Aave loans on Monad and Arc show narrow liquidation buffers, with health factors between 1.01 and 1.18. On Monad, PT-AUSD collateral must be sold on the market before December 2026 maturity, while Arc’s syrupUSDC positions rely on local buyers or a withdrawal queue on Ethereum that can take up to 30 days. The two largest syrupUSDC positions on Arc hold approximately 97% of supplied syrupUSDC, with health factors of 1.02 and 1.01. LlamaRisk recommends increasing the PT supply cap from 30 to 60 million on Monad and the USDC draw cap from 23 to 46 million on Arc.
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