Aave Risk Stewards Raise Supply and Borrow Caps Across Several V4 Markets

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• LlamaRisk raised Aave V4 supply caps on wstETH from 30,000 to 40,000, weETH from 25,000 to 35,000, and USDC on Ethereum Core from 75 million to 85 million
• On Avalanche, the USDt supply cap rose from 110 million to 150 million and the USDe supply cap from 120 million to 150 million
• Borrow caps were raised as well, including USDC on Ethereum Core from 50 million to 60 million and USDt on Avalanche’s Ethena Ecosystem market from 100 million to 140 million

A governance action published to Aave’s forum by risk-management firm LlamaRisk on November 13, 2026 raises supply and borrow caps across several markets on Aave’s newer V4 deployment, acting under the protocol’s Risk Steward process, a governance pathway that allows designated risk teams to make routine, data-driven parameter adjustments without a full multi-stage proposal vote. The proposal frames the increases as a direct response to observed user behavior, liquidity depth, and overall position health across the affected markets.

On the supply side, the proposal raises caps on several assets within Aave V4’s Ethereum Core market: wstETH rises from 30,000 to 40,000, weETH from 25,000 to 35,000, and USDC from 75 million to 85 million. These increases allow more of each asset to be deposited into the respective market before hitting a ceiling, effectively expanding the pool of available liquidity that borrowers can draw against.

The Avalanche side of the protocol saw some of the largest percentage increases in the proposal. The USDt supply cap on Avalanche’s Core market rises from 110 million to 150 million, while USDe, part of Avalanche’s Ethena Ecosystem market, rises from 120 million to 150 million, reflecting what the proposal describes as strong, sustained demand in those specific pools.

Borrow caps, which separately limit how much of a given asset can be borrowed against the deposited supply, were also raised in several places: USDC on Ethereum Core rises from 50 million to 60 million, EURC on the Bluechip market rises from 300,000 to 600,000, and USDt on Avalanche’s Ethena Ecosystem market rises from 100 million to 140 million. Raising a borrow cap independently of its corresponding supply cap allows a market to support more active borrowing against existing deposits without necessarily attracting more new deposits first.

Routine cap adjustments like this one have become a near-constant feature of how major DeFi lending protocols manage growth, with risk teams continuously recalibrating dozens of individual parameters across multiple markets and chains in response to shifting usage patterns rather than making occasional, large-scale changes. The full proposal is published on Aave’s governance forum.