# Aave opens final governance for tBTC collateral on Arbitrum

> If executed, tBTC would become non-borrowable collateral with a 50 tBTC supply cap, 73% LTV, 78% liquidation threshold, and Chainlink BTC/USD pricing.

- URL: https://riadefi.com/on-chain/2025-08-20-aave-v3-arbitrum-tbtc-onboarding-aip/
- Type: Governance
- Stage: Proposed
- Evidence: confirmed
- Materiality: watch
- Event date: 2025-08-20
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-08-27
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## What happened

Aave opened an on-chain proposal to add tBTC as collateral on its Arbitrum v3 instance.

## What changed

If executed, tBTC would become non-borrowable collateral with a 50 tBTC supply cap, 73% LTV, 78% liquidation threshold, and Chainlink BTC/USD pricing.

## What did not change

The proposal record does not by itself confirm execution or establish that tBTC was available as collateral on August 20.

## Confirmed

- The proposed Arbitrum tBTC contract is 0x6c84a8f1c29108f47a79964b5fe888d4f4d0de40.
- The proposed supply cap is 50 tBTC and the borrow cap is 25, while borrowing is described as disabled in the operative configuration.
- The proposed LTV and liquidation threshold are 73% and 78%.
- The candidate links Aave Governance proposal 360.

## Still open

- Final vote result and execution timing require operative on-chain confirmation.
- The final live reserve configuration and oracle address must be reconciled after execution.

## What it means for an advisor

- Monitor final execution before treating tBTC on Arbitrum as an available Aave collateral market.
- Review wrapped-Bitcoin minting, bridge, oracle, liquidity, and liquidation dependencies introduced by the listing.
- Confirm that the final borrow-enabled flag and borrow cap are internally consistent.

## Sources

1. [[ARFC] Onboard tBTC to Aave v3 on Arbitrum](https://governance.aave.com/t/arfc-onboard-tbtc-to-aave-v3-on-arbitrum/19756) · Aave DAO · 2024-11-11
2. [Proposal 360](https://app.aave.com/governance/v3/proposal/?proposalId=360) · Aave Governance · 2025-08-20


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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.