Aave V4’s Arc market is swimming in $76 million of USDC nobody is borrowing

Aave V4 went live on the Arc Layer-1 network on Sept. 16 and attracted USDC almost immediately. By Sept. 17, point-in-time Aavescan data showed roughly $76 million supplied, less than $100,000 borrowed, and utilization near 0.1%.Suppliers quickly filled the market’s initial capacity, but borrowers had put almost none of that liquidity to work.LlamaRisk responded to the deposit rush by proposing an increase in the Arc Main Spoke’s USDC add cap from 56 million to 150 million tokens. The balance later moved above the former ceiling, showing that 56 million was no longer binding.However, the governance post and live market page did not identify the exact replacement setting as executed.What Arc’s full cap actually measuredAave V4 organizes liquidity through hubs and spokes. A hub holds liquidity, while spokes define how users interact with it. An add cap limits how much of an asset a spoke can supply into its hub.Aave’s technical analysis describes them as the V4 equivalents of supply and borrow caps.Arc’s Main Spoke launched with a 56 million USDC add cap and a 51 million USDC draw cap. LlamaRisk reported that the add cap reached 100% within hours, with 56 million USDC valued at about...