Aave Risk Stewards Cut Borrowing Limits on Mantle While Raising Them Elsewhere

• On Aave V3’s Mantle deployment, the USDT0 supply cap was cut from 312.5 million to 150 million and its borrow cap from 152 million to 125 million, while sUSDe and USDe supply caps were each roughly halved
• On Aave V3 Core, WBTC’s supply cap was reduced from 38,200 to 35,500, BTC.b’s from 225 to 40, and eBTC’s from 134 to 100
• Not every change in the proposal was a reduction: cbBTC’s supply cap on Aave V3 Core was raised from 20,000 to 20,500 even as several other bitcoin-wrapper assets saw their caps cut

A second governance action published by LlamaRisk to Aave’s forum on November 13, 2026 takes a notably different approach from the same-day V4 cap increases described elsewhere in this batch, cutting exposure limits across several Aave V3 markets rather than expanding them. The most substantial reductions target Aave’s deployment on Mantle, a layer-2 network, where the proposal lowers the USDT0 supply cap from 312.5 million to 150 million, a cut of more than half, and its corresponding borrow cap from 152 million to 125 million.

The Mantle deployment saw further reductions beyond USDT0: the sUSDe supply cap falls from 100 million to 65 million and the USDe supply cap from 80 million to 50 million, both roughly halving the available capacity for those Ethena-ecosystem stablecoin assets on that specific deployment. Taken together, the Mantle-focused cuts represent a deliberate, concentrated deleveraging of that particular market rather than a broad, protocol-wide pullback.

On Aave’s main V3 Core market, the proposal also trims caps on several bitcoin-wrapper assets: WBTC’s supply cap falls from 38,200 to 35,500, BTC.b’s falls sharply from 225 to just 40, and eBTC’s falls from 134 to 100. Reducing a supply cap on an asset that already has deposits near or above the new, lower ceiling can effectively freeze further deposits of that asset until usage naturally declines below the new limit.

Not every adjustment in the proposal moved in the same direction, however. cbBTC’s supply cap on Aave V3 Core was actually raised, from 20,000 to 20,500, even as several of its fellow bitcoin-wrapper assets had their caps cut in the same proposal, illustrating how granular and asset-specific this kind of risk management has become, with each wrapper asset evaluated individually rather than treated as a single undifferentiated category.

Risk teams managing large DeFi lending protocols routinely weigh collateral quality, liquidity depth, and concentration risk separately for every individual asset and deployment, which is why a single day’s governance activity can include both substantial cap increases on some markets and sharp reductions on others within the very same protocol. The full proposal is published on Aave’s governance forum.

This post first appeared in Aave Risk Stewards Cut Borrowing Limits on Mantle While Raising Them Elsewhere