Risk Stewards: Supply Cap Increases on Aave V3 / 2026.06.09

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 Plasma:

  • Increase supply cap for syrupUSDT from 180,000,000 to 227,000,000.

Aave V3 Mantle:

  • Increase supply cap for WMNT from 1,226,000 to 2,400,000.

syrupUSDT (Aave V3 Plasma)

syrupUSDT is currently at 76.5% supply cap utilization (137,654,454 / 180,000,000) on the Aave V3 Plasma instance.

Supply Distribution

Top syrupUSDT SuppliersSource: LlamaRisk, June 9, 2026

The largest syrupUSDT suppliers maintain relatively low health factors in the 1.01–1.08 range, with most positions concentrated in the syrupUSDT Stablecoin E-Mode category (LT: 92%). Currently, approximately $141M of debt is borrowed against syrupUSDT collateral, primarily denominated in USDT (~91%), with the remainder in GHO.

Recommendation

We recommend raising the supply cap from 180,000,000 to 227,000,000 on Aave V3 Plasma. The increase lowers cap utilization from 76.5% to 60.6%, leaving approximately $100M of supply headroom, to accommodate new inflows.

WMNT (Aave V3 Mantle)

WMNT has reached 91.1% supply cap utilization (1,117,165 / 1,226,000) on the Aave V3 Mantle instance.

Supply Distribution

Top WMNT SuppliersSource: LlamaRisk, June 9, 2026

The largest WMNT suppliers maintain relatively strong positions, with all health factors above 1.4. Total borrow exposure against WMNT collateral is modest at approximately $100K, primarily consisting of GHO and USDC debt.

On the liquidity side, available stablecoin depth is approximately $200K within a 10% price impact, providing sufficient coverage relative to the current borrow exposure.

Recommendation

We recommend raising the supply cap from 1,226,000 to 2,400,000 on Aave V3 Mantle, so that WMNT to be distributed as aWMNT incentives can be deposited. The increase lowers cap utilization from 91.1% to 55.9%.

Specification

Instance Asset Current Supply Cap Recommended Supply Cap
Aave V3 Plasma syrupUSDT 180,000,000 227,000,000
Aave V3 Mantle WMNT 1,226,000 2,400,000

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.

All the actions listed here across all instances have been executed.