Aave proposes higher caps and rates across Arc, Ethereum and Monad

LlamaRisk’s recommendations are based on observed user behavior, on-chain liquidity, and position health.

Arc’s USDC$0.9998▲0.01% draw cap is fully utilized. The syrupUSDC add cap is 87.8% utilized. On the Ethereum side, the USDe add cap sits at 87.2% utilized. On Monad, PT-AUSD-17DEC2026 has hit 100% of its supply cap.

LlamaRisk proposes doubling the Arc Core Hub USDC Maple Spoke’s USDC draw cap from 23 million to 46 million. The syrupUSDC add cap would move from 25 million to 50 million, also a 100% increase. That 87.8% syrupUSDC utilization rate works out to roughly 21.95 million already added against the current 25 million ceiling, leaving about 3.05 million of headroom before the cap is hit; under the proposed 50 million ceiling, that remaining room would expand to 28.05 million, assuming utilization doesn’t shift in the meantime.

The governance post does not establish an implementation date.

Ethereum caps and rates

The Aave V4 Ethereum Plus Hub Ethena Ecosystem Spoke has eight proposed changes. USDe’s add cap would rise from 30 million to 40 million — a 33.3% increase — with LlamaRisk noting that 87.2% of the current 30 million limit is already absorbed, equivalent to about 26.16 million. USDC$0.9998▲0.01% and USDT$0.9993▼0.01% would each see their add caps double from 6 million to 12 million. Both assets’ draw caps would move from 6.375 million to 12 million, an 88.2% increase that adds 5.625 million of capacity over today’s ceiling.

Slope1 for USDC on the Plus Hub would increase from 4.50% to 4.60%, a 2.2% relative move. USDT’s slope1 receives the identical change. USDe’s base rate would climb from 6.30% to 6.60%, a 4.8% increase.

For borrowers, the rate changes mean a higher slope1 on USDC and USDT and a higher base rate on USDe. For liquidity providers, the cap changes create room for additional deposits and borrowing activity. The proposed figures are limits, not reported flows, and the proposal itself does not state how quickly any newly available capacity would be used.

Monad at the ceiling

PT-AUSD-17DEC2026 on Aave V3 Monad is out of room. LlamaRisk recommends doubling its supply cap from 30 million to 60 million, which would add 30 million of stated capacity and take the market from zero remaining headroom to 30 million of potential additional supply. The Monad proposal does not include a rate adjustment, and the governance post does not specify a timeline for execution.

POL borrowing on Polygon

A separate Aave Governance discussion takes up a restriction on Polygon v3. Right now, borrowing POL is enabled only within the MaticX/POL eMode. MaticX has been sunset, which means borrowers holding ETH, WBTC, or USDC as collateral currently have no path to borrow POL on Polygon v3 at all.

The discussion proposes enabling general collaterals for POL borrowing, which would remove that restriction. Borrowers using ETH, WBTC, or USDC would gain access to POL borrowing; liquidity providers would face a broader set of potential borrowing positions. The source does not provide a proposed cap, liquidation parameters, or implementation date.