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 PT-srUSDe-22OCT2026 from 25,000,000 to 50,000,000.
Aave V3 Monad:
- Increase supply cap for USDT0 from 100,000,000 to 200,000,000.
- Increase borrow cap for USDT0 from 100,000,000 to 180,000,000.
PT-srUSDe-22OCT2026 (Aave V3 Core)
PT-srUSDe-22OCT2026 has reached 98.3% supply cap utilization (24,585,380 / 25,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, July 15, 2026
The top PT-srUSDe-22OCT2026 suppliers run health factors between 1.00 and 1.18 with a median of 1.03, with the majority carrying outstanding debt, with roughly 60% of the supply held by one user. Depositors borrow USDe against PT-srUSDe collateral within the PT-srUSDe E-Mode, so health factor stability tracks the PT-srUSDe price relative to its USDe debt.
Liquidity
Source: LlamaRisk, July 15, 2026
The Pendle AMM pool for PT-srUSDe-22OCT2026 holds approximately 5.66 million USD in liquidity, composed of 26% PT and 74% SY, with the PT maturing on October 22, 2026.
Recommendation
We recommend raising the supply cap from 25,000,000 to 50,000,000 on Aave V3 Core. The reserve stands at 98.3% supply cap utilization, and the increase brings post-change utilization to approximately 49%. The reserve remains non-borrowable.
USDT0 (Aave V3 Monad)
USDT0 has reached 98.8% supply cap utilization (98,824,141 / 100,000,000) and 61.4% borrow cap utilization (61,439,956 / 100,000,000) on the Aave V3 Monad instance.
Supply Distribution
Source: LlamaRisk, July 15, 2026
The top USDT0 suppliers hold the asset predominantly on a spot basis with no offsetting debt, reflecting its use as a base stablecoin deposit on the Aave V3 Monad market. Supply is concentrated in a small number of wallets.
Borrow Distribution
Source: LlamaRisk, July 15, 2026
The top USDT0 borrowers run health factors between 1.01 and 1.12 with a median of 1.02, all carrying outstanding debt. They borrow USDT0 predominantly against syrupUSDC collateral within the stablecoin E-Mode, so health factor stability tracks the syrupUSDC price relative to the stablecoin debt.
Recommendation
We recommend raising the supply cap from 100,000,000 to 200,000,000 and the borrow cap from 100,000,000 to 180,000,000 on Aave V3 Monad. The reserve stands at 98.8% supply cap utilization and 61.4% borrow cap utilization, and the increases bring post-change utilization to approximately 49% and 34% respectively.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | PT-srUSDe-22OCT2026 | 25,000,000 | 50,000,000 | — | — |
| Aave V3 Monad | USDT0 | 100,000,000 | 200,000,000 | 100,000,000 | 180,000,000 |
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.