Aave Proposes Automating Risk Management for Pendle Collateral on Plasma

Aave is moving toward automated risk management for its Plasma deployment. A governance proposal, which began on October 1, 2026, seeks to register LlamaRisk’s LlamaGuard PT agents to handle collateral settings for the PT-sUSDe-22OCT2026 asset.

These agents utilize Chainlink’s Runtime Environment to execute risk decisions directly on-chain, removing the need for manual intervention for every update. The scope of these adjustments includes liquidation thresholds and smoothed interest rates.

The asset in question has seen significant supply, with the proposal citing over $45 million supplied, while other market data indicated approximately $37 million on Plasma. Current settings for the October 2026 maturity include a 150 million supply cap.

To manage risk, the proposal includes specific guardrails. Discount rate updates are limited to 100 basis points with a mandatory 2-day cooldown. E-Mode parameters are subject to stricter limits, capped at 50 basis points per update with a 3-day minimum interval.

Aave governance retains ultimate control, as agents must be registered through the governance process and emergency protocols remain in place. This move follows a similar transition to automated execution on Ethereum, which occurred in early September 2026.

Pendle principal tokens function as claims on underlying assets at a future date, causing their fair value to fluctuate as the maturity date approaches. Users often deposit these tokens into E-Mode on Aave to access favorable borrowing terms for leveraged strategies.

For users on Plasma, this transition aims to provide more frequent, incremental adjustments to collateral parameters. The expansion to Plasma suggests that Aave governance is increasingly comfortable with using registered agents to manage risk across multiple networks.