A direct-to-AIP governance proposal raises Aave’s blended reserve factor across 54 markets on both V2 and V3 from 12.0% to 12.7% Plasma’s USDT0 market reserve factor rises from 5% to 7.5% and
A governance proposal published to Aave’s forum by risk-management firm TokenLogic on November 12, 2026 raises the protocol’s reserve factor, the share of interest paid by borrowers that flows to Aave’s treasury rather than to depositors, across 54 separate markets spanning both the Aave V2 and V3 deployments. Taken together, the changes push Aave’s blended reserve factor from 12.0% to 12.7%, a modest-sounding shift that nonetheless touches a large share of the protocol’s total active markets at once.
Several individual market changes within the proposal stand out for their scale. On Plasma, a newer deployment, the USDT0 stablecoin market sees its reserve factor rise from 5% to 7.5%, while the GHO market on the same deployment jumps from 5% to 10%. TokenLogic’s proposal estimates these two changes alone will generate more than $1.08 million in combined additional annual revenue for the protocol, reflecting substantial borrowing activity already concentrated in those specific markets.
The proposal also raises reserve factors on Avalanche markets, projected to add roughly $1.2 million in annual revenue, and standardizes reserve factors on bitcoin, liquid-staking-token and liquid-restaking-token wrapper assets to 100%, a change expected to add a further $173,000 annually. Setting a wrapper asset’s reserve factor to 100% means essentially all interest paid by borrowers of that asset flows to the protocol treasury rather than being shared with depositors, a structure that reflects how those wrapped assets are typically used more for collateral efficiency than as a yield-bearing deposit for ordinary lenders.
A separate, more symbolic change in the same proposal affects Aave’s legacy V2 deployment on Ethereum, where frozen reserves, markets no longer accepting new deposits or borrows, have their reserve factor raised to 99.99%. With those markets frozen, raising their reserve factor to near 100% ensures that any remaining interest still accruing on outstanding legacy positions flows almost entirely to the Aave treasury rather than to the shrinking pool of depositors still holding positions there.
The proposal moved through governance as a direct-to-AIP action, a governance pathway Aave uses for parameter adjustments that risk teams consider routine enough not to require the protocol’s full multi-stage proposal process, reflecting how frequently and incrementally Aave’s risk parameters are now tuned across its many markets. The full proposal is published on Aave’s governance forum.
This post first appeared in Aave Raises Reserve Factors Across 54 Markets, Pushing Its Blended Rate to 12.7%
