Aave advances stcUSD onboarding on MegaETH

What happened

Aave DAO's Snapshot vote approved advancing stcUSD onboarding to the Aave v3 MegaETH market.

What changed

The approved ARFC specifies a 10 million supply cap and an isolated stablecoin E-Mode with 88% LTV, 90% liquidation threshold, and a 4% liquidation bonus.

What did not change

The ARFC did not itself list stcUSD on-chain; the base reserve configuration states collateral disabled, while collateral use is confined to the proposed E-Mode configuration.

Confirmed

• The vote closed on June 23 with overwhelming support.
• stcUSD is described as the staked, yield-bearing component of Cap Protocol's cUSD.
• The proposed reserve is not borrowable and has no borrow cap.
• The proposal states that a final AIP is required after ARFC approval.

Still open

• The record does not establish final AIP execution or that the reserve became live.
• The final deployed risk parameters and oracle configuration remain unconfirmed.

What it means for an advisor

• Monitor the final AIP because the proposed E-Mode introduces an 88% LTV for a yield-bearing stablecoin wrapper.
• Assess cUSD backing, stcUSD staking mechanics, oracle design, and wrap depth before recognizing the listing as acceptable collateral.
• Do not apply the proposed configuration to existing Aave markets before on-chain execution is verified.