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

> 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.

- URL: https://riadefi.com/on-chain/2025-10-29-aave-v3-base-cbbtc-stablecoin-emode-aip/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-10-29
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-10-31
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [Addition of cbBTC/Stablecoin E-Mode to Aave V3 Base Instance](https://app.aave.com/governance/v3/proposal/?proposalId=400) · Aave Governance V3 · 2025-10-29
2. [Aave Governance proposal 400 creation transaction](https://etherscan.io/tx/0xf901bb63161d81ecf9ad72f077b5b0f565178aa640e2800fd33f0c15d03c1936) · Ethereum — Aave Governance V3 · 2025-10-29


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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.