Aave raises V3 caps for USDe, FBTC and cbETH after reserves near utilization limits

USDe caps increased on Aave V3 Core

The largest adjustment in the update concerns USDe on Aave V3 Core. LlamaRisk said the reserve had reached 98.0% of its supply cap, with 613,233,329 USDe supplied out of a 626,000,000 limit, while borrow utilization stood at 91.8%, or 336,057,430 out of a 366,000,000 cap.

Under the change, the USDe supply cap rises to 751,200,000 from 626,000,000. Its borrow cap increases to 475,800,000 from 366,000,000. Based on the figures in the proposal, those new limits would place utilization at about 81.6% for supply and 70.6% for borrowing after the increase.

The governance post said the recommendation was based on user behavior, on-chain liquidity and position health observed in the latest review of Aave V3 reserves.

Position data shaped the recommendation

For USDe suppliers, the top listed accounts had health factors ranging from 1.01 to 13.08, with a median of 1.09. Seventeen of the nineteen suppliers listed in the review also had outstanding debt. Most of that group borrowed stablecoins against USDe collateral: fifteen borrowed USDT and four borrowed USDC.

On the borrowing side, the top twenty USDe borrowers had health factors between 1.01 and 2.31, with a median of 1.24. The most common collateral in that group was sUSDe, used by nine of twenty borrowers, followed by wstETH, WETH and weETH. LlamaRisk said the sUSDe-backed positions paired collateral and debt that reprice together, which it described as supporting the relatively tight cluster of health factors.

FBTC on Mantle and cbETH on Base

Two other V3 markets also received supply cap increases. On Aave V3 Mantle, FBTC’s supply cap was doubled from 50 to 100 after utilization reached 85.3%, with 42.65 supplied out of the original cap. The asset is non-borrowable on that instance and is used as collateral through the FBTC Stablecoins E-Mode, which the post lists with a 75.0% loan-to-value ratio and a 79.0% liquidation threshold.

On Aave V3 Base, cbETH’s supply cap was raised from 39,900 to 50,000 after the reserve hit full utilization. The review cited 39,899 supplied against the 39,900 cap, or 100.0% utilization.

Among the top cbETH suppliers, health factors ranged from 1.02 to 2.28, with a median of 1.08. All nineteen listed suppliers had outstanding debt. Fourteen borrowed WETH against cbETH collateral, while five borrowed USDC. LlamaRisk said the dominant cbETH/WETH structure meant health factor stability largely tracked the spread between the two ETH-linked assets.

Implementation through Risk Steward process

The governance post’s specification listed three changes: a higher USDe supply and borrow cap on Aave V3 Core, a higher FBTC supply cap on Aave V3 Mantle, and a higher cbETH supply cap on Aave V3 Base. In its next-steps section, the post said the updates would move forward through the Risk Steward process.

The changes reflect a routine part of Aave’s risk management framework, where reserve limits are adjusted when utilization approaches existing caps and reviewers assess liquidity, user positioning and account health before recommending more room for activity.