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 Base:
- Increase supply cap for cbETH from 29,900 to 39,900.
Aave V3 Avalanche:
- Increase borrow cap for WAVAX from 10,055,500 to 11,700,000.
Aave V3 Core:
-
Increase supply cap for wstETH from 810,000 to 891,000.
-
Increase supply cap for USDe from 430,000,000 to 516,000,000.
-
Increase supply cap for syrupUSDT from 13,600,000 to 27,200,000.
cbETH (Aave V3 Base)
cbETH has reached 99.9% supply cap utilization (29,858 / 29,900) on the Aave V3 Base instance.
Supply Distribution
Source: LlamaRisk, June 24, 2026
The top twenty cbETH suppliers run health factors between 1.02 and 10.76 with a median of 1.14, and each carries outstanding debt. Most borrow WETH against cbETH collateral, an ETH-correlated pairing whose health factor tracks the spread between cbETH and ETH, which reduces liquidation risk.
Recommendation
We recommend raising the supply cap for cbETH from 29,900 to 39,900 on Aave V3 Base. cbETH sits at 99.9% supply cap utilization, and the new cap brings post-change utilization to approximately 74.8%.
WAVAX (Aave V3 Avalanche)
WAVAX has reached 99.9% borrow cap utilization (10,047,502 / 10,055,500) on the Aave V3 Avalanche instance.
Borrow Distribution
Source: LlamaRisk, June 24, 2026
The top twenty WAVAX borrowers run health factors between 1.00 and 2.10 with a median of 1.04, and all carry WAVAX debt. Most post sAVAX as collateral, an AVAX-correlated position whose tight health-factor cluster tracks the spread between sAVAX and AVAX, with the exception of the main borrower in the market which is using BTC.b and WETH.e as collateral with a conservative HF.
Recommendation
We recommend raising the borrow cap for WAVAX from 10,055,500 to 11,700,000 on Aave V3 Avalanche. WAVAX sits at 99.9% borrow cap utilization, and the new cap brings post-change utilization to approximately 85.9%, with the supply cap held unchanged at 18,160,000.
wstETH (Aave V3 Core)
wstETH has reached 96.5% supply cap utilization (782,006 / 810,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, June 24, 2026
The top twenty wstETH suppliers run health factors between 1.03 and 14.99 with a median of 1.50, with 19 of 20 carrying debt. The largest positions by value borrow WETH against wstETH, an ETH-correlated pairing whose health factor tracks the spread between wstETH and ETH, while a larger number borrow USDT and USDC, so the cohort mixes ETH-correlated and stablecoin borrowing against the LST.
Recommendation
We recommend raising the supply cap for wstETH from 810,000 to 891,000 on Aave V3 Core. wstETH sits at 96.5% supply cap utilization, and the new cap brings post-change utilization to approximately 87.8%.
USDe (Aave V3 Core)
USDe has reached 96.4% supply cap utilization (414,666,113 / 430,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, June 24, 2026
The top twenty USDe suppliers run health factors between 1.02 and 7.17 with a median of 1.14, with 17 of 20 carrying debt. Most borrow USDT and USDC against USDe collateral in stablecoin E-Mode.
Recommendation
We recommend raising the supply cap for USDe from 430,000,000 to 516,000,000 on Aave V3 Core. USDe sits at 96.4% supply cap utilization, and the new cap brings post-change utilization to approximately 80.4%, with the borrow cap held unchanged at 290,000,000.
syrupUSDT (Aave V3 Core)
syrupUSDT is currently at 87.2% supply cap utilization (11,861,446 / 13,600,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, June 24, 2026
The top syrupUSDT suppliers run health factors between 1.00 and 2.74 with a median of 1.11, and all carry outstanding debt. Most borrow USDT against syrupUSDT collateral in the syrupUSDT Stablecoins E-Mode.
Recommendation
We recommend doubling the supply cap for syrupUSDT from 13,600,000 to 27,200,000 on Aave V3 Core. syrupUSDT sits at 87.2% supply cap utilization, and the new cap brings post-change utilization to approximately 43.6%.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Base | cbETH | 29,900 | 39,900 | — | — |
| Aave V3 Avalanche | WAVAX | 18,160,000 | — | 10,055,500 | 11,700,000 |
| Aave V3 Core | wstETH | 810,000 | 891,000 | — | — |
| Aave V3 Core | USDe | 430,000,000 | 516,000,000 | 290,000,000 | — |
| Aave V3 Core | syrupUSDT | 13,600,000 | 27,200,000 | — | — |
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.