Aave proposes unified isolation treatment for V3.7 E-Modes

What happened

An Aave DAO proposal seeks to enable the V3.7 isolated flag for 15 E-Modes and remove it from three others so that E-Mode-only debt cannot be backed by unrelated outside collateral.

What changed

A concrete cross-deployment collateral-policy change entered governance; no execution is established.

What did not change

The proposal states that the flag change itself would not alter liquidation thresholds, force repayment, or immediately change existing health factors. Current on-chain settings remain unchanged until execution.

Confirmed

• The proposal identifies 15 E-Modes for isolation and three for removal of isolation.
• Enabling isolation would assign zero LTV to collateral outside the E-Mode collateral set.
• The proposal reports approximately $777 million of debt across assessed categories and approximately $445,000 of E-Mode-exclusive debt backed by outside collateral at the assessment dates.
• Ethereum Core, Ethereum Prime, Arbitrum, Base, MegaETH, Gnosis, Polygon, and Mantle deployments are included in the specification.

Still open

• Voting outcome, payload review, and execution transactions.
• Live balances and affected accounts at execution time.
• Whether implementation dependencies alter the final category list.

What it means for an advisor

• Identify any positions relying on collateral outside the specified E-Mode sets before execution.
• Monitor the final payload and effective on-chain configuration rather than assuming the Snapshot text became operative.
• Review borrowing-capacity assumptions for affected Aave positions if the proposal executes.

Previous interpretation

The existing Aave v3 memo predates the proposed V3.7 E-Mode isolation normalization.