# Aave advances stcUSD onboarding on MegaETH

> 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.

- URL: https://riadefi.com/on-chain/2026-06-23-aave-v3-megaeth-stcusd-onboarding-arfc-approval/
- Type: Economic change
- Stage: Approved, not executed
- Evidence: confirmed
- Materiality: watch
- Event date: 2026-06-23
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2026-08-26
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [[ARFC] Onboard stcUSD to Aave V3 MegaETH](https://snapshot.org/#/aavedao.eth/proposal/0x84ccc14e104b18a74ef47375ccd59f7f7aeeb61716dbb2c362ea7a538da3e08f) · Aave DAO via Snapshot · 2026-06-19


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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.