Aave Risk Stewards Propose V3 Parameter Changes Amid Market Demand

Aave's Risk Stewards have proposed changes to the platform's V3 parameters in response to utilization, liquidity, and borrower data from six deployments. The proposal, submitted by LlamaRisk on September 7, recommends raising supply caps for USDC, GHO, wstETH, and USD₮0, while reducing those of underused syrupUSDC, USDe, and syrupUSDT.

The proposed changes aim to address high demand in certain markets. For example, the USDC supply cap on Aave V3 Core would rise from 2.5 billion to 3 billion, while its borrow cap would move from 2.25 billion to 2.7 billion. LlamaRisk reported supply-cap utilization of 92.4% and borrow-cap utilization of 95.7% before the change.

The proposal also includes increases in GHO's supply and borrow caps on Monad, as well as wstETH's supply cap. On X Layer, where USD₮0's borrow cap was fully used, the recommended limit would rise from 48 million to 90 million.