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 USDe from 626,000,000 to 751,200,000.
- Increase borrow cap for USDe from 366,000,000 to 475,800,000.
Aave V3 Mantle:
- Increase supply cap for FBTC from 50 to 100.
Aave V3 Base:
- Increase supply cap for cbETH from 39,900 to 50,000.
USDe (Aave V3 Core)
USDe has reached 98.0% supply cap utilization (613,233,329 / 626,000,000) and 91.8% borrow cap utilization (336,057,430 / 366,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, July 14, 2026
The top USDe suppliers run health factors between 1.01 and 13.08 with a median of 1.09, with seventeen of the nineteen listed suppliers carrying outstanding debt. Fifteen borrow USDT and four borrow USDC against the USDe collateral, so the cohort holds stablecoin debt against a stablecoin.
Borrow Distribution
Source: LlamaRisk, July 14, 2026
The top twenty USDe borrowers run health factors between 1.01 and 2.31 with a median of 1.24, with sUSDe the most common collateral (nine of twenty) followed by wstETH, WETH, and weETH. The sUSDe-collateralized positions pair collateral and debt that reprice together, which supports the tight HF cluster.
Recommendation
We recommend raising the supply cap from 626,000,000 to 751,200,000 and the borrow cap from 366,000,000 to 475,800,000 on Aave V3 Core. The supply cap sits at 98.0% utilization and the borrow cap at 91.8%; the raises land at approximately 81.6% supply and 70.6% borrow cap utilization post-change.
FBTC (Aave V3 Mantle)
FBTC is currently at 85.3% supply cap utilization (42.65 / 50) on the Aave V3 Mantle instance. The reserve is non-borrowable and provides collateral value through the FBTC Stablecoins E-Mode (LTV 75.0%, LT 79.0%).
Supply Distribution
Source: LlamaRisk, July 14, 2026
The FBTC market is dominated by one user with a health factor of 1.48. USDT0 is the dominant borrowed asset, so the cohort holds stablecoin debt against FBTC collateral and health factor stability tracks the BTC price. This raise has been enabled by improved DEX liquidity on Mantle.
Recommendation
We recommend raising the supply cap from 50 to 100 on Aave V3 Mantle. Utilization stands at 85.3%, and the new cap lands at approximately 42.6% post-change utilization.
cbETH (Aave V3 Base)
cbETH has reached 100.0% supply cap utilization (39,899 / 39,900) on the Aave V3 Base instance.
Supply Distribution
Source: LlamaRisk, July 14, 2026
The top cbETH suppliers run health factors between 1.02 and 2.28 with a median of 1.08, and all nineteen listed suppliers carry outstanding debt. Fourteen borrow WETH against the cbETH collateral and five borrow USDC, so the dominant structure is an ETH-correlated pair whose HF stability tracks the cbETH/WETH spread.
Recommendation
We recommend raising the supply cap from 39,900 to 50,000 on Aave V3 Base. The cap is fully utilized, and the raise lands at approximately 79.8% post-change utilization; the tight HF cluster reflects collateral and debt that reprice together in the dominant cbETH/WETH pairing.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | USDe | 626,000,000 | 751,200,000 | 366,000,000 | 475,800,000 |
| Aave V3 Mantle | FBTC | 50 | 100 | — | — |
| Aave V3 Base | cbETH | 39,900 | 50,000 | — | — |
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.