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 MegaETH:
- Increase supply cap for stcUSD from 40,000,000 to 60,000,000.
stcUSD (Aave V3 MegaETH)
stcUSD has reached 100.0% supply cap utilization (39,999,614 / 40,000,000) on the Aave V3 MegaETH instance.
Supply Distribution
Source: LlamaRisk, July 10, 2026
Across the top stcUSD suppliers, health factors range from 1.01 to 2.12 with a median of 1.06, and the positions carry outstanding debt against their collateral, important to note that the supply is basically concentrated across 3 addresses, representing moderate concentration risk. The debt across the positions is USDm borrowed against stcUSD in the Stablecoins E-Mode (LT 90%), so health factor stability depends on the stcUSD to USDm price relationship.
Recommendation
We recommend raising the supply cap for stcUSD from 40,000,000 to 60,000,000 on Aave V3 MegaETH. Utilization stands at 100% (39,999,614 / 40,000,000), and the increase brings post-change utilization to approximately 67% with headroom for further supply growth.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 MegaETH | stcUSD | 40,000,000 | 60,000,000 | — | — |
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.