Risk Stewards: Supply Cap Reductions on Aave V3 / 2026.08.18

LlamaRisk recommends reducing the tBTC supply cap on Aave V3 Core from 2,500 to 1,800, noting current cap utilization of 70.1% (1,752 of 2,500) and that tBTC supply has contracted over the trailing thirty days. The proposed cap of 1,800 is approximately 1.03x the current outstanding supply, implying roughly 97.3% post-change cap utilization, with no change recommended to the borrow cap. The updates will be implemented via the Risk Steward process, and LlamaRisk discloses it is a DeFi risk service provider funded in part by the Aave DAO and independent of the reviewed protocol.