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 Monad:
- Increase supply cap for USDe from 40,000,000 to 80,000,000.
- Reduce supply cap for sUSDe from 40,000,000 to 10,000,000.
Aave V3 Core:
- Increase supply cap for BTC.b from 80 to 160.
USDe (Aave V3 Monad)
USDe has reached 100.0% supply cap utilization (39,999,127 / 40,000,000) on the Aave V3 Monad instance.
Supply Distribution
Source: LlamaRisk, August 7, 2026
The top USDe suppliers run health factors between 1.02 and 2.34 with a median of 1.11, and five of the seven carry outstanding debt. Four borrow USDT0 and three borrow USDC against USDe collateral held in the stablecoin E-Mode category at LTV 90.0% and LT 92.0%, so health factor stability tracks the USDe peg.
Recommendation
We recommend raising the supply cap from 40,000,000 to 80,000,000 on Aave V3 Monad. The reserve is fully subscribed at its current ceiling, and the proposed cap lands at approximately 50.0% post-change cap utilization. The borrow cap is held unchanged at 36,000,000, currently at 29.2% utilization.
BTC.b (Aave V3 Core)
BTC.b is currently at 82.0% supply cap utilization (65.60 / 80) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, August 7, 2026
The top BTC.b suppliers run health factors between 1.15 and 2.23 with a median of 1.51, and nine of the ten carry outstanding debt. Borrowing is denominated entirely in stablecoins and led by USDe, so the cohort holds stablecoin borrowings against BTC.b collateral whose health factor stability tracks the BTC price.
Recommendation
We recommend raising the supply cap from 80 to 160 on Aave V3 Core. The reserve stands at 82.0% supply cap utilization and the proposed cap lands at approximately 41.0% post-change cap utilization.
Cap Reductions
The following reserve has unused headroom relative to current demand, and the proposed cap tightens that buffer.
sUSDe on Aave V3 Monad sits at 0.4% supply cap utilization (151,190 / 40,000,000). The proposed cap of 10,000,000 is approximately 66.14x current outstanding supply, landing at approximately 1.5% post-change cap utilization.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Monad | USDe | 40,000,000 | 80,000,000 | 36,000,000 | - |
| Aave V3 Core | BTC.b | 80 | 160 | - | - |
| Aave V3 Monad | sUSDe | 40,000,000 | 10,000,000 | - | - |
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.