Aave executes mUSD onboarding on Ethereum Core and Linea

What happened

Aave Governance V3 executed proposal 415, adding MetaMask USD reserves to the Ethereum Core and Linea instances.

What changed

mUSD became supplyable, borrowable, and flash-loanable on both markets. Ethereum received 10 million and 8 million supply and borrow caps; Linea received 70 million and 60 million caps.

What did not change

mUSD was not enabled as collateral on either instance. Execution did not make mUSD a Ketju-approved asset or establish the safety of its issuer, reserves, oracle, redemption, or cross-chain dependencies.

Confirmed

• Proposal 415 executed on November 30, 2025.
• The Ethereum mUSD reserve has a 10 million supply cap and 8 million borrow cap.
• The Linea mUSD reserve has a 70 million supply cap and 60 million borrow cap.
• Both reserves have zero LTV and are not collateral-enabled.
• Both configurations use capped mUSD/USD oracle paths.

Still open

• Live utilization, liquidity, redemption performance, holder concentration, and oracle behavior.
• The operative issuer, reserve-custody, freeze, upgrade, and M0 cross-chain control map.
• Whether any approved or client-held Aave position interacts with either mUSD reserve.

What it means for an advisor

• Supersede the preliminary Aave memo interpretation that mUSD remained only a proposed reserve.
• Review the Aave dependency map for Bridge, M0, reserve custody, redemption, oracle, and Linea-specific risks.
• Keep mUSD suitability separate from the Aave protocol verdict; execution does not approve mUSD for clients.

Previous interpretation

The August 26 TEMP CHECK placed mUSD onboarding on the research perimeter, but contracts, oracles, caps, collateral status, and execution remained unresolved.