Aave proposes WETH collateral for its Celo market

What happened

Aave proposal 317 opened to add Celo-native bridged WETH as borrowable collateral.

What changed

Execution would add a 500 WETH supply cap, 450 WETH borrow cap, 78% LTV, 80% liquidation threshold, and Chainlink ETH/USD pricing.

What did not change

The May record did not establish vote completion, execution, reserve activation, or Ketju approval of Aave Celo or Celo WETH.

Confirmed

• The reserve would be borrowable and collateral-enabled.
• The asset depends on Celo’s OP Stack Standard Bridge.
• The proposed liquidation bonus was 7.5%.

Still open

• The vote and execution after May 31.
• Final reserve and oracle state.
• Celo bridge, sequencer, concentration, liquidity, and exit-path risks.

What it means for an advisor

• Review Celo-specific dependencies separately from other Aave markets.
• Do not infer suitability from WETH familiarity or Aave governance.