LlamaRisk’s 24 October recommendation supports listing USDG on Aave V3 Arbitrum with a 30 million supply cap and a 27 million borrow cap. The latter is 600,000 below TokenLogic’s 8 October proposal. Both configurations exclude USDG from collateral use.

A recommendation, not a live listing

The risk provider recommends a 4.5% first variable-rate slope, compared with the proposer’s 4%, alongside 90% optimal utilisation and a 10% reserve factor. It also supports a Chainlink USDG/USD feed with a stable-price adapter capped at $1.04 on upward moves. That cap is an oracle setting, not a guarantee of redemption or protection against a falling market price.

TokenLogic’s proposal places feedback, service-provider review and AIP voting ahead of launch. NetNapz has not verified an approved vote or executed deployment. The new assessment does not establish either milestone.

Arbitrum adds an upgradeable bridge wrapper

In its full assessment, LlamaRisk identifies Arbitrum’s upgradeable wrapper as a difference from the non-upgradeable wrappers on Ethereum, Ink and X Layer. It rates the associated control risk medium.

The review says one Paxos administrator can change bridge verifiers, limits and wrapper implementation without delay. Token upgrades and role changes have a 24-hour timelock, while pause, freeze and balance-wipe powers remain immediate. These are the assessor’s findings from its reviewed configuration, not a new independent NetNapz code audit.

Liquidation liquidity also needs to be on the right chain at the right time. LlamaRisk explains that a flash-loan liquidation must acquire USDG on Arbitrum within the transaction. Buying on Ethereum and bridging beforehand can fund repayment, but cannot complete inside that liquidation call. Its liquidity measurements date mainly to 20 October, with a separate Ethereum comparison on 22 October; they are not current executable quotes.

Issuer context and NetNapz assessment

Global Dollar’s issuer information describes USDG as a dollar-pegged stablecoin redeemable one-for-one through Paxos. Issuer redemption and immediate secondary-market liquidity are different mechanisms.

NetNapz assessment: Disabling collateral use limits one route for USDG price changes to affect borrowing capacity, but does not remove debt-repayment, issuer or bridge dependencies. The practical next checks are the final governance parameters and execution record. A supportive assessment should not be presented as an available lending product.

Verification limits

NetNapz checked the proposal, LlamaRisk’s dated assessment and issuer information on 25 October. No live liquidity test, deployed-bytecode audit or completed governance execution was independently verified. This report concerns Aave market onboarding, separate from Arbitrum’s previously reported USDG incentive proposals.