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LlamaRisk has proposed higher USDe borrowing costs across five Aave V3 markets, while Aave Labs has separately launched an official AI server for live protocol data and transaction preparation. The September 9 risk recommendation targets Core, Plasma, Monad, Mantle, and Avalanche. The AI server went live on September 8 at mcp.aave.com.
LlamaRisk recommended raising USDe’s base variable borrow rate from 5% to 6% across all five deployments. It also proposed cutting Slope1 by one percentage point in each market. LlamaRisk said the Risk Steward process would implement the changes.
The adjustments would affect markets holding about USD 323.8 million in USDe debt against USD 1.18 billion supplied. At current utilization levels, modeled borrower APRs would increase by 13 to 89 basis points. The changes would tighten costs for users who borrow USDe and recycle it into yield-bearing sUSDe.
How much would the changes alter borrowing costs across the five markets? The answer depends on utilization because the proposal changes two parts of the interest-rate curve. A higher base rate lifts costs, while a lower Slope1 offsets part of that increase.
Avalanche had the highest utilization in the snapshot and would see the smallest modeled increase, at 13 basis points. Mantle had the lowest utilization and would absorb almost the full increase from the higher base rate.
Aave Labs also launched an official server for AI assistants that support the Model Context Protocol. The server covers Aave V3 and V4 through one connection. It lets assistants read protocol data and prepare transactions.
The server uses Aave Kit, which Aave Labs says applies the same calculations as its official interfaces. This includes Hub and Spoke accounting and Risk Premium. The company presented the system as a first-party alternative to independent wrappers already accessing Aave data.
Read tools cover chains, markets, reserves, rates, caps, risk parameters, and historical APY data. They also return protocol deposits, borrows, wallet health factors, rewards, transaction history, and V4 position-level health information.
Most tools accept a version setting of v3, v4, or all. The all setting retrieves both versions at the same time for comparison. Hub-level tools also expose liquidity and accounting data from the Liquidity Hub.
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The server can prepare supply, borrow, withdraw, repay, collateral, eMode, reward-claim, and liquidation transactions. It can also simulate an action and show the resulting health factor before preparing anything. Swap tools cover quotes, preparation, submission, and status checks.
Aave Labs said every prepared transaction returns unsigned. The server holds no private keys and cannot move user funds. Users must approve and sign transaction requests or EIP-712 typed data through their own wallets.
Aave described a liquidation-protection use case in which an agent watches a position’s health factor. If the factor falls below 1.5, the agent prepares a USDC repayment. It then waits for the user’s signature before any transaction proceeds.
The server also trims responses so models receive fewer unnecessary fields. Aave said reserve detail can fall from about 17 KB to about 1 KB. When an input fails, the server returns the rejection reason so the assistant can correct its arguments.
LlamaRisk’s proposal would raise USDe borrowing costs across five Aave V3 markets while adjusting Slope1 to soften the increase at higher utilization. Separately, Aave’s AI server gives assistants live protocol data and transaction-building tools while keeping every final approval and wallet signature with the user.
