# Aave proposes adding FBTC collateral to Ethereum Core

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

- URL: https://riadefi.com/on-chain/2025-05-28-aave-v3-ethereum-core-fbtc-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 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.

## Sources

1. [Add FBTC to Aave v3 Main Market on Ethereum](https://app.aave.com/governance/v3/proposal/?proposalId=318) · 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.