Aave risk stewards propose v3 cap and interest-rate changes

What happened

LlamaRisk published a Risk Steward proposal covering Aave v3 supply caps and interest-rate models across Core, Plasma, Monad, Avalanche, Mantle, Arbitrum, and Optimism deployments.

What changed

If implemented, the proposal would raise selected supply caps, increase USDe base borrowing rates, move optimal utilization for Core USDC and USDT and Plasma USDT0 from 92% to 94%, and reduce WETH slope-one rates on three deployments.

What did not change

The cached record is a proposal and does not provide an executed Risk Steward transaction. Liquidation thresholds, collateral LTVs, and the full-utilization rate response are not changed by the stated IRM adjustments.

Confirmed

• The proposal would increase the Monad PT-AUSD-8OCT2026 supply cap from 40 million to 80 million and USDe from 120 million to 220 million.
• The proposal would increase the Plasma USDe supply cap from 375 million to 450 million.
• The proposed 94% optimal utilization would reduce liquidity held at the kink from 8% to 6% for Core USDC, Core USDT, and Plasma USDT0.
• The proposed USDe base-rate increase is 100 basis points on five Aave v3 deployments.
• The post states that implementation is intended through the Risk Steward process.

Still open

• Whether and when Risk Steward transactions execute each proposed change.
• The post-execution effect on utilization, available withdrawal liquidity, and borrowing migration among stablecoin reserves.

What it means for an advisor

• Monitor the Risk Steward execution records before treating any parameter as operative.
• If executed, review the Aave v3 memo’s liquidity assumptions, particularly the 25% relative reduction in the kink withdrawal buffer for Core USDC and USDT.
• The stated rationale is liquidity, user behavior, and position health; it does not fire the memo criterion concerning growth- or competitiveness-based parameter justification.