LlamaRisk submitted governance proposals on July 23 to raise LTV from 88.52% to 88.62% and liquidation threshold from 90.52% to 90.62% for PT-srUSDe October 2026 positions on Aave V3 Ethereum Core and Plasma, with parallel updates to USDe E-Mode categories. The rationale is that residual price risk compresses as the principal token approaches its October 22 maturity, justifying tighter LTV-to-LT spreads without changing the liquidation bonus.
Armada's crypto desk should track Aave E-Mode LTV levels as a real-time market benchmark for what sophisticated DeFi risk managers consider appropriate leverage on yield-bearing stablecoin collateral. If Armada accepts similar PT or structured stablecoin instruments as collateral, current haircut levels should be reviewed against the 88-91% LTV range Aave is applying and stress-tested for liquidity at the October maturity date.