Onboard USDC to Aave V3 X Layer

Simple Summary

This AIP lists native USDC on the Aave V3 X Layer instance as a borrowable asset and collateral, and enables USDC as a borrowable asset within the existing xBTC, xETH, xSOL, wOKB and PT-USDG stablecoin eModes.

Motivation

On 6 August 2026, Circle launched native USDC and the Cross-Chain Transfer Protocol (CCTP) on X Layer. Native USDC is issued by Circle, fully reserved, and redeemable 1:1 for US dollars. Onboarding it to Aave V3 X Layer expands the range of high-quality stablecoins available to users alongside USDT0, USDG and GHO, and increases the stablecoin borrowing liquidity available to the existing xBTC, xETH, xSOL, wOKB and PT-USDG eMode categories. The risk parameters below follow the revised LlamaRisk recommendation in the discussion thread.

Specification

The table below illustrates the configured risk parameters for USDC (0xB6CEceAB302E2E4948951eE7843FC24E92933061).

Parameter	USDC
Isolation Mode	No
Borrowable	Yes
Collateral Enabled	Yes
Supply Cap	35,000,000
Borrow Cap	32,000,000
Debt Ceiling	N/A
LTV	75%
Liquidation Threshold	78%
Liquidation Bonus	7.5%
Liquidation Protocol Fee	10%
Reserve Factor	10%
Base Variable Borrow Rate	0%
Variable Rate Slope 1	4%
Variable Rate Slope 2	40%
Optimal Utilization	90%
Flashloanable	Yes
Oracle	0x26AD1207EAA39F74FAC725599ce1c431C80eF6cC

Price Cap Adapter

USDC is priced through a PriceCapAdapterStable (Capped USDC / USD), following the same configuration as the existing USDT0 and USDG stable oracles on X Layer.

Parameter	Value
Adapter	0x26AD1207EAA39F74FAC725599ce1c431C80eF6cC
Underlying feed	0xB8a08c178D96C315FbFB5661ABD208477391BC40 (Chainlink USDC/USD)
Price cap	1.04 USD

eMode updates: USDC is enabled as a borrowable asset (not collateral) within the existing stablecoin eMode categories, alongside USDT0, USDG and GHO. The four crypto-collateral categories are also renamed to <asset>__Stablecoins to reflect the broader borrowable set; all risk parameters remain unchanged.

eMode	Collateral	USDC Borrowable
xBTC Stablecoins (1)	xBTC	Yes
xETH Stablecoins (2)	xETH	Yes
xSOL Stablecoins (3)	xSOL	Yes
wOKB Stablecoins (4)	wOKB	Yes
PT_USDG__Stablecoins (7)	PT-USDG-29OCT2026	Yes

References

• Implementation: AaveV3XLayer
• Tests: AaveV3XLayer
• Discussion

Copyright

Copyright and related rights waived via CC0.