# Aave v4 Risk Steward proposes cap increases and a flatter high-utilization WETH rate curve

> The proposal would expand USDT and USDG borrowing capacity, increase selected supply caps, reduce Core WETH slope2 from 14% to 8%, and close new deposits for matured PT-USDG-24SEP2026.

- URL: https://riadefi.com/on-chain/2026-10-06-aave-v4-risk-steward-caps-irm/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: watch
- Event date: 2026-10-06
- Version: 1, published 2026-10-07 (first published 2026-10-07)
- Follow-up: 2026-10-14
- Advisor-relevant: no
- Affects: Aave v4 (protocol)

## What happened

LlamaRisk published a concrete Aave v4 Ethereum parameter recommendation through the official Risk Steward governance surface.

## What changed

The proposal would expand USDT and USDG borrowing capacity, increase selected supply caps, reduce Core WETH slope2 from 14% to 8%, and close new deposits for matured PT-USDG-24SEP2026.

## What did not change

The record does not establish execution. Aave v4 remains excluded by policy in the existing memo; no v3 parameter change or new approval is established.

## Confirmed

- The proposal raises Core Main USDT add and draw caps from 28M and 20M to 40M and 30M.
- It raises the Core Ethena Ecosystem USDT draw cap from 1.5M to 3M and Core Main USDG draw cap from 50M to 60M.
- It raises Global Dollar USDG Maple USDG add and draw caps from 45M and 42.75M to 55M and 50M, and syrupUSDG add cap from 60M to 70M.
- It proposes Core WETH slope2 of 8%, retaining the stated 92% optimal utilization, 0% base rate, and 2.2% slope1.
- The proposed matured PT add cap is zero; the proposal states withdrawals would remain unaffected.
- The post describes implementation through the Risk Steward process as a next step.

## Still open

- Execution transactions and resulting live Hub and Spoke parameters were not verified.
- The quoted liquidity and utilization observations are the steward's dated measurements, not independently reproduced current state.
- Post-change available exit liquidity and compliance with the memo's per-Spoke liquidity boundaries remain to be tested.

## What it means for an advisor

- Monitor the aave-v4 diligence file for execution and reproduce the exact connected-Spoke caps and WETH curve before refreshing its configuration baseline.
- Retain the policy exclusion. Higher caps and a flatter high-utilization rate curve do not satisfy production-history or proposed-size withdrawal reopening criteria.
- Evaluate executed draw caps against matching-asset Hub liquidity rather than protocol-wide TVL.

## Sources

1. [Risk Stewards: Cap and IRM Changes on Aave V4 / 2026.10.06](https://governance.aave.com/t/risk-stewards-cap-and-irm-changes-on-aave-v4-2026-10-06/25791) · Aave governance — LlamaRisk Risk Steward · 2026-10-06


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