Aave

[ARFC] Add EURC to BASE Aave V3

Author: ACI (Aave Chan Initiative)

Date: 2025-01-17

ARFC updated with Parameters 2025-01-23

Simple Summary:

The current ARFC proposes to add EURC on Base V3. EURC is Circle’s EUR-backed stablecoin, enhancing liquidity and expanding the platform’s appeal to European users. Original proposal was [TEMP CHECK] Add EURC to BASE Aave V3 but has been reformatted to be governance compliant. It has also passed TEMP CHECK Snapshot .

Motivation/Background:

EURC is a fully backed stablecoin pegged to the Euro, issued by Circle, the same entity behind USDC. It is a reliable and transparent Euro-denominated asset gaining adoption across DeFi protocols.

• Utility and Role: EURC facilitates Euro-based transactions in DeFi, allowing for a stable store of value and an efficient medium of exchange within the ecosystem.
• Backers: Circle is a trusted issuer with a track record of regulatory compliance, providing confidence in EURC’s stability.
• Performance: EURC has demonstrated consistent performance and adoption within the broader DeFi space such as Morpho (3M), Alien(4M) and Aerodome (3M).
• Euro Liquidity: EURC will offer Aave users access to Euro-denominated liquidity, appealing to the European market.
• Broader User Base: Listing EURC could attract new users from Europe, diversifying Aave’s stablecoin offerings.
• Increased Liquidity: The addition of EURC can enhance liquidity across Aave’s markets, improving lending, borrowing, and trading experiences.

Chain to be Deployed/Listed:

• Chain: Base
• LTV: Proposed initial Loan-to-Value (LTV) ratio is 75%, consistent with other stablecoins.
• **Parameters: Updated based on Risk Service Providers feedback 2025-01-23

Parameter	Value
Isolation Mode	No
Borrowable	Yes
Collateral Enabled	Yes
Supply Cap	4,200,000
Borrow Cap	3,800,000
Debt Ceiling	-
LTV	75.00%
LT	78.00%
Liquidation Bonus	5.00%
Liquidation Protocol Fee	10.00%
Variable Base	0%
Variable Slope1	12%
Variable Slope2	40%
Uoptimal	90%
Reserve Factor	10%
Stable Borrowing	Disabled
Flashloanable	Yes
Borrowable in Isolation	No
E-Mode Category	-

Useful Links

Project: Circle | USDC & Web3 Services for a new financial system

Documentation: EURC | A Euro-Backed Stablecoin

Base Contract: 0x60a3e35cc302bfa44cb288bc5a4f316fdb1adb42

Base Chainlink Oracle: EURC / USD Price Feed | Chainlink

[TEMP CHECK] Add EURC to BASE Aave V3 Instance

TEMP CHECK Snapshot

Disclaimer

This proposal is powered by Skywards. ACI is not affiliated with original author (shanenolan) and did not receive compensation for the creation of this proposal.

Next Steps

1. Publish an ARFC and get community and risk service providers feedback, and escalate to Snapshot stage.
2. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal

Copyright

Copyright and related rights waived via CC0.