# Aave proposes WETH collateral for its Celo market

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

- URL: https://riadefi.com/on-chain/2025-05-28-aave-v3-celo-weth-onboarding-aip/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-05-28
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-06-03
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [Onboarding WETH to Aave V3 Celo Instance](https://app.aave.com/governance/v3/proposal/?proposalId=317) · Aave Governance · 2025-05-28


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.