Aave proposes adding FBTC collateral to Ethereum Core

What happened

Aave proposal 318 opened to list FBTC as borrowable collateral and create an FBTC-to-WBTC E-mode.

What changed

Execution would add FBTC bridge, custody, redemption, liquidity, and oracle dependencies with 200/100 FBTC supply and borrow caps.

What did not change

No May evidence established vote completion or execution, and FBTC did not become Ketju-approved.

Confirmed

• Proposed LTV and liquidation threshold were 73% and 78%.
• The proposal specified Chainlink SVR BTC/USD pricing.
• The proposed E-mode used 84% LTV and 86% liquidation threshold.

Still open

• The vote and execution after May 31.
• Final oracle, cap, and E-mode state.
• FBTC custody, redemption, concentration, and stressed-liquidity risks.

What it means for an advisor

• Review FBTC’s custody and cross-chain trust model.
• Require executed-state and liquidity verification before considering exposure.