH | 1,075,000 | 1,100,000 | - | - |
| Aave V3 X Layer | xSOL | 110,000 | - | 14,000 | 17,100 |
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