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 Mantle:
- Reduce supply cap for WETH from 33,900 to 10,200.
- Reduce borrow cap for WETH from 30,500 to 9,180.
Cap Reductions
WETH on Aave V3 Mantle sits at 43.3% supply cap utilization (14,677 / 33,900) and 41.8% borrow cap utilization (12,744 / 30,500). The current caps follow the Risk Stewards: Supply and Borrow Cap Changes on Aave V3 / 2026.05.29, which reduced them to halt growth as Mantle WETH liquidity thinned. Outstanding supply has since declined from 39,883 to 14,677 WETH, leaving the supply cap well above current balances and reopening roughly 19,000 WETH of capacity for new deposits.
The proposed supply cap of 10,200 is approximately 70% of current outstanding supply and roughly 30% below it, closing that reopened capacity and halting new supply while existing positions repay. The borrow cap is reduced to 9,180 in step with the supply cap, which similarly halts new borrowing. The liquidity and configuration context for the wind-down is set out in the May 29 recommendation.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Mantle | WETH | 33,900 | 10,200 | 30,500 | 9,180 |
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.