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 Mantle:
- Increase supply cap for USDT0 from 250,000,000 to 312,500,000.
- Increase borrow cap for USDT0 from 225,000,000 to 281,250,000.
USDT0 (Aave V3 Mantle)
USDT0 has reached 97.7% supply cap utilization (244,232,892 / 250,000,000) and 88.3% borrow cap utilization (198,624,611 / 225,000,000) on the Aave V3 Mantle instance.
Supply Distribution
Source: LlamaRisk, June 17, 2026
The top USDT0 suppliers hold the asset on a spot basis with no offsetting debt, with supply highly concentrated, with the top three positions representing roughly 97% of the reserve. USDT0 is not enabled as collateral.
Borrow Distribution
Source: LlamaRisk, June 17, 2026
The top USDT0 borrowers maintain a median health factor of 1.03. Borrowing activity is predominantly concentrated in positions collateralized by syrupUSDT (54.2%) and sUSDe (41.1%), together representing over 95% of USDT0 debt exposure.
Recommendation
We recommend raising the supply cap from 250,000,000 to 312,500,000 and the borrow cap from 225,000,000 to 281,250,000 on Aave V3 Mantle. The supply cap currently sits at 97.7% utilization and the borrow cap at 88.3%, and the increases bring these to approximately 78% and 71% respectively.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Mantle | USDT0 | 250,000,000 | 312,500,000 | 225,000,000 | 281,250,000 |
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.