Aave V3 Risk Stewards, advised by LlamaRisk, approved two supply cap increases: syrupUSDT on the Core instance rises from 27.2M to 50M after hitting 99.9% utilization, and xBTC on X Layer increases from 300 to 500 units. The syrupUSDT pool shows highly concentrated borrowing in USDT at 98.9% of total debt, with top suppliers holding a median health factor of just 1.02, indicating thin liquidation buffers despite correlated oracle mitigants.
For the Crypto Repo desk, the xBTC cap increase is the more directly relevant data point: it reflects rising institutional demand for BTC exposure in DeFi lending markets, tightening on-chain BTC liquidity that competes with Armada's repo offerings. The syrupUSDT concentration and 1.02 health factor figures are a useful stress benchmark. If Armada holds comparable concentrated positions, liquidation buffer standards should be reviewed against these on-chain analogs.