LlamaRisk, acting as Aave V3 risk steward, has proposed increasing the stcUSD supply cap on MegaETH from 10M to 20M and the syrupUSDC cap on Monad from 40M to 80M, while simultaneously reducing the sUSDe supply cap on Monad where launch caps exceed realized usage. The rationale for the increases is demonstrated demand, but the risk team explicitly flagged that consumption is driven by a small number of leveraged looping positions operating near liquidation thresholds — a concentration risk that warrants ongoing monitoring.
For Armada's crypto repo desk, this is a direct benchmark signal. When looping positions dominate cap utilization at Aave, rapid deleveraging can compress stablecoin and ETH market depth quickly. Armada's collateral policy for stablecoin-denominated crypto repo should account for this when setting LTV ratios and liquidation buffers on positions that reference these same assets.