Aave reserve limits and borrowing rates

What happened

LlamaRisk proposed changes to Aave’s reserve caps and Arbitrum USDC borrowing rates on November 4, 2026.

What changed

LlamaRisk proposed raising Arbitrum’s USDC borrowing cap from 172,000,000 USDC to 200,000,000 USDC. It proposed increasing Slope1 from 4.20% to 4.30%.

What did not change

Ketju’s approval covers Ethereum GHO deposited into sGHO. LlamaRisk proposed no change to that vault’s withdrawal terms.

Confirmed

• LlamaRisk proposed reducing Ethereum Core supply caps for RLUSD, USDtb and USDG to 30,000,000 tokens each.
• LlamaRisk proposed raising Base’s USDC borrowing cap from 178,000,000 USDC to 195,000,000 USDC.
• LlamaRisk stated that the proposed Base USDC borrowing cap exceeds current supply, so available liquidity limits further borrowing.
• LlamaRisk planned implementation through the Risk Steward process.

Still open

• The proposal does not establish execution or the parameters currently in force.
• Available withdrawal liquidity after implementation remains dependent on deposits and borrowing.

What it means for an advisor

• Ketju should track execution and reassess withdrawal liquidity for any separately reviewed position in an affected reserve.
• The Aave memo should retain its existing sGHO limits.