Aave approves v3.7 candidate scope ahead of final activation vote

What happened

Aave tokenholders approved the proposed v3.7 candidate scope, authorizing security procedures before a separate final on-chain AIP activation vote.

What changed

The approved candidate scope advanced changes to eMode isolation, removal of legacy isolation and siloed-borrowing configurations, removal of L2 sequencer-uptime gating, append-only reserve lists, and liquidation-calculation precision into security review and final-governance preparation.

What did not change

The Snapshot did not activate v3.7, upgrade any deployment, alter live reserve parameters, or immediately remove existing borrowing and liquidation protections. A final on-chain AIP remained required.

Confirmed

• The Snapshot closed on 2026-02-28 with approximately 584,549.94 voting power for and negligible voting power against or abstaining.
• The candidate adds an isolated eMode flag under which assets outside the category's collateral bitmap contribute no borrowing LTV.
• The candidate removes legacy Isolation Mode and Siloed Borrowing configuration features.
• The candidate removes L2 sequencer-uptime checks that can block borrowing and liquidation during an outage or grace period.
• The candidate removes the reserve-dropping flow, making reserve lists append-only, and proposes precision improvements to liquidation calculations.
• The approved scope could be reduced at the final AIP stage but not expanded except for production bug fixes.

Still open

• The final audited code, security-review findings, and executable AIP payload.
• Which Aave v3 deployments would receive the upgrade and on what schedule.
• Whether the final AIP would retain every approved candidate feature.
• The detailed liquidation-calculation changes, which the proposal said would be disclosed after internal development and security evaluation.
• The operational effect of removing sequencer-uptime gating during future L2 outages and recoveries.

What it means for an advisor

• Review the Aave v3 memo's assumptions about L2 outage protections, liquidation availability, eMode borrowing capacity, and governance-controlled collateral isolation.
• Track the final AIP and deployment-specific execution before treating any v3.7 mechanic as operative.
• Require deployment-level verification because approval of an upgrade candidate does not establish execution, improved safety, or advisor suitability.