# Aave reserve limits and borrowing rates

> 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%.

- URL: https://riadefi.com/on-chain/2026-11-04-aave-v3-risk-steward-parameters/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: watch
- Event date: 2026-11-04
- Version: 1, published 2026-11-05 (first published 2026-11-05)
- Follow-up: 2026-11-06
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [Aave reserve caps and borrowing rates](https://governance.aave.com/t/risk-stewards-cap-and-irm-changes-on-aave-v3-2026-11-04/26010) · LlamaRisk · 2026-11-04


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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.