Aave supply and borrow caps explained
Supply and borrow caps limit how much of an asset Aave accepts. Learn why they exist, what happens at the cap, and how Aave freezes or shuts an asset.
By Mark Ellis ยท Updated
Every asset on Aave has limits on how much of it the protocol will accept. Supply and borrow caps are among the main risk controls in Aave V3, alongside isolated E-Mode categories and the ability to freeze or pause an asset. Here is what each one does and what it means for you.
What supply and borrow caps are
- Supply cap: the maximum total amount of an asset that can be deposited in one market.
- Borrow cap: the maximum total amount of that asset that can be borrowed from the market.
Caps are set in token units, not dollars, and they apply to all users combined, not to each user. At the time of writing (September 2026), USDC on the Ethereum Core market had a supply cap of 3 billion USDC and a borrow cap of 2.7 billion USDC. About 2.38 billion was supplied, roughly 79% of the supply cap, and about 2.21 billion was borrowed, roughly 82% of the borrow cap.
Why governance sets them
Aave pools share risk. If one collateral asset crashes, or its price is manipulated, bad debt can land on the whole market. Caps put a ceiling on that exposure.
- Liquidation capacity. When loans are liquidated, the collateral has to be sold somewhere. If far more of a token sits in Aave than exchanges can absorb, liquidations stop working well. Supply caps keep the amount in line with real trading liquidity.
- New or thinly traded assets. These start with small caps that are raised step by step.
- Price attacks. Borrow caps limit how much of a token can be borrowed and sold in an attempt to move its price.
Caps are proposed by risk service providers, approved through Aave governance, and adjusted regularly.
What happens when a cap is reached
A transaction that would push the total past the cap simply fails. Nothing happens to positions that already exist.
| Action | Supply cap reached | Borrow cap reached |
|---|---|---|
| New deposits of the asset | Blocked | Allowed |
| New borrows of the asset | Allowed | Blocked |
| Withdraw or repay | Allowed | Allowed |
| Interest on existing positions | Continues | Continues |
Because interest keeps accruing, totals can drift slightly above a cap. Room opens up again when other users withdraw or repay, or when governance raises the cap.
A cap can also be used to shut an asset. When Aave winds one down, it often sets the cap to just 1 token, far below what is already supplied or borrowed. The cap then reads as full, and no new deposits or loans are possible, while existing positions carry on until they are closed.
From isolation mode to isolated E-Mode
Until 2026, some newer assets were listed as isolated collateral. While you used one as collateral, it was the only collateral that counted, you could only borrow certain stablecoins, and a debt ceiling capped the total debt all users together could take against it.
Aave version 3.7 removed isolation mode, and was rolled out across Aave V3 in April and May 2026. The same job is now done by isolated E-Mode categories: such a category counts only the assets it lists as collateral, so a newer asset can be listed without exposing the whole market to it. See E-Mode explained.
Frozen vs paused
Governance, or an emergency guardian it has appointed, can also restrict an asset entirely.
| State | New supply and borrow | Repay and withdraw | Liquidations |
|---|---|---|---|
| Active | Yes | Yes | Yes |
| Frozen | No | Yes | Yes |
| Paused | No | No | No |
Freezing is the usual way to wind an asset down: nobody can add exposure, but everyone can leave. Pausing stops everything and is reserved for emergencies, such as a suspected exploit of the token.
How to check an asset
Each asset page on this site shows how much of the supply and borrow cap is in use, and whether the asset is frozen or paused. Start from all markets, or go straight to an example such as USDC on Ethereum. Caps sit alongside the rate curve as a second brake on borrowing, which is covered in how Aave interest rates work.
Common questions
What happens to my deposit if the supply cap is reached?
Nothing. Your deposit keeps earning interest and you can withdraw as usual. Only new deposits that would push the total past the cap are blocked.
Can I repay my loan when the borrow cap is reached?
Yes. Caps only block new supply or new borrowing. Repaying and withdrawing are always allowed while the asset is active or frozen.
Who sets supply and borrow caps on Aave?
Aave governance sets them, usually on the recommendation of risk service providers, and adjusts them as liquidity and market conditions change.
What is the difference between a frozen and a paused asset?
A frozen asset accepts no new supply or borrowing, but users can still repay, withdraw and be liquidated. A paused asset allows no actions at all until it is unpaused.