KVORUM
aaveSource: Aave governance v3 · #265

Add EURC to BASE Aave V3

executedMar 10, 2025, 09:33 AM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to add EURC (Circle's EUR-backed stablecoin) to Aave V3 on Base network with supply cap of 4.2M EURC and borrow cap of 3.8M EURC, featuring 75% LTV and standard risk parameters. Aims to provide Euro-denominated liquidity for European users and enhance platform appeal.

Type
protocol addition

Key changes

  • Add EURC token to Aave V3 Base with supply cap of 4,200,000 and borrow cap of 3,800,000(high)
  • Configure EURC with LTV of 75%, liquidation threshold of 78%, and 5% liquidation bonus(high)
  • Enable EURC as collateral with borrowing enabled and flashloan support(high)
  • Set variable borrow rates with 0% base rate, 8.5% slope 1, and 40% slope 2 at 90% utilization optimal(medium)
  • Establish 0xac140648435d03f784879cd789130F22Ef588Fcd as emission admin for EURC and corresponding aToken(medium)

Notable concerns

  • EURC is a relatively new stablecoin compared to USDC despite issuer credibility
  • Adoption metrics referenced are from smaller protocols (Morpho 3M, Alien 4M, Aerodome 3M)
  • Debt ceiling set to USD 0 which may limit initial usage
ContractsAaveV3Base
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

391 words

Simple Summary

The current ARFC proposes to add EURC on Base V3. EURC is Circle’s EUR-backed stablecoin, enhancing liquidity and expanding the platform’s appeal to European users. Original proposal was [TEMP CHECK] Add EURC to BASE Aave V3 but has been reformatted to be governance compliant. It has also passed TEMP CHECK Snapshot .

Motivation

EURC is a fully backed stablecoin pegged to the Euro, issued by Circle, the same entity behind USDC. It is a reliable and transparent Euro-denominated asset gaining adoption across DeFi protocols.

  • Utility and Role: EURC facilitates Euro-based transactions in DeFi, allowing for a stable store of value and an efficient medium of exchange within the ecosystem.
  • Backers: Circle is a trusted issuer with a track record of regulatory compliance, providing confidence in EURC’s stability.
  • Performance: EURC has demonstrated consistent performance and adoption within the broader DeFi space such as Morpho (3M), Alien(4M) and Aerodome (3M).
  • Euro Liquidity: EURC will offer Aave users access to Euro-denominated liquidity, appealing to the European market.
  • Broader User Base: Listing EURC could attract new users from Europe, diversifying Aave’s stablecoin offerings.
  • Increased Liquidity: The addition of EURC can enhance liquidity across Aave’s markets, improving lending, borrowing, and trading experiences.

Specification

The table below illustrates the configured risk parameters for EURC

ParameterValue
Isolation Modefalse
BorrowableENABLED
Collateral Enabledtrue
Supply Cap (EURC)4,200,000
Borrow Cap (EURC)3,800,000
Debt CeilingUSD 0
LTV75 %
LT78 %
Liquidation Bonus5 %
Liquidation Protocol Fee10 %
Reserve Factor10 %
Base Variable Borrow Rate0 %
Variable Slope 18.5 %
Variable Slope 240 %
Uoptimal90 %
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED
Oracle0x215f25556f91b30afcf0a12da51c9d4374b22570

Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for EURC and the corresponding aToken.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

0 total

This proposal carries no on-chain actions.

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.