Just 20 minutes ago, the PT-USDG supply cap on AAVE V4 suddenly increased from 15 million to 30 million, but I haven’t seen any comments from a Risk Steward regarding this action??? Why was the supply cap suddenly increased??? Furthermore, while the supply cap was raised, the borrowing limit wasn’t increased—what’s the point of that? Was this done by Llamarisk, or was a vulnerability exploited?
Some verified on-chain context that may help answer this.
On process first: the [ARFC] Aave V4 Activation on Ethereum Mainnet thread describes ongoing rounds of Add Cap / Draw Cap adjustments for V4 (ninth round as of early July) and attributes recent deposit growth primarily to the PT-USDG-24SEP2026 listing on the Global Dollar Hub. So the increase looks like part of that steward cadence rather than an exploit. And since the PT is listed as collateral on a dedicated spoke, not as a borrowable asset, a supply cap raise with no matching borrow-side change is what you would expect.
On why the headroom was needed, the numbers are fairly clear. The Global Dollar Hub launched July 1 with PT-USDG as inaugural collateral and its position has grown steadily since: I measured 17.25M PT on July 8 (52.4% of total PT supply), 18.44M on July 10, and 18.62M today, against a total PT supply of about 30.6M, so the hub currently holds around 60.8% of all PT-USDG in existence. At 18.6M and growing, the old 15M cap had already been overrun.
Demand context: USDG mainnet supply moved 470M to 535M and back to about 474M within roughly 48 hours in early July (cross-checked on two public RPCs), consistent with supply being minted and bridged to serve new venues. DeFiLlama shows Morpho on Robinhood Chain at 89M TVL plus 101.7M borrowed today, roughly 190M supplied, up from about 125M on July 9, following the July 1 Robinhood Earn launch that pays USDG yield through a Steakhouse-curated vault.
With PT demand concentrating inside the hub and new USDG distribution rails coming online the same week, a cap increase reads as the expected operational response to real inflows. Every figure above is reproducible from public RPCs. Happy to share the exact eth_call queries if useful.
Thank you for your reply. I was just wondering why I didn’t see llamarisk’s post, “Risk Stewards: Supply Cap Increases on Aave V4 / 2026.07.XX”.
Fair point on process. For V3, cap changes ship as standalone Risk Stewards posts (the latest was July 5). For V4, the cap rounds are currently batched inside the [ARFC] Aave V4 Activation thread updates instead of dedicated posts, so there was no standalone post to find for this one. Whether V4 changes deserve the same per-change disclosure cadence as V3 seems like a reasonable ask as V4 TVL grows.
I think this is necessary; no one will bother digging up a post from several months ago.