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 PT-srUSDe-22OCT2026 from 50,000,000 to 75,000,000.
- Increase supply cap for weETH from 1,100,000 to 1,220,000.
PT-srUSDe-22OCT2026 (Aave V3 Core)
PT-srUSDe-22OCT2026 has reached 98.5% supply cap utilization (49,233,543 / 50,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, July 22, 2026
The top twenty PT-srUSDe-22OCT2026 suppliers run health factors between 1.00 and 1.18 with a median of 1.02, and 19 of the 20 carry outstanding debt. Eighteen borrow USDe against the PT collateral in the PT E-Mode categories. Note that roughly 50% of the supply is concentrated in one wallet.
Liquidity
Source: LlamaRisk, July 22, 2026
The Pendle AMM pool for PT-srUSDe-22OCT2026 holds approximately 5.71 million USD in liquidity, composed of 27% PT and 73% SY, with the PT maturing on October 22, 2026. The PT redeems at par against srUSDe at maturity; before maturity, PT exit runs through the Pendle AMM, whose PT side holds approximately 1.56 million USD.
Recommendation
We recommend raising the supply cap from 50,000,000 to 75,000,000 on Aave V3 Core. The reserve is at 98.5% supply cap utilization, and the new cap lands at approximately 65.6% post-change utilization. The top suppliers borrow USDe against PT-srUSDe collateral in the PT E-Mode categories, a correlated pairing that keeps the health factor cluster tight as the PT converges to par at maturity.
weETH (Aave V3 Core)
weETH has reached 94.1% supply cap utilization (1,035,160 / 1,100,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, July 22, 2026
The top twenty weETH suppliers run health factors between 1.00 and 2.12 with a median of 1.04, and all twenty carry outstanding debt. Sixteen borrow WETH against weETH collateral in the ETH-correlated E-Mode categories, with a minority borrowing stablecoins, so the health factor cluster for the dominant cohort tracks the weETH-versus-ETH spread.
Recommendation
We recommend raising the supply cap from 1,100,000 to 1,220,000 on Aave V3 Core. The reserve is at 94.1% supply cap utilization, and the new cap lands at approximately 84.8% post-change utilization. The supplier base predominantly borrows WETH against weETH collateral, therefore liquidation risk is minimal.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | PT-srUSDe-22OCT2026 | 50,000,000 | 75,000,000 | — | — |
| Aave V3 Core | weETH | 1,100,000 | 1,220,000 | — | — |
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.