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.
- Increase supply cap for PT-AUSD-17DEC2026 from 30M to 60M on Monad.
PT-AUSD-17DEC2026 (Aave V3 Monad)
PT-AUSD-17DEC2026 has reached 100.0% supply cap utilization on the Aave V3 Monad instance.
Supply Distribution
Source: LlamaRisk, October 9, 2026
The top suppliers run health factors between 1.01 and 1.18 with a median of 1.03, and all of them carry outstanding debt. USDC is the dominant borrowed asset, followed by USDT0, with GHO and mUSD in a minority of positions, all held against PT collateral within the PT-AUSD-17DEC2026 stablecoin E-Mode category, and since the PT is priced through a linear discount oracle on the AUSD/USD feed, the health factor of the cohort tracks the AUSD price relative to the stablecoin debt.
Liquidity
Source: LlamaRisk, October 9, 2026
The primary trading venue is the Pendle AMM pool on Monad, which holds 3.88M in total liquidity, split 47% PT and 53% SY. Pool TVL has grown from near zero at the start of October, while the implied APY has eased from 6.0% to approximately 5.3% over the same period. The PT matures on December 17, 2026, after which it becomes redeemable at par against the underlying, so the exit at maturity does not depend on secondary market depth.
Recommendation
We recommend raising the supply cap from 30M to 60M on Aave V3 Monad, which places the reserve at approximately 50.0% post-change cap utilization.
Specification
Supply Caps
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Aave V3 Monad | PT-AUSD-17DEC2026 | 30,000,000 | 60,000,000 |
Next Steps
We will move forward and implement these updates via the Risk Steward process. The implemented changes can be reviewed on the LlamaRisk Risk Stewards Dashboard.
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.