# Aave approves XAUt collateral onboarding at the ARFC stage

> 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.

- URL: https://riadefi.com/on-chain/2025-08-25-aave-v3-ethereum-core-xaut-onboarding-arfc/
- Type: Governance
- Stage: Approved, not executed
- Evidence: confirmed
- Materiality: watch
- Event date: 2025-08-25
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-09-01
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [[ARFC] Add XAUt to Aave v3 Core Instance](https://governance.aave.com/t/arfc-add-xaut-to-aave-v3-core-instance/22385) · Aave DAO · 2025-06-19


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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.