Aave approves EURC collateral for Ethereum Core

What happened

Aave governance approved proposal 331 to add Circle-issued EURC as borrowable collateral in the Ethereum Core instance.

What changed

The approved listing adds EURC issuer, redemption, euro-market, liquidity, and oracle dependencies with explicit caps and liquidation parameters.

What did not change

Execution occurred after June 30, so EURC was not yet an operative reserve within this backfill boundary. The vote does not make EURC Ketju-approved.

Confirmed

• The approved supply and borrow caps are 7 million and 6.5 million EURC.
• The approved LTV and liquidation threshold are 75% and 78%.
• The approved liquidation bonus is 5% and reserve factor is 10%.
• Pricing uses a capped EURC/USD structure incorporating Chainlink EURC/USD and EUR/USD inputs.

Still open

• Verification of the July execution and final reserve configuration.
• EURC liquidity and liquidation performance under euro-dollar volatility.
• Issuer, redemption, freeze, and banking dependency treatment in the Aave memo.
• Whether caps or oracle configuration change after launch.

What it means for an advisor

• Review the Aave memo's collateral and oracle perimeter before treating EURC exposure as acceptable.
• Verify executed reserve state, issuer controls, redemption mechanics, and stressed liquidity before considering the new market.