LlamaRisk proposes $100M capacity increase for Aave V4 on Ethereum and Avalanche

Deposit growth concentrated in USDG markets

LlamaRisk said the largest inflows since the August 11 Round 12 update came from the newly deployed Maple syrupUSDG spoke on the Global Dollar Hub. USDG on that spoke added about $9.66 million, while syrupUSDG added around $9.41 million. Other notable increases included roughly $4.95 million in USDG on the Core Main spoke, $4.21 million in WBTC on the Prime Bluechip spoke, and $3.75 million in wstETH on the Prime Bluechip spoke.

At the hub level, the Core Hub held about $286.97 million in deposits, equal to 52% of its Add Cap. The Prime Hub stood at $42.81 million, or 28% of Add Cap; the Plus Hub at $11.28 million, also 28%; the Global Dollar Hub at $44.4 million, or 58%; and the Avalanche Core Hub at $10.63 million, or 34%.

Several reserves are already near or at cap

The proposal highlights seven reserves with Add Cap utilization above 80%. syrupUSDG on the Global Dollar Hub’s Maple syrupUSDG spoke was fully utilized, while USDG on the Core Main spoke had also reached 100% of its Add Cap. USDG on the same Maple spoke was at 99%, with Avalanche markets also showing tight capacity: WAVAX on Avalanche Core Main at 96%, sAVAX on the AVAX Correlated spoke at 93%, USDC on Avalanche Core Main at 91%, and USDC on Avalanche Core Forex at 88%.

Another seven reserves were reported in the 50% to 80% utilization band, including PT-USDG-24SEP2026, frxUSD, WETH, USDT, sUSDe, wstETH, and XAUt. LlamaRisk said this round is intended to replenish collateral reserves that have moved beyond target utilization levels and to relieve borrow lines that are already heavily used.

Where the new capacity would go

The biggest increase in the package is directed to the Ethereum Core Hub, which would receive about $65 million of additional Add Cap capacity. Proposed changes there include raising XAUt from 3,800 to 4,500, USDT from 24 million to 28 million, WETH from 38,000 to 50,000, and wstETH from 15,000 to 30,000. On the draw side, the Gold spoke’s EURC line would move from zero to a 100,000 draw cap, while WETH would keep a 3,300 draw cap and USDT a 20 million draw cap.

On Ethereum Plus, LlamaRisk proposes lifting the Add Cap for sUSDe in the Ethena Ecosystem from 8 million to 10 million. In the Global Dollar Hub, both USDG and syrupUSDG on the Maple syrupUSDG spoke would be doubled from 10 million to 20 million, with the USDG draw cap increased from 9.5 million to 19 million.

Avalanche Core would receive about $13 million in added capacity. The AVAX Correlated spoke’s WAVAX Add Cap would move from zero to 1 million, with its draw cap rising from 250,000 to 1.25 million. sAVAX would increase from 200,000 to 1 million. Separately, the Core-to-Plus credit line for frxUSD in the Ethena Ecosystem, described as 100% utilized, would be doubled from 1 million to 2 million.

Rationale and next step

LlamaRisk said the Global Dollar Hub has already reached capacity, with syrupUSDG collateral fully used and native USDG supply on the Maple spoke nearly exhausted. The suggested increases are intended to support continued USDG demand, expand the hub’s native USDG base, and reduce reliance on the Core credit line. The firm also pointed to Avalanche, where the deployment reportedly doubled in size over the week and demand on the AVAX Correlated spoke consumed available caps.

The proposal says that, after review and confirmation, the cap adjustments would be applied directly by the Aave Security Council. LlamaRisk added that it will continue monitoring utilization and plans to reassess hub limits again as deposits approach their updated ceilings.