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 cbBTC from 19,000 to 22,800.
cbBTC (Aave V3 Core)
cbBTC is currently at 99.6% supply cap utilization (18,917 / 19,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, June 26, 2026
The top twenty cbBTC suppliers run health factors between 1.04 and 4.22 with a median of 1.56, with all twenty carrying outstanding debt. The cohort borrows predominantly USDC against cbBTC collateral, so health factor stability tracks the BTC price.
Recommendation
We recommend raising the supply cap from 19,000 to 22,800 on Aave V3 Core. cbBTC sits at 99.6% supply cap utilization (18,917 / 19,000), and the proposed cap of 22,800 lands at approximately 83.0% post-change cap utilization. The supplier base borrows predominantly USDC against cbBTC collateral, and the borrow cap is held unchanged.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | cbBTC | 19,000 | 22,800 | 1,440 | — |
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.