Aave's Risk Stewards, acting on a LlamaRisk recommendation, have approved doubling the USDm supply cap on the Aave V3 MegaETH instance from 200 million to 400 million. The move is explicitly preemptive, intended to absorb anticipated demand once USDe — Ethena's synthetic dollar — is listed on the same deployment. Current utilization is just 6.8%, meaning the cap increase is forward-looking infrastructure rather than a response to live demand pressure.
For Armada's crypto-repo desk, USDe and USDm are synthetic stablecoin instruments whose DeFi liquidity depth influences benchmark borrow rates. The MegaETH instance is a newer chain deployment, and rapid cap expansion before meaningful utilization is worth tracking as a leading indicator of where institutional DeFi liquidity may concentrate. LTV remains at 0% for USDm as collateral, so direct repo collateral use is not yet implicated, but rate dynamics on this instance will feed into broader benchmark monitoring.