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 USDtb from 250,000,000 to 302,000,000.
- Increase supply cap for USDT from 2,600,000,000 to 2,900,000,000.
USDtb (Aave V3 Core)
USDtb has reached 96.3% supply cap utilization (240,853,768 / 250,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, May 26, 2026
USDtb supply is highly concentrated, with the largest supplier (a wallet controlled by Ethena) holding approximately 87% of the supplied total and the top three accounting for approximately 97%. The reserve is not enabled as collateral, so it is supplied as a yield-bearing deposit and the elevated cap utilization reflects direct deposit demand.
Recommendation
We recommend raising the supply cap from 250,000,000 to 302,000,000. The supply leg is saturated at 96.3% utilization on deposit demand, and the proposed value places utilization near 80%. The borrow cap is held unchanged at 182,000,000.
USDT (Aave V3 Core)
USDT has reached 96.8% supply cap utilization (2,516,870,532 / 2,600,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, May 26, 2026
The top twenty USDT suppliers hold the asset on a spot basis with no outstanding debt against the position. Supply pressure on the reserve is driven by direct deposit demand.
Recommendation
We recommend raising the supply cap from 2,600,000,000 to 2,900,000,000. The supply leg is saturated at 96.8% utilization on deposit demand, and the proposed value places utilization near 87%. The borrow cap is held unchanged at 2,340,000,000.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | USDtb | 250,000,000 | 302,000,000 | 182,000,000 | — |
| Aave V3 Core | USDT | 2,600,000,000 | 2,900,000,000 | 2,340,000,000 | — |
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.