# Aave proposes cirBTC collateral onboarding for v3 Core

> For Aave v3, the proposed configuration would enable borrowing and collateral use with a 250-unit supply cap, 20-unit borrow cap, 73% LTV, 78% liquidation threshold, 5% liquidation bonus, and Chainlink BTC/USD pricing.

- URL: https://riadefi.com/on-chain/2026-09-01-aave-v3-cirbtc-collateral-proposal/
- Type: Governance
- Stage: Proposed
- Evidence: confirmed
- Materiality: watch
- Event date: 2026-09-01
- Version: 1, published 2026-09-15 (first published 2026-09-15)
- Follow-up: 2026-09-04
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## What happened

An Aave DAO proposal seeks to add Circle Wrapped Bitcoin, or cirBTC, as borrowable collateral in the Ethereum Aave v3 Core instance and separately in Aave V4 Core.

## What changed

For Aave v3, the proposed configuration would enable borrowing and collateral use with a 250-unit supply cap, 20-unit borrow cap, 73% LTV, 78% liquidation threshold, 5% liquidation bonus, and Chainlink BTC/USD pricing.

## What did not change

cirBTC has not been listed through an executed AIP. The proposal calls for technical and risk assessments and later on-chain enforcement before the v3 change becomes operative.

## Confirmed

- The proposed Aave v3 market is Ethereum Core.
- The proposed v3 LTV is 73% and liquidation threshold is 78%.
- The proposed v3 supply cap is 250 cirBTC and borrow cap is 20 cirBTC.
- The proposal recommends Chainlink’s BTC/USD feed for pricing.
- The stated next steps include technical and risk assessments followed by an AIP for v3 enforcement.

## Still open

- The final technical and risk assessments, including custody, reserve, redemption, liquidity, and oracle-basis risks.
- Whether the proposal receives governance approval and executes on-chain.
- Whether final parameters differ from those in the candidate record.
- The deployed reserve and oracle configuration if execution occurs.

## What it means for an advisor

- Monitor the later AIP and execution record before treating cirBTC as Aave v3 collateral.
- If executed, review Circle custody and redemption controls, BTC/USD oracle basis risk, market liquidity, and the final cap configuration.
- The proposed 73% LTV is below Ketju’s greater-than-80% bridged or multi-wrap collateral trigger, so that specific kill criterion is not fired by the proposal.

## Sources

1. [[ARFC] Onboard cirBTC on Aave v3 Core and Aave V4 Core](https://snapshot.org/#/aavedao.eth/proposal/0xe7ce2a6c2c3f8ea303351a12ea0e991815b3944bd44af4fd2890cadc2ff19881) · Aave DAO on Snapshot · 2026-09-01


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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.