Aave V3 could add a “speed limit” for large loans.
On 11/11/2026, LlamaRisk posted its LlamaGuard Caps proposal on the Aave forum. The mechanism would limit how quickly debt grows in each pool, giving the emergency response team more time to investigate and address suspicious borrowing activity.
The idea is fairly easy to picture. Each pool makes available only part of the unused borrowing capacity above its current debt. When that portion is nearly exhausted, the system waits for a while before replenishing it. A loan that exceeds the available portion may need to be split up and wait for subsequent rounds. For large borrowers who have been approved, the proposal includes a separate process through the risk management group.
The trade-off is that legitimate large borrowers could also face delays. So I’ll be watching how the caps are calibrated for each pool and what authority there is to grant large borrowers additional capacity. If that authority is too broad, the limits may do less to curb the flow of funds; if it’s too restrictive, genuine demand could be blocked.
As of 12/11, this is still an ARFC proposal open for feedback. If it reaches consensus, it will still need to go through Snapshot and then an AIP before implementation.
Would you be willing to wait longer when taking out a large loan so the protocol has time to respond to an incident?
Source — LlamaRisk, Aave governance forum, 11/11/2026.
$AAVE $ETH $AVAX
On 11/11/2026, LlamaRisk posted its LlamaGuard Caps proposal on the Aave forum. The mechanism would limit how quickly debt grows in each pool, giving the emergency response team more time to investigate and address suspicious borrowing activity.
The idea is fairly easy to picture. Each pool makes available only part of the unused borrowing capacity above its current debt. When that portion is nearly exhausted, the system waits for a while before replenishing it. A loan that exceeds the available portion may need to be split up and wait for subsequent rounds. For large borrowers who have been approved, the proposal includes a separate process through the risk management group.
The trade-off is that legitimate large borrowers could also face delays. So I’ll be watching how the caps are calibrated for each pool and what authority there is to grant large borrowers additional capacity. If that authority is too broad, the limits may do less to curb the flow of funds; if it’s too restrictive, genuine demand could be blocked.
As of 12/11, this is still an ARFC proposal open for feedback. If it reaches consensus, it will still need to go through Snapshot and then an AIP before implementation.
Would you be willing to wait longer when taking out a large loan so the protocol has time to respond to an incident?
Source — LlamaRisk, Aave governance forum, 11/11/2026.
$AAVE $ETH $AVAX
