Aave V4 is moving ahead with an eighth round of Add Cap and Draw Cap increases after continued deposit growth across the protocol. According to LlamaRisk’s recommendation for Ethereum mainnet, total deposits have reached about $185 million, with inflows concentrated in BTC and ETH collateral on the Core Hub.

The update comes after some reserves used up earlier capacity increases. LlamaRisk said WBTC on Core Main had refilled the room added in the previous round and returned to full Add Cap utilization, a sign that depositor demand remained strong enough to justify more headroom.

Another increase to protocol capacity

The latest proposal adds roughly $75 million of extra Add Cap capacity across Aave V4. Of that total, about $64 million is allocated to Core and $11 million to Prime, lifting the overall Add Cap ceiling from around $392 million to $467 million.

For the affected assets, Draw Caps are being increased in proportion to keep existing Add-to-Draw ratios unchanged. The stated aim is to expand room where utilization levels show that current limits are becoming restrictive, while keeping the framework already used for risk controls.

Why frxUSD, USDG and Core reserves were prioritized

LlamaRisk pointed to two main reasons for the round. First, the ongoing incentive programs for frxUSD and USDG have filled the caps set in Round 4. Both reserves on Core/Main were reported at 100% Add Cap utilization after the incentive rollout, and the recommendation raises each of them to 20,000,000 to extend available reward capacity.

Second, a broader set of Core/Main and smaller spoke reserves were described as being near or above the levels set in Round 4. Those assets are receiving smaller USD-equivalent increases, generally in the $1 million to $3 million range, to ease immediate constraints without making larger exposure jumps.

Recent growth and the most active assets

In a comparison covering May 19 to May 26, 2026, deposits increased from $63,382,699 to $89,635,315, a 41% rise. The largest inflows in that period included USDG on Core Main Spoke with an increase of $7,998,710, frxUSD on Core Main Spoke at $5,500,339, WETH on Core Main Spoke at $4,404,531, cbBTC on Core Main Spoke at $1,957,647, and weETH on Core Etherfi Spoke at $1,656,684.

The utilization figures cited in the recommendation show where pressure is building. Core Hub held $76,610,109 in deposits, equal to 55% of its Add Cap, while Prime Hub stood at $12,771,955, or 38%, and Plus Hub at $253,250, or 3%. Several individual assets were already above 80% Add Cap utilization, including USDG, frxUSD, USDC, USDT, cbBTC and XAUt, with WETH on Core Main also described as highly utilized.

Where the changes are being applied

On the Core Hub, the adjustments span several spokes, including Forex pools for EURC, USDC and USDT, Gold pools for USDC, USDG and USDT, as well as XAUt and frxUSD. The Main spoke also receives higher caps for assets such as LINK, USDG, frxUSD, WBTC, WETH and cbBTC.

Prime Hub changes focus on blue-chip assets, with higher caps for USDC and USDT and increases for non-stable assets including WBTC, WETH and cbBTC to create additional room for new collateral. On Plus Hub, the changes are more limited, with modest updates for Ethena ecosystem caps including USDC, USDT and sUSDe, alongside other related listings.

LlamaRisk also said some credit lines would be scaled up to support the larger frxUSD capacity on Core/Main and stronger borrowing demand for blue-chip assets.

Security Council execution and further monitoring

The proposal states that, following review, the cap adjustments will be applied through the Aave Security Council. The already approved summary of the move said the new changes were applied on Ethereum and Avalanche after deposit growth accelerated and some reserves reached full utilization.

LlamaRisk said utilization across hubs will continue to be monitored and may guide future adjustments as conditions change. The next confirmed step is implementation of the revised caps and continued observation of whether the added headroom is again absorbed by deposit inflows.

Source: governance.aave.com