LlamaRisk’s 23 October Aave V4 review recommends setting two USDG Pendle Spoke draw caps to zero: a 4 million line from the Global Dollar Hub and a 15 million line from the Core Hub. The collateral, PT-USDG-24SEP2026, matured on 24 September.

Closing access without cancelling debt

The assessor says the change would prevent additional borrowing against the matured principal token. Its snapshot records no USDG debt on the Global Dollar line and 25 USDG on the Core line. Existing debt would remain repayable.

The same review recommends a Plus Hub USDC and USDT rate-slope increase from 4.60% to 4.70%, alongside selected cap increases elsewhere. It also identifies concentrated USDG supply on the Maple Spoke. These are dated review findings, not current liquidity measurements or executable lending quotes.

LlamaRisk says it intends to implement the package through the Risk Steward process. NetNapz has not independently verified execution. The provider discloses partial funding by Aave DAO.

NetNapz assessment: capacity and risk are separate questions

NetNapz assessment: The important distinction is between permission to take a new loan and the obligation to repay an existing one. A borrower should not read a proposed zero borrowing limit as debt forgiveness. Nor does unused capacity elsewhere establish that funds will be available when needed.

For suppliers, a larger permitted market does not by itself demonstrate broader participation. Assessing resilience requires examining who supplies funds, whether large positions depend on similar strategies and how readily liquidity can leave. A parameter change can alter capacity without resolving those questions.

The proposed interest-rate adjustment also should not be treated as a promised return. A lending position’s economics depend on utilization, fees and the conditions that actually apply after implementation. The next useful reporting milestone is an identifiable execution record and a comparison of deployed settings with the recommendation.

Scope and verification

NetNapz checked the dated governance review and existing site coverage on 25 October. This report concerns Aave’s V4 risk management, separate from the USDG Arbitrum listing assessment. No independent contract audit or live position test was performed.