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 Sonic:
- Reduce supply cap for USDC from 5,200,000 to 2,170,000.
- Reduce borrow cap for USDC from 4,600,000 to 1,050,000.
- Reduce supply cap for WETH from 1,800 to 556.
- Reduce borrow cap for WETH from 500 to 97.
- Reduce supply cap for stS from 100,000,000 to 50,300,000.
- Reduce supply cap for wS from 220,000,000 to 59,100,000.
- Reduce borrow cap for wS from 130,000,000 to 36,100,000.
Aave V3 Aptos:
- Reduce supply cap for USDt from 4,500,000 to 1,040,000.
- Reduce borrow cap for USDt from 1,200,000 to 448,000.
- Reduce supply cap for APT from 900,000 to 415,000.
- Reduce borrow cap for APT from 150,000 to 8,370.
- Reduce supply cap for sUSDe from 500,000 to 2,600.
- Reduce supply cap for USDC from 4,200,000 to 144,000.
- Reduce borrow cap for USDC from 150,000 to 33,000.
Aave V3 Core:
- Reduce supply cap for PT-srUSDe-25JUN2026 from 100,000,000 to 1.
Cap Reductions
These changes reduce the protocol’s maximum exposure to the Aave V3 Sonic and Aave V3 Aptos markets. Each cap is set to approximately 0.67x current outstanding, below present balances, so new supply and borrow are blocked while existing positions remain unaffected and can be unwound at the holder’s discretion. Current outstanding balances and cap utilization are shown below; the resulting caps appear in the Specification.
| Instance | Asset | Supplied | Supply util | Borrowed | Borrow util |
|---|---|---|---|---|---|
| Aave V3 Sonic | USDC | 3,239,392 | 62.3% | 1,576,001 | 34.3% |
| Aave V3 Sonic | WETH | 830 | 46.1% | 146 | 29.2% |
| Aave V3 Sonic | stS | 75,191,627 | 75.2% | — | — |
| Aave V3 Sonic | wS | 88,221,957 | 40.1% | 53,943,713 | 41.5% |
| Aave V3 Aptos | USDt | 1,563,513 | 34.7% | 669,892 | 55.8% |
| Aave V3 Aptos | APT | 619,797 | 68.9% | 12,506 | 8.3% |
| Aave V3 Aptos | sUSDe | 3,885 | 0.8% | — | — |
| Aave V3 Aptos | USDC | 215,779 | 5.1% | 49,384 | 32.9% |
stS on Aave V3 Sonic and sUSDe on Aave V3 Aptos have borrowing disabled and are reduced on the supply side only. sUSDe and USDC on Aave V3 Aptos sit well below their current supply caps (0.8% and 5.1% utilization), so their proportional reductions are larger than on the other reserves.
PT-srUSDe-25JUN2026 on Aave V3 Core matured on 2026-06-25 and is redeemable at par against srUSDe. Its supply cap is set to 1, blocking new deposits while existing holders redeem at par; the reserve is collateral-only.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Sonic | USDC | 5,200,000 | 2,170,000 | 4,600,000 | 1,050,000 |
| Aave V3 Sonic | WETH | 1,800 | 556 | 500 | 97 |
| Aave V3 Sonic | stS | 100,000,000 | 50,300,000 | — | — |
| Aave V3 Sonic | wS | 220,000,000 | 59,100,000 | 130,000,000 | 36,100,000 |
| Aave V3 Aptos | USDt | 4,500,000 | 1,040,000 | 1,200,000 | 448,000 |
| Aave V3 Aptos | APT | 900,000 | 415,000 | 150,000 | 8,370 |
| Aave V3 Aptos | sUSDe | 500,000 | 2,600 | — | — |
| Aave V3 Aptos | USDC | 4,200,000 | 144,000 | 150,000 | 33,000 |
| Aave V3 Core | PT-srUSDe-25JUN2026 | 100,000,000 | 1 | — | — |
Next Steps
We will move forward and implement these updates via the Risk Steward process, with the updates on Aptos handled by the protocol guardian multisig.
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.