# Aave v4 borrowing and supply cap proposals

> LlamaRisk proposed allowing larger positions across several Spokes that share Hub liquidity. The steward stated that it would implement the changes.

- URL: https://riadefi.com/on-chain/2026-10-26-aave-v4-cap-increases/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: material
- Event date: 2026-10-26
- Version: 1, published 2026-10-27 (first published 2026-10-27)
- Follow-up: 2026-10-30
- Advisor-relevant: no
- Affects: Aave v4 (protocol)

## What happened

LlamaRisk proposed higher supply and borrowing caps for Aave v4 on Ethereum and Arc on October 26, 2026.

## What changed

LlamaRisk proposed allowing larger positions across several Spokes that share Hub liquidity. The steward stated that it would implement the changes.

## What did not change

LlamaRisk supplied no execution confirmation in this proposal. Ketju continues to classify Aave v4 as Not approved.

## Confirmed

- LlamaRisk proposed raising Ethereum Main Spoke USDC supply capacity from 50,000,000 USDC to 75,000,000 USDC on October 26, 2026.
- LlamaRisk proposed raising Ethereum EtherFi Spoke WETH borrowing capacity from 45,000 WETH to 60,000 WETH on October 26, 2026.
- LlamaRisk proposed raising Arc Maple Spoke USDC borrowing capacity from 46,000,000 USDC to 75,000,000 USDC on October 26, 2026.
- LlamaRisk proposed raising Arc Maple Spoke syrupUSDC supply capacity from 50,000,000 syrupUSDC to 75,000,000 syrupUSDC on October 26, 2026.

## Still open

- LlamaRisk did not establish execution dates or transaction receipts in the proposal.
- Ketju must verify the resulting caps against each Hub's available liquidity before reconsidering exposure.

## What it means for an advisor

- Ketju should review the Aave v4 memo's Spoke caps and shared liquidity analysis.
- Advisors should retain the Not approved verdict while Ketju checks executed limits and withdrawal liquidity.

## Sources

1. [Risk Stewards: Cap Increases on Aave V4 / 2026.10.26](https://governance.aave.com/t/risk-stewards-cap-increases-on-aave-v4-2026-10-26/25926) · LlamaRisk, Aave risk steward · 2026-10-26


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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.