Risk Stewards: IRM Changes on Aave V3 Monad / 2026.08.13

LlamaRisk recommends raising optimal utilization from 90% to 92% and reducing Slope2 from 40% to 20% for the USDC, USDT0, and GHO reserves on Aave V3 Monad, citing utilization spikes that drove variable borrow APYs to 12.36% for USDC and 20.35% for USDT0. The change would lower the full-utilization borrow rate from 44% to 24%, add roughly $6.13M of borrowable capacity, and reduce the withdrawal buffer from 10% to 8% of supply, while slightly increasing supply APR at the optimal point from 3.24% to 3.31%. The report notes supply is concentrated, with the largest positions (including one debt-free address holding the top USDC and USDT0 positions) already exceeding liquidity buffers, and the updates will be implemented via the Risk Steward process.