Aave proposal would add non-collateral USDG borrowing on Arbitrum

What happened

TokenLogic proposed onboarding USDG to Aave V3 Arbitrum as a supplyable and borrowable stablecoin.

What changed

The research perimeter now includes a concrete proposal for a USDG reserve with a 30 million supply cap, 27.6 million borrow cap, and Chainlink-based capped pricing.

What did not change

The record does not establish a live listing. Collateral use is proposed to remain disabled, with zero LTV and liquidation threshold.

Confirmed

• The proposal specifies a 30,000,000 USDG supply cap and 27,600,000 USDG borrow cap.
• It proposes disabled collateral use and a 10% reserve factor.
• It proposes a Chainlink USDG/USD feed with a capped adapter at 1.04.
• Final parameters and oracle configuration remain subject to risk and technical service-provider review.
• The stated next step is escalation to AIP voting after feedback.

Still open

• Final risk recommendations, adapter address, governance approval, and deployment are not established.
• The proposal describes an Ethereum-to-Arbitrum LayerZero OFT dependency; its precise authority and deployment mapping require review before treating the reserve as available.

What it means for an advisor

• Add the pending reserve to the Aave diligence file and monitor its final caps and oracle configuration.
• Before recognizing the reserve as available, map the USDG cross-chain authority and confirm final on-chain parameters.
• The proposed zero LTV does not fire the memo's bridged-collateral-above-80%-LTV trigger.