# Risk Stewards: Supply and Borrow Cap Increases on Aave V3 / 2026.11.08

**URL:** <https://governance.aave.com/t/risk-stewards-supply-and-borrow-cap-increases-on-aave-v3-2026-11-08/26107>\
**Category:** Risk\
**Created:** [November 8, 2026, 10:12am UTC](https://governance.aave.com/t/risk-stewards-supply-and-borrow-cap-increases-on-aave-v3-2026-11-08/26107 "2026-11-08T10:12:08Z")\
**Posts on this page:** 1\
**Page:** 1

<div class="post-metadata">

**Author:** ![LlamaRisk](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/llamarisk/32/12865_2.png) [@LlamaRisk](https://governance.aave.com/u/LlamaRisk)\
**Post date:** [November 8, 2026, 10:12am UTC](https://governance.aave.com/t/risk-stewards-supply-and-borrow-cap-increases-on-aave-v3-2026-11-08/26107/1 "2026-11-08T10:12:08Z")

</div>

## 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 borrow cap for USDC from 2,600,000,000 to 2,750,000,000.
- Increase supply cap for USDe from 550,000,000 to 750,000,000.

## USDC (Aave V3 Core)

USDC has reached 99.0% borrow cap utilization (2.57B / 2.6B) on the Aave V3 Core instance.

### Borrow Distribution

 ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/f/f06ffdebd12bfb5a76662cc3faabcc48a0f32b9b.png)  
_Source: LlamaRisk, November 8, 2026_

The top 20 USDC borrowers run health factors between 1.02 and 3.07 with a median of 1.76, and the largest borrower accounts for about 14% of outstanding debt. Collateral behind these positions is mainly ETH and BTC assets, with 5 of the 20 posting WETH, 5 weETH, 4 wstETH, 4 cbBTC, and 3 WBTC, alongside 3 posting USDe and 3 sUSDe, so HF in the cohort tracks the ETH and BTC prices and, on the USDe and sUSDe positions, the exchange rate of those assets against the stablecoin debt.

### Recommendation

We recommend raising the borrow cap from 2.6B to 2.75B on Aave V3 Core, which places the reserve at approximately 93.6% post-change borrow cap utilization. The proposed borrow cap corresponds to 96.6% reserve utilization at current supply, above the 94% optimal point.

## USDe (Aave V3 Core)

USDe has reached 100.0% supply cap utilization (550M / 550M) on the Aave V3 Core instance.

### Supply Distribution

 ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/b/bd1eb8d026ccdfa737f945a83d14ccb2b8196918.png)  
_Source: LlamaRisk, November 8, 2026_

The top 20 USDe suppliers hold about 99% of the supply, with 18 of 20 carrying debt at health factors between 1.02 and 2.30 and a median of 1.03. Supply is concentrated, with the largest supplier at about 61% and the top 5 at about 91%, and the debt is denominated almost entirely in stablecoins (USDC and USDT).

### Recommendation

We recommend raising the supply cap from 550M to 750M on Aave V3 Core, which places the reserve at approximately 73.3% post-change supply cap utilization.

## Specification

### Supply Caps

| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
| --- | --- | --- | --- |
| Aave V3 Core | USDe | 550,000,000 | 750,000,000 |

### Borrow Caps

| Instance | Asset | Current Borrow Cap | Recommended Borrow Cap |
| --- | --- | --- | --- |
| Aave V3 Core | USDC | 2,600,000,000 | 2,750,000,000 |

## Next Steps

We will move forward and implement these updates via the Risk Steward process. The implemented changes can be reviewed on the [LlamaRisk Risk Stewards Dashboard](https://dashboard.llamarisk.com/protocols/aave/risk-parameter-updates).

## 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.