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 syrupUSDC from 160,000,000 to 240,000,000.
syrupUSDC (Aave V3 Monad)
syrupUSDC has reached 91.2% supply cap utilization (145,962,754 / 160,000,000) on the Aave V3 Monad instance.
Supply Distribution
Source: LlamaRisk, July 21, 2026
The top twenty syrupUSDC suppliers run health factors between 1.01 and 1.30 with a median of 1.03, and all twenty carry outstanding debt. Fifteen borrow USDT0 and ten borrow USDC against syrupUSDC collateral, with smaller positions in GHO, AUSD, and mUSD, so the cohort holds stablecoin debt inside E-Mode category 1 (LTV 90.0%, LT 92.0%) and health factor stability tracks the syrupUSDC price.
Recommendation
We recommend raising the supply cap from 160,000,000 to 240,000,000 on Aave V3 Monad. Supply has grown 13.3% over the past seven days, and the proposed cap is approximately 1.64x current outstanding supply, landing at approximately 60.8% post-change cap utilization. The reserve is collateral-only, so the borrow cap is unchanged.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Monad | syrupUSDC | 160,000,000 | 240,000,000 | — | — |
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.