LlamaRisk's risk stewards proposed on June 17, 2026, to increase the USDT0 supply cap on Aave V3 Mantle from $250M to $312.5M and the borrow cap from $225M to $281.25M, driven by supply utilization hitting 97.7% and borrow utilization reaching 88.3%. Supply is highly concentrated, with the top three positions representing roughly 97% of the reserve, and USDT0 is not enabled as collateral on this instance.
For Armada's crypto repo desk, Aave V3 borrow rates serve as a DeFi benchmark against which institutional crypto repo pricing is calibrated. Sustained near-cap utilization in a major stablecoin reserve indicates elevated on-chain borrowing demand, which can push DeFi rates higher and make Armada's off-chain repo rates more competitively attractive. The concentration risk in the supply side also flags potential liquidity fragility if large positions unwind.