Add EURC to Aave V3 Core Instance
01Summary
Add EURC (Circle's EUR-backed stablecoin) to Aave V3 Core Instance with specified risk parameters including 7M supply cap, 75% LTV, and 6% base variable borrow rate to enhance Euro liquidity and attract European users.
- Type
- protocol addition
Key changes
- Add EURC token to Aave V3 Core Instance as a borrowable collateral asset(high)
- Set supply cap at 7,000,000 EURC and borrow cap at 6,500,000 EURC(high)
- Configure LTV at 75% and liquidation threshold at 78% with 5% liquidation bonus(high)
- Enable flashloan functionality for EURC(medium)
- Set base variable borrow rate at 0% with variable slope 1 at 6% and slope 2 at 50%(high)
- Designate lm.aci.eth as emission admin for EURC and corresponding aToken(medium)
Notable concerns
- Debt ceiling set to USD 0, limiting cross-chain collateral usage
- New asset integration requires monitoring of adoption and liquidity performance
Generated by Kvorum
02Description
Simple Summary
The current AIP proposes to add EURC on Aave V3 Core Instance.
EURC is Circle’s EUR-backed stablecoin, enhancing liquidity and expanding the platform’s appeal to Euro denominated users.
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
| Parameter | Value |
|---|---|
| Isolation Mode | false |
| Borrowable | ENABLED |
| Collateral Enabled | true |
| Supply Cap (EURC) | 7,000,000 |
| Borrow Cap (EURC) | 6,500,000 |
| Debt Ceiling | USD 0 |
| LTV | 75 % |
| LT | 78 % |
| Liquidation Bonus | 5 % |
| Liquidation Protocol Fee | 10 % |
| Reserve Factor | 10 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 6 % |
| Variable Slope 2 | 50 % |
| Uoptimal | 90 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
Pricefeed details
| Parameter | Value |
|---|---|
| Oracle | Capped EURC/USD |
| Asset to USD Oracle | Chainlink EURC/USD |
| Base to USD Oracle | Chainlink EUR/USD |
| Price Cap Ratio | 4% |
| Oracle Latest Answer | (2025-06-22) USD 1.15156086 |
Additionally lm.aci.eth has been set as the emission admin for EURC and the corresponding aToken.
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded calldata consists of a single generic call to execute() on an external payload contract, which is the standard pattern used by Aave governance proposals (the 'Direct-to-AIP' flow referenced in the description). All granular listing parameters (LTV, LT, caps, oracle addresses, emission admin, etc.) are implemented inside that payload contract's Solidity code, not exposed as decoded arguments in this proposal action. Because the decoded action gives no visibility into the specific risk parameters, oracle addresses, or emission admin assignment, it is not possible to directly verify or contradict the numeric and address claims in the description against the calldata. However, this is the expected and routine structure for Aave V3 listing proposals, and there is no evidence of a mismatched target, hidden transfer, or unrelated action. Given the lack of granular on-chain detail, confidence in this comparison is low, but nothing in the available calldata contradicts the description, so the assessment defaults to consistent.The user user winning discrepancies key name has a space in it
Generated by Kvorum
04Actions
- Target
- 0xe690…b41b
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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