Aave opens final governance to deprecate legacy USDC on Gnosis

What happened

Aave Governance V3 proposal 399 opened final on-chain governance to deprecate the legacy USDC reserve on Aave V3 Gnosis.

What changed

The deprecation plan advanced to a formal AIP. If executed, the reserve would be frozen against new deposits, borrowing, and collateral enablement, while its reserve factor would rise from 40% to 80%.

What did not change

Creation of the proposal did not itself freeze the reserve. The payload would leave existing positions in place and would not deprecate the canonical USDC.e reserve.

Confirmed

• Aave Governance V3 proposal 399 was created on October 28, 2025.
• The proposal would freeze the legacy USDC reserve against new deposits, borrowing, and collateral enablement.
• The proposed reserve-factor change is from 40% to 80%.
• The proposal states that existing positions remain unaffected by the freeze.
• The stated objective is migration toward the Circle-supported USDC.e reserve.

Still open

• Any approval and target-chain execution occurring after the October 31 cutoff are outside this decision.
• The executed Gnosis reserve configuration and activation time.
• The amount of approved or client-held exposure remaining in legacy USDC.
• The practical exit liquidity and yield impact for positions that do not migrate.

What it means for an advisor

• Review any Aave V3 Gnosis legacy-USDC exposure and the memo's eligible-reserve assumptions before the proposed freeze becomes operative.
• Verify the final vote, execution, reserve state, and migration liquidity; the proposal does not itself justify treating USDC.e or the broader Gnosis market as approved.