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 syrupUSDT from 27,200,000 to 50,000,000.
Aave V3 X Layer:
- Increase supply cap for xBTC from 300 to 500.
syrupUSDT (Aave V3 Core)
syrupUSDT has reached 99.9% supply cap utilization (27,185,427 / 27,200,000) on the Aave V3 Core instance.
Supply Distribution
Source: LlamaRisk, August 24, 2026
The top SyrupUSDT suppliers have a median health factor of 1.02 on V3 Ethereum Core. Borrowing is highly concentrated in USDT, which accounts for $27M, or 98.9%, of total debt. Liquidation risk remains relatively low due to the correlated oracle setup. GHO represents the remaining $0.3M of debt.
Recommendation
We recommend raising the supply cap from 27,200,000 to 50,000,000 on Aave V3 Core. The reserve stands at 99.9% supply cap utilization, and the proposed cap lands at approximately 54.4% post-change cap utilization, approximately 1.84x current outstanding supply.
xBTC (Aave V3 X Layer)
xBTC has reached 99.6% supply cap utilization (298.70 / 300) on the Aave V3 X Layer instance. We recommend increasing the supply cap from to 500, which would reduce utilization to approximately 59.7% and set the cap at approximately 1.67x the current outstanding supply.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | syrupUSDT | 27,200,000 | 50,000,000 | - | - |
| Aave V3 X Layer | xBTC | 300 | 500 | 20 | - |
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.