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 syrupUSDT from 1,700,000 to 3,400,000.
- Increase supply cap for USDe from 325,000,000 to 430,000,000.
- Increase supply cap for sUSDe from 225,000,000 to 300,000,000.
- Reduce supply cap for LBTC from 3,000 to 2,240.
- Reduce supply cap for ezETH from 20,000 to 6,690.
- Reduce supply cap for eBTC from 400 to 134.
- Reduce supply cap for LINK from 15,000,000 to 11,400,000.
Aave V3 Base:
- Increase supply cap for cbETH from 7,500 to 15,000.
Aave V3 Plasma:
- Reduce supply cap for PT-sUSDE-18JUN2026 from 450,000,000 to 260,000,000.
syrupUSDT (Aave V3 Core)
syrupUSDT has reached 95.4% supply cap utilization (1,621,714 / 1,700,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, May 21, 2026
The top seven syrupUSDT suppliers run health factors between 1.02 and 1.90 with a median of 1.15, and six of seven carry debt. Four borrow GHO against syrupUSDT collateral and two borrow USDT, so the supplier base concentrates on stablecoin-debt positions paired with the stable-yielding collateral.
Recommendation
Given near-full cap utilization and a supplier base dominated by stablecoin-debt positions against stable-yielding collateral, we recommend doubling the supply cap from 1,700,000 to 3,400,000.
cbETH (Aave V3 Base)
cbETH has reached 100.0% supply cap utilization (7,498 / 7,500) on the Aave V3 Base instance.
Supply Distribution
Source: LlamaRisk, May 21, 2026
The top twenty cbETH suppliers run health factors between 1.03 and 16.67 with a median of 1.52, and 18 of 20 carry debt. Thirteen borrow USDC against cbETH collateral and five borrow WETH, so the supplier base mixes stablecoin borrowing and ETH-correlated borrowing rather than concentrating on a single asset.
Recommendation
Given full cap utilization and a mixed-debt collateral profile, we recommend doubling the supply cap from 7,500 to 15,000.
USDe (Aave V3 Core)
USDe has reached 99.0% supply cap utilization (321,857,532 / 325,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, May 21, 2026
The top twenty USDe suppliers run health factors between 1.02 and 9.05 with a median of 1.34, and 15 of 20 carry debt. Eleven borrow USDT against USDe and sUSDe collateral, six borrow USDC, and one borrows USDtb, so the supplier base concentrates on stablecoin-debt against correlated stablecoin collateral; HF degradation in the cohort depends on the USDe-vs-USD peg spread rather than directional risk.
Recommendation
Given near-full cap utilization and a supplier base concentrated in correlated stablecoin pairs, we recommend increasing the supply cap from 325,000,000 to 430,000,000.
sUSDe (Aave V3 Core)
sUSDe has reached 85.7% supply cap utilization (192,763,008 / 225,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, May 21, 2026
The top twenty sUSDe suppliers run health factors between 1.01 and 1.86 with a median of 1.10, and all twenty carry debt. Fourteen borrow USDT against sUSDe collateral and eight borrow USDC; twelve hold USDe alongside sUSDe as the underlying collateral base. The supplier base concentrates on stablecoin-debt against the sUSDe and USDe collateral basket; HF degradation is unlikely on the sUSDe-vs-USD as the underlying asset is the same.
Recommendation
Given elevated cap utilization and a supplier base operating correlated stablecoin pairs with USDe held alongside sUSDe as collateral, we recommend increasing the supply cap from 225,000,000 to 300,000,000.
Cap Reductions
LBTC on Aave V3 Core sits at 63.5% supply cap utilization (1,905.92 / 3,000). The proposed cap of 2,240 is approximately 1.18x current outstanding supply, landing at approximately 85.1% post-change cap utilization.
ezETH on Aave V3 Core sits at 28.4% supply cap utilization (5,687 / 20,000). The proposed cap of 6,690 is approximately 1.18x current outstanding supply, landing at approximately 85.0% post-change cap utilization.
eBTC on Aave V3 Core sits at 28.6% supply cap utilization (114.25 / 400). The proposed cap of 134 is approximately 1.17x current outstanding supply, landing at approximately 85.3% post-change cap utilization.
LINK on Aave V3 Core sits at 64.8% supply cap utilization (9,722,402 / 15,000,000). The proposed cap of 11,400,000 is approximately 1.17x current outstanding supply, landing at approximately 85.3% post-change cap utilization.
PT-sUSDE-18JUN2026 on Aave V3 Plasma sits at 46.3% supply cap utilization (208,431,103 / 450,000,000). The proposed cap of 260,000,000 is approximately 1.25x current outstanding supply, landing at approximately 80.2% post-change cap utilization.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Aave V3 Core | syrupUSDT | 1,700,000 | 3,400,000 |
| Aave V3 Core | USDe | 325,000,000 | 430,000,000 |
| Aave V3 Core | sUSDe | 225,000,000 | 300,000,000 |
| Aave V3 Core | LBTC | 3,000 | 2,240 |
| Aave V3 Core | ezETH | 20,000 | 6,690 |
| Aave V3 Core | eBTC | 400 | 134 |
| Aave V3 Core | LINK | 15,000,000 | 11,400,000 |
| Aave V3 Base | cbETH | 7,500 | 15,000 |
| Aave V3 Plasma | PT-sUSDE-18JUN2026 | 450,000,000 | 260,000,000 |
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.