- Aave’s risk stewards cut the RLUSD supply cap from 100 million to 30 million as part of broader reductions to RLUSD, USDtb and USDG limits across nine blockchain deployments
- Borrow caps on cbBTC and WBTC, two bitcoin-backed assets, were raised on the same deployments as part of the same update
- Arbitrum’s USDC interest-rate Slope1 parameter rose from 4.20% to 4.30%, and stablecoin caps on Mantle and Monad were cut by half
A wide-ranging set of risk parameter changes posted to Aave’s governance forum on November 4, 2026 touches nine separate blockchain deployments running the protocol’s V3 codebase, including Core, Arbitrum, Base, BNB Chain, Mantle, Monad, Plasma, Polygon and X Layer. The update reflects Aave’s risk stewards actively rebalancing exposure across the protocol’s stablecoin and bitcoin-backed asset markets simultaneously.
The most significant reductions target three stablecoins: RLUSD, issued by Ripple, USDtb, and USDG, issued by Paxos. RLUSD’s supply cap was cut sharply, from 100 million down to 30 million, a reduction of more than two-thirds. Both USDtb and USDG saw their supply and borrow caps reduced as well, though by smaller proportions than RLUSD’s cut. The reductions apply across the nine affected deployments rather than being limited to a single chain.
At the same time, the update raised borrow caps on cbBTC and WBTC, two separate tokenized representations of bitcoin used as collateral on Aave, moving in the opposite direction from the stablecoin reductions. The simultaneous tightening on stablecoins and loosening on bitcoin-backed assets suggests the protocol’s risk managers see different risk profiles currently warranting different treatment between these two asset categories, with bitcoin-backed collateral apparently judged to have room for additional borrowing capacity even as certain stablecoins face tighter limits.
Beyond the cap changes, the update also adjusted an interest-rate parameter: Arbitrum’s USDC market saw its Slope1 rate, a component of the interest-rate curve that governs how borrowing costs rise with utilization, increase from 4.20% to 4.30%. Separately, stablecoin caps on the Mantle and Monad deployments were each cut by half, a more aggressive reduction than seen on the other affected chains, reflecting a more cautious view of stablecoin liquidity depth on those two newer networks specifically.
The breadth of this single update, spanning nine chains and multiple distinct asset categories moving in opposite directions, illustrates the scale and frequency of routine risk management work that keeps a protocol as large as Aave operating across so many deployments simultaneously. The full list of changes is posted on Aave’s own governance forum.
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