# Aave opens final governance to deprecate legacy USDC on Gnosis

> 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%.

- URL: https://riadefi.com/on-chain/2025-10-28-aave-v3-gnosis-legacy-usdc-deprecation-aip/
- Type: Closure or deprecation
- Stage: Proposed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-10-28
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-10-31
- Advisor-relevant: yes
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [USDC (old) deprecation on Gnosis Chain Instance](https://app.aave.com/governance/v3/proposal/?proposalId=399) · Aave Governance V3 · 2025-10-28
2. [Aave Governance proposal 399 creation transaction](https://etherscan.io/tx/0x0ecea0c744b272e5663b041d2aca92a012b2d3c96bdfc23e53cc8a863c9a9d12) · Ethereum — Aave Governance V3 · 2025-10-28


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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.