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 USDC from 75,000,000 to 150,000,000.
Aave V3 Core:
- Increase supply cap for sUSDe from 300,000,000 to 450,000,000.
USDC (Aave V3 Monad)
USDC has reached 96.5% supply cap utilization (72,365,094 / 75,000,000) on the Aave V3 Monad instance.
Supply Distribution
Source: LlamaRisk, July 16, 2026
All top twenty USDC suppliers hold the asset without offsetting debt, and the largest position accounts for approximately 49% of the reserve. The supplier base is composed predominantly of users just depositing, so these positions carry no liquidation exposure at the higher cap.
Recommendation
We recommend raising the supply cap from 75,000,000 to 150,000,000 on Aave V3 Monad. USDC sits at 96.5% supply cap utilization, and the proposed cap lands at approximately 48% post-change utilization. The borrow cap is held unchanged at 67,500,000.
sUSDe (Aave V3 Core)
sUSDe has reached 96.7% supply cap utilization (290,053,896 / 300,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, July 16, 2026
All twenty of the top sUSDe suppliers carry debt, with health factors between 1.00 and 1.96 and a median of 1.04. The dominant structure is stablecoin borrowing against sUSDe collateral, led by USDe at approximately $167M across ten positions.
Recommendation
We recommend raising the supply cap from 300,000,000 to 450,000,000 on Aave V3 Core. sUSDe sits at 96.7% supply cap utilization, and the proposed cap lands at approximately 64% post-change utilization. The reserve is non-borrowable and serves as collateral through the sUSDe and PT-sUSDe E-Mode categories.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Monad | USDC | 75,000,000 | 150,000,000 | 67,500,000 | — |
| Aave V3 Core | sUSDe | 300,000,000 | 450,000,000 | — | — |
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