Onboard stcUSD to Aave V3 MegaEth
01Summary
Onboard stcUSD (Cap Protocol's yield-bearing staking token) to Aave V3 MegaETH as collateral exclusively within an isolated E-Mode, enabling users to borrow stablecoins (USDT0 and USDm) against stcUSD while maintaining yield exposure. stcUSD cannot be borrowed or used as collateral outside this E-Mode.
- Type
- protocol addition
Key changes
- Add stcUSD as collateral asset to Aave V3 MegaETH instance with 10,000,000 supply cap(high)
- Configure isolated stcUSD__Stablecoins E-Mode with 88% max LTV and 90% liquidation threshold for stcUSD collateral paired with USDT0 and USDm borrowing(high)
- Implement CAPO oracle adapter combining Chainlink stcUSD/cUSD exchange rate with capped USDC/USD price feed, with 10.5% yearly ratio growth cap and 14-day snapshot delay(high)
- stcUSD is not borrowable, not flashloanable, and cannot be used as collateral outside the dedicated E-Mode(medium)
Notable concerns
- Asset depends on Cap Protocol's operational stability and staking mechanism; protocol risk extends to underlying cUSD and collateral
- Oracle configuration includes 10.5% yearly ratio growth cap which could impact pricing during significant market events
- Borrow cap set to 1 indicates highly restricted borrowing outside E-Mode, requiring careful monitoring
Generated by Kvorum
02Description
Simple Summary
This proposal onboards stcUSD to the Aave V3 MegaETH instance. stcUSD is the yield-bearing token of Cap Protocol, obtained by staking cUSD. It was deferred from the initial MegaETH launch pending technical and risk reviews, which have now been completed by LlamaRisk.
stcUSD is listed as collateral exclusively within a dedicated, isolated stcUSD__Stablecoins E-Mode, allowing users to borrow stablecoins (USDT0 and USDm) against stcUSD while retaining its yield exposure. Outside of this E-Mode the asset is neither borrowable nor usable as collateral.
Motivation
stcUSD is the yield-bearing component of Cap Protocol: users mint cUSD and stake it to receive stcUSD, accruing yield generated by the underlying collateral and protocol mechanisms. As of June 1, 2026, Cap reports $399.42M in TVL, 113.17M cUSD in circulation, approximately 81.69% of cUSD staked into stcUSD, and a 5.26% 7-day APY.
Listing stcUSD allows users to retain stcUSD yield exposure while borrowing stablecoins from Aave for looping strategies. This creates incremental borrowing demand and attracts stablecoin suppliers to the MegaETH instance, improving market completeness early in the deployment's lifecycle.
Specification
This proposal onboards stcUSD to the Aave V3 MegaETH instance with the risk parameters recommended by LlamaRisk. stcUSD is enabled as collateral only within the isolated stcUSD__Stablecoins E-Mode (base LTV and Liquidation Threshold are 0), and is not borrowable or flashloanable in the standard market.
Token addresses:
- stcUSD:
0x88887bE419578051FF9F4eb6C858A951921D8888 - cUSD (reference asset):
0xcCcc62962d17b8914c62D74FfB843d73B2a3cccC
Asset Configuration
| Parameter | stcUSD |
|---|---|
| Isolation Mode | No |
| Borrowable | No |
| Collateral Enabled | No (E-Mode only) |
| Supply Cap | 10,000,000 |
| Borrow Cap | 1 |
| Debt Ceiling | N/A |
| LTV | 0% |
| Liquidation Threshold | 0% |
| Liquidation Bonus | 0% |
| Liquidation Protocol Fee | 10% |
| Reserve Factor | 0% |
| Base Variable Borrow Rate | 0% |
| Variable Rate Slope 1 | 10% |
| Variable Rate Slope 2 | 300% |
| Optimal Utilization | 45% |
| Flashloanable | No |
stcUSD__Stablecoins E-Mode
The stcUSD__Stablecoins E-Mode is configured as isolated, with stcUSD as the sole collateral and USDT0 and USDm as the borrowable assets.
| Parameter | stcUSD | USDT0 | USDm |
|---|---|---|---|
| Collateral | Yes | No | No |
| Borrowable | No | Yes | Yes |
| Max LTV | 88% | — | — |
| Liquidation Threshold | 90% | — | — |
| Liquidation Bonus | 4% | — | — |
Oracle
stcUSD is priced through a CAPO (Correlated-Asset Price Oracle) adapter that combines the Chainlink stcUSD/cUSD exchange rate feed with a base capped USDC/USD price feed. The underlying feeds use a 0.5% deviation threshold and a 24-hour heartbeat.
| Parameter | Value |
|---|---|
| Contract (CAPO adapter) | 0xBBC579Ee0A3fD6E9240965C5f57b7e5b3e3809A8 |
MINIMUM_SNAPSHOT_DELAY | 14 days |
maxYearlyRatioGrowthPercent | 10.5% |
References
- Implementation: AaveV3MegaEth
- Tests: AaveV3MegaEth
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
A calldata-vs-description analysis is not generated yet. Review the decoded actions →
04Actions
This proposal carries no on-chain actions.
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 330x3320…3bb7 | For | 107.2K | 30.55% | — | 4mo ago |
| 2C0x2cc1…4df1 | For | 88.2K | 25.11% | — | 4mo ago |
| 8B0x8b37…2a22 | For | 75.9K | 21.63% | — | 4mo ago |
| B90xb933…8dd1 | For | 54K | 15.38% | — | 4mo ago |
| 360x3676…574d | For | 25K | 7.12% | — | 4mo ago |
| 4D0x4d26…7017 | For | 626.7 | 0.18% | — | 4mo ago |
| 3D0x3ddc…05b0 | For | 102.4 | 0.03% | — | 4mo ago |
| BC0xbcf0…46a5 | Against | 6 | 0.00% | — | 4mo ago |
| 2F0x2f2f…f78a | For | 5.2 | 0.00% | — | 4mo ago |
| 080x089a…2dfd | For | 5 | 0.00% | — | 4mo ago |
| 5D0x5de5…e69c | For | 2.5 | 0.00% | — | 4mo ago |
| 160x168f…7400 | Against | 0.1 | 0.00% | — | 4mo ago |
| 530x53da…c14b | For | 0 | 0.00% | — | 4mo ago |
| A90xa97c…ccc8 | For | 0 | 0.00% | — | 4mo ago |
| CD0xcd0b…47df | For | 0 | 0.00% | — | 4mo ago |
07Forum
No forum thread is confidently linked to this proposal.
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