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 751,200,000 to 902,000,000.
- Increase borrow cap for USDe from 475,800,000 to 571,000,000.
Aave V3 Monad:
- Increase borrow cap for USDC from 67,500,000 to 135,000,000.
USDe (Aave V3 Core)
USDe has reached 99.4% supply cap utilization (746,363,592 / 751,200,000) and 84.3% borrow cap utilization (400,999,581 / 475,800,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, July 18, 2026
The top twenty USDe suppliers run health factors between 1.01 and 13.08 with a median of 1.12, and all twenty carry outstanding debt. Eighteen borrow USDT against their USDe collateral and four borrow USDC, so the cohort holds stablecoin debt against stablecoin collateral held in E-Mode, where health factor stability tracks the USDe peg against the borrowed stablecoins.
Borrow Distribution
Source: LlamaRisk, July 18, 2026
The top twenty USDe borrowers run health factors between 1.00 and 2.26 with a median of 1.05, and all twenty carry outstanding debt. The cohort posts ETH-correlated collateral (WETH, weETH, and wstETH) and sUSDe against USDe and USDT debt, so health factor stability tracks the ETH price on the ETH-collateralized positions and the sUSDe to USDe exchange rate on the remainder.
Recommendation
We recommend raising the supply cap from 751,200,000 to 902,000,000 and raising the borrow cap from 475,800,000 to 571,000,000 on Aave V3 Core. Supply cap utilization stands at 99.4% and borrow cap utilization at 84.3%, landing at approximately 82.7% and 70.2% respectively post-change. The supply side is held predominantly as stablecoin collateral against stablecoin debt, and the borrow side is funded against ETH-correlated and sUSDe collateral.
USDC (Aave V3 Monad)
USDC has reached 93.6% borrow cap utilization (63,200,460 / 67,500,000) on the Aave V3 Monad instance.
Borrow Distribution
Source: LlamaRisk, July 18, 2026
The top twenty USDC borrowers run health factors between 1.01 and 2.10 with a median of 1.04, and all twenty carry outstanding debt. Fifteen post syrupUSDC as collateral against USDC debt, with eight also borrowing USDT0, so the dominant structure is stablecoin debt against a yield-accruing stablecoin collateral, where health factor stability tracks the syrupUSDC to USDC exchange rate.
Recommendation
We recommend raising the borrow cap from 67,500,000 to 135,000,000 on Aave V3 Monad. Borrow cap utilization stands at 93.6%, landing at approximately 46.8% post-change. The supply cap is held unchanged at 150,000,000, at approximately 48% utilization.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | USDe | 751,200,000 | 902,000,000 | 475,800,000 | 571,000,000 |
| Aave V3 Monad | USDC | 150,000,000 | — | 67,500,000 | 135,000,000 |
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.