# Aave proposal would add non-collateral USDG borrowing on Arbitrum

> 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.

- URL: https://riadefi.com/on-chain/2026-10-08-aave-v3-usdg-arbitrum-listing/
- Type: Governance
- Stage: Proposed
- Evidence: confirmed
- Materiality: watch
- Event date: 2026-10-08
- Version: 1, published 2026-10-08 (first published 2026-10-08)
- Follow-up: 2026-10-15
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [[Direct-to-AIP] Asset Listing - USDG Arbitrum](https://governance.aave.com/t/direct-to-aip-asset-listing-usdg-arbitrum/25811) · Aave governance — TokenLogic · 2026-10-08


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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.