Aave opens final governance for cbBTC Stablecoin E-Mode on Base

What happened

Aave Governance V3 proposal 400 opened final on-chain governance for a cbBTC Stablecoin E-Mode on the Aave V3 Base market.

What changed

The plan advanced to a formal AIP. If executed, cbBTC could collateralize USDC and GHO debt under an 80% maximum LTV, 83% liquidation threshold, and 4% liquidation bonus within the new E-Mode.

What did not change

Creation of the proposal did not itself activate the E-Mode. The proposal states that cbBTC's base reserve settings would remain unchanged, and no October execution was established by the reviewed creation event.

Confirmed

• Aave Governance V3 proposal 400 was created on October 29, 2025.
• The proposed E-Mode uses cbBTC as collateral and makes USDC and GHO borrowable within the category.
• The proposed maximum LTV is 80% and the liquidation threshold is 83%.
• The proposed liquidation bonus is 4%.
• The proposal does not alter cbBTC's base reserve settings.

Still open

• Any approval and target-chain execution occurring after the October 31 cutoff are outside this decision.
• The executed Base configuration and activation time.
• The effect on borrower leverage, liquidation volumes, oracle dependence, and realized bad debt under market stress.
• Whether any approved or client-held position uses the affected Base cbBTC configuration.

What it means for an advisor

• Review the Aave V3 Base memo's cbBTC liquidation-buffer, oracle, custody, and stablecoin-debt assumptions before treating the proposed E-Mode as acceptable.
• Verify the final vote, executed configuration, and affected accounts before recognizing the higher collateral efficiency as operative.