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:
- Reduce supply cap for PT-USDe-7MAY2026 from 30,000,000 to 1.
- Reduce supply cap for PT-sUSDE-7MAY2026 from 300,000,000 to 1.
Aave V3 Arbitrum:
- Reduce supply cap for ezETH from 42,000 to 130.
Cap Reductions
The reductions in this batch fall into two groups: post-maturity wind-down for two Pendle Principal Tokens on Aave V3 Core, and right-sizing of a low-utilization reserve on Aave V3 Arbitrum.
On Aave V3 Core, PT-USDe-7MAY2026 reached its scheduled maturity on 2026-05-07. The reserve holds 4,283 PT against the prior 30,000,000 supply cap. After maturity, the PT becomes redeemable at par against the underlying. The proposed supply cap of 1 closes new collateral deposits while existing holders retain the ability to withdraw or redeem.
On Aave V3 Core, PT-sUSDE-7MAY2026 reached its scheduled maturity on the same date. The reserve holds 1,590,658 PT against the prior 300,000,000 supply cap. The proposed supply cap of 1 closes new deposits on the same post-maturity basis, while existing balances retain full withdrawal and redemption pathways.
On Aave V3 Arbitrum, ezETH has 83.73 supplied against a 42,000 supply cap (0.20% utilization). The reserve is configured as collateral-only. The proposed supply cap of 130 sits at 1.55x current deposits, retaining a modest operational buffer while removing the unused headroom on the supply side.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Aave V3 Core | PT-USDe-7MAY2026 | 30,000,000 | 1 | — | — |
| Aave V3 Core | PT-sUSDE-7MAY2026 | 300,000,000 | 1 | — | — |
| Aave V3 Arbitrum | ezETH | 42,000 | 130 | — | — |
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.