Independent Liquidation-Capacity Stress Tests For Aave

An independent, open-source stress-test engine evaluates whether Aave's liquidation bonus is sufficient to clear stressed collateral, reproducing LlamaRisk's July 2026 Linea WETH cap decision with a maximum clearable size of $43,195 versus LlamaRisk's ~$41,000 estimate. On Ethereum mainnet, the largest wstETH borrower's potential $256.52M liquidation sale exceeds instant routed market depth of $2.73M by roughly 94 times, though the authors stress this is a conditional instant-capacity result, not a live bad-debt estimate or a claim that wstETH is unsafe. The work raises a governance question over whether Aave's Risk Framework clearance requirement should be measured against instant routed depth or horizon-adjusted capacity, and shows that V4 mechanics with ordered queue clearing reduce combined-book CVaR99 from $31.82M to $15.25M.