# Aave risk stewards propose v3 cap and interest-rate changes

> 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.

- URL: https://riadefi.com/on-chain/2026-08-31-aave-v3-risk-stewards-cap-irm/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: watch
- Event date: 2026-08-31
- Version: 1, published 2026-09-15 (first published 2026-09-15)
- Follow-up: 2026-09-03
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [Risk Stewards: Cap and IRM Changes on Aave V3 / 2026.08.31](https://governance.aave.com/t/risk-stewards-cap-and-irm-changes-on-aave-v3-2026-08-31/25571) · Aave governance · 2026-08-31


---

Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.