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 weETH from 1,220,000 to 1,350,000.
- Increase supply cap for wstETH from 1,000,000 to 1,100,000.
Aave V3 BNB:
- Increase supply cap for USDT from 67,000,000 to 90,000,000.
Aave V3 Mantle:
- Increase supply cap for FBTC from 100 to 200.
weETH (Aave V3 Core)
weETH has reached 95.5% supply cap utilization (1,165,072 / 1,220,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, August 14, 2026
All twenty of the top weETH suppliers carry outstanding debt, with health factors between 1.00 and 2.05 and a median of 1.06. Fifteen borrow WETH against weETH collateral and the balance of debt sits in USDC, USDT, and USDe, so the dominant structure is an ETH-correlated pair whose health factor stability tracks the weETH to ETH exchange rate.
Recommendation
We recommend raising the supply cap from 1,220,000 to 1,350,000 on Aave V3 Core. The reserve stands at 95.5% supply cap utilization, and the proposed cap lands at approximately 86.3% post-change cap utilization. The health factor cluster sits inside the ETH-correlated E-Mode categories at a 95.0% liquidation threshold.
wstETH (Aave V3 Core)
wstETH has reached 94.7% supply cap utilization (946,696 / 1,000,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, August 14, 2026
Nineteen of the top twenty wstETH suppliers carry outstanding debt, with health factors between 1.03 and 6.22 and a median of 1.87. Fifteen borrow USDT against wstETH collateral and eight borrow USDC, while four hold WETH debt that accounts for the largest share of borrowed value, so the cohort mixes stablecoin borrowing with ETH-correlated borrowing.
Recommendation
We recommend raising the supply cap from 1,000,000 to 1,100,000 on Aave V3 Core. The reserve stands at 94.7% supply cap utilization, and the proposed cap lands at approximately 86.1% post-change cap utilization.
USDT (Aave V3 BNB)
USDT is currently at 89.3% supply cap utilization (59,808,967 / 67,000,000) on the Aave V3 BNB instance.
Supply Distribution
Source: LlamaRisk, August 14, 2026
Nineteen of the top twenty USDT suppliers hold the asset with no offsetting debt, and the single supplier carrying debt runs a health factor of 2.93. That debt is a small WBNB position, so the supplier base is composed predominantly of users just depositing.
Recommendation
We recommend raising the supply cap from 67,000,000 to 90,000,000 on Aave V3 BNB. The reserve stands at 89.3% supply cap utilization, and the proposed cap lands at approximately 66.5% post-change cap utilization.
FBTC (Aave V3 Mantle)
FBTC has reached 97.7% supply cap utilization (97.70 / 100) on the Aave V3 Mantle instance.
Supply Distribution
Source: LlamaRisk, August 14, 2026
Five of the six FBTC suppliers carry outstanding debt, with health factors between 1.23 and 2.25 and a median of 1.44. All of that debt is in stablecoins, with positions in USDe and USDT0 held against FBTC collateral, so health factor stability tracks the BTC price.
Recommendation
We recommend raising the supply cap from 100 to 200 on Aave V3 Mantle. The reserve stands at 97.7% supply cap utilization, and the proposed cap lands at approximately 48.9% post-change cap utilization. Supply is concentrated, with the largest depositor holding approximately 56% of the reserve, which warrants monitoring for step changes in available capacity.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Aave V3 Core | weETH | 1,220,000 | 1,350,000 |
| Aave V3 Core | wstETH | 1,000,000 | 1,100,000 |
| Aave V3 BNB | USDT | 67,000,000 | 90,000,000 |
| Aave V3 Mantle | FBTC | 100 | 200 |
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.