Aave approves XAUt collateral onboarding at the ARFC stage

What happened

Aave's ARFC vote approved advancing XAUt onboarding for the Ethereum Core instance.

What changed

The proposal advanced to final AIP preparation with XAUt as isolated, non-borrowable collateral, a 5,000-token supply cap, and a $3 million debt ceiling.

What did not change

ARFC approval did not add XAUt to the live market. Final AIP approval, execution, and live oracle configuration remained outstanding.

Confirmed

• The ARFC passed on August 25, 2025, with quorum and YAE as the winning option.
• Published parameters include 70% LTV, 75% liquidation threshold, and a 6% liquidation penalty.
• The proposal uses isolation mode and a $3 million debt ceiling.
• The stated next step was publication of an AIP.

Still open

• Final AIP result, execution date, and live configuration were not established.
• Weekend gold-price behavior, issuer controls, reserve evidence, redemption eligibility, and concentrated liquidity remain material diligence issues.

What it means for an advisor

• Monitor the final AIP and verify the oracle and isolation settings before treating the reserve as live.
• Review the Aave memo for tokenized-gold issuer, vault, blacklist, redemption, and weekend-pricing dependencies.
• Do not infer client suitability or approval from ARFC passage.