Aave to Automate Risk Management for Pendle Collateral on Plasma
Aave is moving forward with a proposal to delegate risk management of Pendle collateral to automated software agents. LlamaRisk has submitted a proposal to register its LlamaGuard PT risk oracle agents on Aave V3 Plasma. These agents would automatically adjust collateral settings for the Pendle Principal Token (PT-sUSDe-22OCT2026), which had over $45 million supplied at the time of the proposal.
The governance proposal, initiated on October 1, 2026, seeks to enable the agents to modify risk parameters like smoothed interest rates and liquidation thresholds for the PT-sUSDe-22OCT2026 market on Plasma. The agents operate on Chainlink’s Runtime Environment, automating risk decisions without manual intervention. Key parameters are capped at 100 basis points per update for discount rates and 50 basis points for E-Mode parameters, with minimum gaps of 2 and 3 days between changes, respectively.
Aave’s governance retains oversight, requiring agent registration through governance and maintaining emergency protocols. The shift to automated risk management follows LlamaRisk’s earlier transition from manual stewardship to on-chain execution, first on Ethereum in early September 2026. Pendle PTs serve as dynamic collateral, with their value fluctuating based on market rates and maturity dates.
The change will result in more frequent, incremental adjustments for borrowers using PT-sUSDe-22OCT2026 on Plasma. For Aave, the extension to Plasma indicates growing comfort with automated risk management across multiple networks. The protocol’s handling of agent registrations and overrides will shape the potential expansion of this model to other assets and chains.