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 PT-AUSD-8OCT2026 from 20,000,000 to 40,000,000.
- Reduce supply cap for sUSDe from 10,000,000 to 1,000,000.
Aave V3 Core:
- Increase supply cap for syrupUSDT from 50,000,000 to 100,000,000.
PT-AUSD-8OCT2026 (Aave V3 Monad)
PT-AUSD-8OCT2026 has reached 100.0% supply cap utilization (20,000,000 / 20,000,000) on the Aave V3 Monad instance.
Supply Distribution
Source: LlamaRisk, August 27, 2026
The charted PT-AUSD-8OCT2026 suppliers run health factors between 1.01 and 1.13 with a median of 1.03, and all carry outstanding debt. Borrowing is stablecoin denominated, with USDC the largest component alongside GHO and USDT0.
Liquidity
Source: LlamaRisk, August 27, 2026
Pendle AMM liquidity for the PT-AUSD-8OCT2026 pool stands at approximately 2.4M USD, composed of 1.8M USD in PT (76%) and 573.1K USD in SY (24%), with implied APY in the 6.5% to 7.0% range. The principal token reaches maturity on October 8, 2026, at which point it becomes redeemable at par against AUSD, so holders may exit through redemption in addition to the AMM.
Recommendation
We recommend raising the supply cap from 20,000,000 to 40,000,000 on Aave V3 Monad.
syrupUSDT (Aave V3 Core)
syrupUSDT has reached 100.0% supply cap utilization (49,991,388 / 50,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, August 27, 2026
The charted syrupUSDT suppliers run health factors between 1.02 and 3.31 with a median of 1.03, and most carry outstanding debt. Borrowing is concentrated in USDT held against syrupUSDT collateral under the syrupUSDT Stablecoins E-Mode category at LTV 90.0% and LT 92.0%, so the narrow health factor cluster reflects a position in which both legs are dollar denominated.
Recommendation
We recommend raising the supply cap from 50,000,000 to 100,000,000 on Aave V3 Core.
Cap Reductions
The following reserves have material idle headroom relative to current demand, and the proposed caps tighten that buffer.
sUSDe on Aave V3 Monad sits at 1.8% supply cap utilization (184,694 / 10,000,000). The proposed cap of 1,000,000 is approximately 5.41x current outstanding supply, landing at approximately 18.5% post-change cap utilization.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Aave V3 Monad | PT-AUSD-8OCT2026 | 20,000,000 | 40,000,000 |
| Aave V3 Monad | sUSDe | 10,000,000 | 1,000,000 |
| Aave V3 Core | syrupUSDT | 50,000,000 | 100,000,000 |
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.