Add MetaMask USD (mUSD) to Aave V3 Ethereum/Linea
01Summary
Proposal to onboard MetaMask USD (mUSD), a dollar-backed stablecoin issued by Bridge and powered by M0, to Aave v3 Core on Ethereum and Linea. mUSD will be borrowable but not usable as collateral, with supply caps of 10M on Ethereum and 70M on Linea.
- Type
- protocol addition
Key changes
- Add mUSD as borrowable asset on Ethereum with 10M supply cap and 8M borrow cap(high)
- Add mUSD as borrowable asset on Linea with 70M supply cap and 60M borrow cap(high)
- Set mUSD with 0% LTV and 0% LT, preventing use as collateral(high)
- Enable flashloan functionality for mUSD(medium)
- Set 20% reserve factor and variable borrow rates (6.5% slope 1, 60% slope 2) with 80% Uoptimal(medium)
Notable concerns
- mUSD cannot be used as collateral (0% LTV/LT), limiting utility for leveraged positions
- New stablecoin with issuer (Bridge) and infrastructure provider (M0) concentration risks
- Larger supply cap on Linea (70M vs 10M on Ethereum) reflects different ecosystem maturity levels
Generated by Kvorum
02Description
Simple Summary
This publication proposes onboarding MetaMask's mUSD stablecoin to the Core instance of Aave v3 on Ethereum and Linea.
Motivation
MetaMask USD (mUSD) is a dollar-denominated stablecoin natively integrated into MetaMask. mUSD is issued by Bridge, a Stripe company, and stablecoin issuance and orchestration platform. On-chain MetaMask USD is powered by M0, a decentralized stablecoin infrastructure and liquidity platform. mUSD will be deeply integrated into MetaMask’s wallet, offering users a seamless, dollar-denominated stablecoin experience for holding, spending, and transacting in web3.
Key properties
- Wallet-native: deeply integrated across MetaMask UX and supported dapps.
- Multi-chain at launch: Ethereum Mainnet and Linea and will play a foundational role in the growing Linea DeFi ecosystem and network expansion.
- Interoperable: designed for cross-chain liquidity via the M0 network.
- Transparency-first: reserve management by Bridge with real-time reporting. mUSD is fully backed 1:1 by high-quality, liquid dollar-equivalent assets. Bridge provides real-time transparency reporting, with independent attestations to follow. The launch aligns with new U.S. regulatory clarity under the GENIUS Act.
Payments & MetaMask Card
mUSD supports on-ramps, swaps, bridging, and will soon be spendable via the MetaMask Card at millions of Mastercard merchants.
Specification
The table below illustrates the configured risk parameters for mUSD on Ethereum.
| Parameter | Value |
|---|---|
| Isolation Mode | false |
| Borrowable | ENABLED |
| Collateral Enabled | false |
| Supply Cap (mUSD) | 10,000,000 |
| Borrow Cap (mUSD) | 8,000,000 |
| Debt Ceiling | USD 0 |
| LTV | 0 % |
| LT | 0 % |
| Liquidation Bonus | 0 % |
| Liquidation Protocol Fee | 0 % |
| Reserve Factor | 20 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 6.5 % |
| Variable Slope 2 | 60 % |
| Uoptimal | 80 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
| Oracle | 0xf22de319901C3b9BAEc7Fa14FdF013Ede40E7312 |
Oracle
| Parameter | Value |
|---|---|
| Oracle address | Capped mUSD / USD |
| Underlying | mUSD / USD |
| last answer | (2025-11-24) USD 0.99995036 |
The table below illustrates the configured risk parameters for mUSD on Linea.
| Parameter | Value |
|---|---|
| Isolation Mode | false |
| Borrowable | ENABLED |
| Collateral Enabled | false |
| Supply Cap (mUSD) | 70,000,000 |
| Borrow Cap (mUSD) | 60,000,000 |
| Debt Ceiling | USD 0 |
| LTV | 0 % |
| LT | 0 % |
| Liquidation Bonus | 0 % |
| Liquidation Protocol Fee | 0 % |
| Reserve Factor | 20 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 6.5 % |
| Variable Slope 2 | 60 % |
| Uoptimal | 80 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
| Oracle | 0xB8454f3b48395103F23c88B699d4F6A81fD1DCff |
Oracle
| Parameter | Value |
|---|---|
| Oracle address | Capped mUSD / USD |
| Underlying | mUSD / USD |
| last answer | (2025-11-24) USD 0.99974795 |
References
- Implementation: AaveV3Ethereum, AaveV3Linea
- Tests: AaveV3Ethereum, AaveV3Linea
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded calldata contains only one action: a bare execute()/fallback call to a contract on Ethereum (chain_id 0x1) with no decoded arguments. This is consistent with Aave's standard governance pattern where a purpose-built payload contract is deployed and the DAO vote simply triggers its execute() function, which then performs the actual reserve listing, cap-setting, and oracle configuration internally via delegatecall. Because no arguments are decoded, none of the specific numeric parameters in the description (supply/borrow caps, LTV, reserve factor, rate curve, oracle addresses) can be directly verified against the calldata — this is expected for this proposal type and is not itself a red flag, but it does limit confidence in a line-by-line comparison. The more notable observation is that the description commits to onboarding mUSD on two chains (Ethereum and Linea) via two separate payload contracts, yet the calldata provided here shows only a single action on Ethereum, with no corresponding Linea action or cross-chain trigger visible. This could simply reflect that the Linea execution is bundled elsewhere or triggered by governance infrastructure not shown here, but from the calldata alone, the Linea commitment is unverified. Given the opacity of the execute() call and the missing second-chain action, confidence is low, but nothing in what is visible actively contradicts the description, so this is treated as a minor discrepancy rather than material or severe.
Discrepancies
- mediumextra in description
The description explicitly proposes onboarding mUSD on both Ethereum AND Linea, and references two separate payload contracts (AaveV3Ethereum and AaveV3Linea). However, the decoded on-chain actions only show a single execute() call targeting chain_id 0x1 (Ethereum). There is no visible action targeting Linea (or a cross-chain messaging call that would trigger the Linea payload), so based solely on the provided calldata it cannot be confirmed that the Linea-side listing is included in this proposal's execution.
“This publication proposes onboarding MetaMask's mUSD stablecoin to the Core instance of Aave v3 on Ethereum and Linea.”
Generated by Kvorum
04Actions
- Target
- 0x9ed5…c14f
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 570x57ab…2922 | For | 217.8K | 37.95% | — | 11mo ago |
| EZezr3al.eth0x8659…7d0e | For | 141.3K | 24.61% | — | 11mo ago |
| 8B0x8b37…2a22 | For | 74.3K | 12.94% | — | 11mo ago |
| B90xb933…8dd1 | For | 42.8K | 7.45% | — | 11mo ago |
| 2C0x2cc1…4df1 | For | 38.3K | 6.67% | — | 11mo ago |
| EC0xecc2…6ac9 | For | 25K | 4.36% | — | 11mo ago |
| 3D0x3ddc…05b0 | For | 20.1K | 3.50% | — | 11mo ago |
| 070x0703…961b | For | 10K | 1.74% | — | 11mo ago |
| AA0xaaab…2335 | For | 1.3K | 0.22% | — | 11mo ago |
| 920x923e…553e | For | 1.1K | 0.18% | — | 1y ago |
| A50xa54f…0f31 | For | 791.4 | 0.14% | — | 11mo ago |
| 480x48e5…6430 | For | 571.7 | 0.10% | — | 11mo ago |
| 4D0x4d26…7017 | For | 399.7 | 0.07% | — | 11mo ago |
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07Forum
No forum thread is confidently linked to this proposal.
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