# Aave approves EURC collateral for Ethereum Core

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

- URL: https://riadefi.com/on-chain/2025-06-30-aave-v3-ethereum-core-eurc-onboarding-aip/
- Type: Economic change
- Stage: Approved, not executed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-06-30
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-07-02
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [Add EURC to Aave V3 Core Instance](https://vote.onaave.com/proposal/?ipfsHash=0xf93eb58ea5cf5aaf82c5e3c799ac717bed7c1879c6a4ae1525087df7a873e5b6&proposalId=331) · Aave Governance · 2025-06-26


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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.