Add XAUt to Aave v3 Core Instance
01Summary
Proposal to add Tether's XAUt (gold-backed stablecoin) to Aave v3 Core Instance as collateral with conservative risk parameters including 70% LTV, $3M debt ceiling, 5,000 XAUt supply cap, and borrowing disabled to diversify protocol offerings and enable gold-backed asset lending.
- Type
- protocol addition
Key changes
- Add XAUt (Tether gold-backed stablecoin) as collateral asset to Aave v3 with Chainlink XAU/USD oracle(high)
- Enable XAUt in Isolation Mode with 70% LTV and 75% liquidation threshold to limit risk exposure(high)
- Disable XAUt borrowing while enabling it as collateral with 5,000 XAUt supply cap and $3M debt ceiling(high)
- Set 20% reserve factor and configure variable borrow rates (10% slope 1, 300% slope 2 at 45% utilization)(medium)
- Enable flashloan functionality for XAUt(medium)
Notable concerns
- XAUt borrowing is disabled (borrow cap of 1), limiting some use cases while reducing protocol risk
- Isolation mode restricts cross-collateralization with other assets
- High variable slope 2 rate of 300% creates significant borrowing costs at high utilization
Generated by Kvorum
02Description
Simple Summary
The proposal aims to onboard Tether’s XAUt gold-denominated stablecoin, to the Aave v3 Core Instance.
Motivation
XAUt is a gold backed digital currency offered by Tether.
XAUt represents a unique opportunity to bring gold-backed assets into DeFi lending markets. Adding XAUt to Aave v3 would:
- Diversify the protocol’s offerings with a historically stable store of value
- Enable users to use gold-backed tokens as collateral or for lending, creating new DeFi use cases
- Allow users a hedge against market volatility through exposure to physical gold
- Attract traditional finance users who are familiar with gold as an asset class
The addition of XAUt aligns with Aave’s goal of expanding DeFi accessibility while maintaining strong risk management practices through the use of established, well-backed assets.
Specification
The table below illustrates the configured risk parameters for XAUt
| Parameter | Value |
|---|---|
| Isolation Mode | true |
| Borrowable | DISABLED |
| Collateral Enabled | true |
| Supply Cap (XAUt) | 5,000 |
| Borrow Cap (XAUt) | 1 |
| Debt Ceiling | USD 3,000,000 |
| LTV | 70 % |
| LT | 75 % |
| Liquidation Bonus | 6 % |
| Liquidation Protocol Fee | 10 % |
| Reserve Factor | 20 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 10 % |
| Variable Slope 2 | 300 % |
| Uoptimal | 45 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
oracle details
| Parameter | Value |
|---|---|
| Oracle | Chainlink XAU/USD |
Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for XAUt and the corresponding aToken.
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows Aave's standard governance payload pattern: the on-chain action is a single execute() call (delegatecall/fallback) to a pre-deployed payload contract. This contract's internal logic (verified via the linked GitHub implementation and test files) is expected to contain the exact listing parameters described in the prose (isolation mode, caps, LTV/LT, rate curve, oracle assignment, emission admin). Because the decoded calldata exposes no arguments beyond the target address and function selector, it is not possible to directly verify each numeric parameter (LTV, caps, debt ceiling, rate curve, etc.) or the oracle/emission-admin addresses against the calldata itself — this is inherent to how Aave's on-chain payload execution works and not a sign of misrepresentation. There is no evidence of a target mismatch, omitted action, or extra claim: the single action target is consistent with a listing payload, and the description's claims (new reserve listing, oracle assignment, emission admin) are all things such a payload contract typically performs. Given the opacity of the calldata (no decoded parameters to cross-check), confidence in this assessment is necessarily low, but no discrepancy is apparent from what is available, so the overall assessment defaults to consistent rather than flagging a false alarm.
Generated by Kvorum
04Actions
- Target
- 0xd230…a88b
- 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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