LlamaRisk has put forward what it describes as the thirteenth round of Add Cap and Draw Cap adjustments for Aave V4, following a rise in deposits across the protocol’s active hubs on Ethereum and Avalanche. According to the proposal, deposits increased to about $396.1 million after Round 12, up roughly 15% from $345.8 million on August 11, 2026.

The recommendation is aimed at restoring available capacity where collateral reserves have been heavily used, easing pressure on borrow lines nearing their limits, and supporting further growth in parts of the V4 deployment that saw the fastest demand. In total, the proposed changes would add around $100 million of fresh Add Cap capacity across four hubs.

Capacity pressure emerged after Round 12

LlamaRisk said the latest review followed a sharp increase in usage after the previous round of changes. It highlighted inflows into syrupUSDG, USDG, WBTC, WETH, and sUSDe as key contributors to the rise in total deposits.

That growth pushed several lines toward full or heavy utilization. The proposal said the Global Dollar Hub reached capacity, while syrupUSDG collateral became fully utilized and USDG supply on the Maple spoke was close to exhaustion. It also pointed to stretched collateral reserves tied to assets including WETH, wstETH, XAUt, and sUSDe.

How the proposed expansion is split

The thirteenth round would introduce about $100 million in additional Add Cap capacity, according to LlamaRisk. The largest share, $65 million, is earmarked for Ethereum Core.

The remaining proposed capacity would be distributed across Ethereum Plus with $2 million, Global Dollar with $20 million, and Avalanche Core with $13 million. Alongside those increases, the recommendation also calls for draw-side relief on the most utilized borrow lines rather than limiting changes only to deposit capacity.

Borrow demand and Avalanche growth shaped the review

The proposal links the requested adjustments to several specific trends across the deployment. LlamaRisk said the changes are intended to support USDG demand, expand native USDG availability, and reduce reliance on Core credit lines.

It also cited pressure on borrow lines including EURC and frxUSD, as well as broader demand for USDC borrowing. On Avalanche, the deployment size is described as having doubled, prompting recommendations to increase caps on the AVAX Correlated Spoke. The review also noted that a USDC supply campaign influenced interest rate models.

What happens next

Under the process outlined in the proposal, the adjustments would move to the Aave Security Council after review. LlamaRisk said utilization across hubs will continue to be monitored and that further changes could follow if market conditions change.

The proposal itself frames the recommendations as risk analysis rather than certainty. It presents the cap increases and draw-side changes as responses to current usage trends across five hubs on two chains, with the next confirmed step being Security Council consideration and possible execution.

Source: governance.aave.com