Aave raises the Linea wrsETH supply cap to 70,000

What happened

Aave governance executed an increase in the Linea wrsETH supply cap from 6,400 to 70,000.

What changed

The maximum permitted wrsETH supply on the Linea Aave market increased by more than tenfold, materially expanding the market's possible liquid-restaking exposure.

What did not change

The payload did not change wrsETH's oracle, liquidation thresholds, loan-to-value setting, borrowability, or underlying bridge and wrapping dependencies.

Confirmed

• Aave governance proposal 372 executed on September 15, 2025.
• The execution sent payload 13 to Linea.
• The wrsETH supply cap increased from 6,400 to 70,000.

Still open

• Actual cap utilization and market liquidity after execution required monitoring.
• The event record did not establish stressed exit liquidity for wrsETH or its underlying restaking and bridge dependencies.

What it means for an advisor

• Review the Aave memo's Linea-specific liquid-restaking and wrap-depth exposure.
• Confirm whether any approved or client-held market could inherit losses from the expanded wrsETH collateral path.
• Monitor cap utilization, oracle deviations, liquidation liquidity, and bridge dependencies.