LlamaRisk, acting as Aave V4 Risk Stewards, recommended a set of supply and draw cap increases across multiple stablecoin markets on October 6. Changes include raising the USDT draw cap on the Core Hub Ethena Ecosystem Spoke from 1.5M to 3M, increasing USDG add and draw caps across both the Core Hub Main Spoke and the Global Dollar Hub USDG Maple Spoke, and expanding syrupUSDG add capacity. Slope2 adjustments were also proposed, indicating rate curve recalibration at high utilization.
For Armada's crypto repo desk, Aave V4 stablecoin lending rates serve as a live DeFi benchmark against which institutional borrowers evaluate the cost of crypto-collateralized repo. When Aave expands caps, utilization rates and associated borrow rates typically compress, tightening the spread between DeFi and repo financing. Armada should monitor whether post-cap USDT and USDG rates on Aave V4 compress enough to pressure repo pricing for stablecoin-adjacent collateral deals.