LlamaRisk proposed raising Aave Monad USDC caps to 350 million and stablecoin rates

What happened

LlamaRisk proposed reserve-cap changes on Aave's Monad, Core and Prime instances and higher stablecoin interest-rate slopes, through Aave's Risk Steward process.

What changed

The proposal would raise Monad USDC supply and borrow caps to 350M and 315M. It would cut Core USDtb caps to 100M and 50M, cut Core LDO's supply cap to 1 and cut tETH supply caps to 300 on Core and 15,000 on Prime. Most listed stablecoin Slope1 values would rise from 4.40% to 4.50%, and Base USDC would rise from 4.70% to 4.75%.

What did not change

Ketju has not found that the changes executed. Holders could still withdraw LDO after new deposits close. The rate change leaves Slope2 and optimal utilization the same, and Ketju found no realized loss.

Confirmed

• The official proposal gives the cap values and the affected Aave instances.
• The LDO cap of 1 is meant to close new deposits as part of retiring the reserve.
• The detailed specification raises Base USDC Slope1 by 5 basis points, while the general increase is 10 basis points.
• The stated next step is implementation through the Risk Steward process.

Still open

• It is not known whether, when or through which transactions each change will be made.
• The live caps and rates that result, and whether positions of the proposed size could be withdrawn from the reserves advisors use, are not known.

What it means for an advisor

• Ketju will review the Aave v3 memo's assumptions on reserve access and rates against the proposed changes.
• Require reads of the executed parameters before treating the higher Monad caps or the LDO deposit closure as live.