LlamaRisk has proposed a new set of supply- and borrow-cap reductions for selected Aave V3 reserves across Plasma, Mantle, Avalanche and Arbitrum, following what it described as a review of user behavior, on-chain liquidity and position health.
The recommendation says several reserves currently have more headroom than present demand requires. Under the proposal, caps would be lowered while still leaving room above current outstanding balances, and the changes would be carried out through Aave’s Risk Steward process.
Largest changes center on Plasma and Arbitrum
The most substantial reduction in the package is on Aave V3 Plasma, where LlamaRisk recommended cutting the sUSDe supply cap from 450,000,000 to 225,000,000. On the same market, it also proposed lowering the USDe supply cap from 475,000,000 to 375,000,000 and the USDe borrow cap from 425,000,000 to 335,000,000.
On Arbitrum, the proposal targets Ether-related reserves. LlamaRisk recommended reducing the WETH supply cap from 240,000 to 150,000 and the WETH borrow cap from 215,000 to 135,000. It also called for a lower weETH supply cap, moving it from 59,000 to 45,000.
Mantle and Avalanche also included
For Aave V3 Mantle, the change list is limited to one reserve: sUSDe. LlamaRisk proposed lowering that asset’s supply cap from 125,000,000 to 75,000,000.
On Avalanche, the recommendations cover BTC.b and WETH.e. The BTC.b supply cap would fall from 2,200 to 1,700. For WETH.e, LlamaRisk proposed reducing the supply cap from 20,000 to 15,000 and the borrow cap from 18,000 to 13,500. The specification table also shows BTC.b with a current borrow cap of 79, but no revised borrow cap was listed for that reserve.
Review rationale focuses on excess capacity
According to the post, the cap reductions are based on the latest reserve review and reflect observed user behavior, available on-chain liquidity and the health of existing positions. LlamaRisk said the affected reserves carry supply headroom above current demand.
The proposal frames the cuts as calibration rather than a response to a stated incident. It says each recommended cap would continue to leave room for growth over current outstanding balances, even after the reductions are applied.
Implementation is set to go through Risk Steward
The governance post says the updates will now move forward through Aave’s Risk Steward process. No separate timetable or additional parameter changes were detailed in the source beyond the listed cap adjustments.
That means the next confirmed step is procedural implementation of the proposed supply and borrow cap reductions on the named Aave V3 deployments, unless the process changes before execution.
Source: governance.aave.com