LlamaRisk's Risk Stewards have recommended increasing Aave V3 supply caps for osETH from 110,000 to 123,000 (currently at 94.4% utilization) and weETH from 1,075,000 to 1,100,000, alongside a borrow cap increase for xSOL on Aave V3 X Layer from 14,000 to 17,100. The osETH cap increase is particularly notable given that top suppliers carry a median health factor of just 1.02 and borrowing is concentrated almost entirely in WETH via ETH-correlated E-Mode.
For Armada's crypto repo desk, these figures provide live benchmarks for ETH liquid staking token and SOL collateral risk. A median health factor of 1.02 on osETH positions indicates thin margin buffers in DeFi, which Armada should factor into its own LTV and liquidation trigger calibration for ETH LST collateral. The xSOL borrow cap expansion also signals growing SOL borrowing demand on-chain that informs Armada's SOL repo pricing.