# Aave executes mUSD onboarding on Ethereum Core and Linea

> 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.

- URL: https://riadefi.com/on-chain/2025-08-26-aave-v3-ethereum-linea-musd-temp-check/
- Type: Economic change
- Stage: Executed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-11-30
- Version: 2, published 2026-08-22 (first published 2026-08-22)
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [Add MetaMask USD (mUSD) to Aave V3 Ethereum/Linea](https://app.aave.com/governance/v3/proposal/?proposalId=415) · Aave Governance V3 · 2025-11-26


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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.