[Temp Check] Deploy Aave V4 on Arc

Title: Deploy Aave v4 on Arc

Author: Aave Labs Ltd.

Simple Summary

This Temp Check seeks community feedback on deploying Aave V4 on Arc alongside supporting an initial set of high-quality assets.

Arc is an institutional-grade public layer-1 blockchain, built by Circle and designed to be the Economic Operating System (OS) of the internet for digital dollar liquidity and real-world assets. Launching Aave V4 on Arc would position Aave as foundational financial infrastructure on a network optimized for capital-efficient liquidity flows from regulated institutions.

This Temp Check is intended to gauge community sentiment on:

• Deploying Aave V4 on Arc at or near mainnet launch
• Supporting the proposed initial asset scope
• Advancing the proposal to the ARFC stage

If there is sufficient support, the proposal will proceed to ARFC with full technical specifications, risk framework, incentive design, and parameter recommendations from relevant Aave DAO service providers.

Motivation

Arc is preparing for mainnet launch. The permissionless blockchain is purpose built for stablecoins, tokenized real world assets, and global onchain finance. Arc, built by Circle, is focused on bringing DeFi innovation into traditional financial workflows to unlock new capital formation and expand the market for onchain credit and liquidity. As the Economic OS for the internet, Arc is designed to coordinate onchain credit and financial primitives with treasury backed instruments, tokenized assets, and compliance aligned infrastructure in a single onchain capital environment.

Deploying Aave V4 on Arc would:

• Establish Aave as one of the primary lending protocols at network launch
• Grow Aave’s available markets for Circle-issued assets
• Expand Aave’s presence into new institutional and fintech liquidity flows
• Drive incremental TVL and revenue opportunities for the Aave ecosystem

Arc’s design concentrates regulated stablecoin liquidity and tokenized products into a programmable settlement layer. Integrating Aave into the Economic OS positions it to serve as one of the primary lending protocols for capital forming on the network.

A core objective of this deployment is to support meaningful stablecoin and tokenized asset liquidity at scale, subject to risk provider recommendations.

Specification

If there is sufficient support, the proposal will proceed to ARFC with full technical specifications, risk framework, incentive design/liquidity commitments, and parameter recommendations from relevant Aave DAO service providers.

Full technical specifications, risk framework, incentive design, and parameter recommendations from relevant Aave DAO service providers will be presented during ARFC.

Asset Scope

The initial asset set proposed includes:

• USDC
• EURC
• cirBTC

The intent is to consolidate assets into a single formal governance process where possible to reduce fragmentation and minimize proposal overhead.

Final asset inclusion and parameters will be subject to Aave DAO service provider feedback.

Revenue Support

In connection with the deployment, Aave DAO is expected to receive a minimum of $2m per year in protocol revenue from the Aave V4 deployment on Arc, with any shortfalls covered by certain Arc ecosystem participants for the first five years following deployment. This structure provides protection for Aave DAO during the bootstrap phase.

Useful Links

• Website: https://www.arc.network/
• Litepaper: https://www.arc.network/litepaper

Disclaimer

Aave Labs is presenting this proposal as a service provider to the Aave DAO under the budget approved by the Aave Will Win framework. Aave Labs is not directly affiliated with Arc and did not receive compensation for this proposal.

Next Steps

If this Temp Check indicates sufficient community support, the proposal will proceed as follows:

• Phase 1: Snapshot vote on Temp Check
• Phase 2: ARFC (Aave Request for Final Comments)
• Phase 3: AIP (Onchain Vote)

Following Snapshot approval, the final AIP payload will be submitted on Ethereum mainnet for onchain execution.

Deployment preparation would begin after ARFC passage, with activation following successful AIP approval.

Requested Feedback

The community is invited to provide feedback on:

• Deploying Aave V4 on Arc
• Supporting the proposed initial asset scope
• Advancing this proposal to the ARFC stage

If there is sufficient positive sentiment, the authors will proceed with a detailed ARFC submission.

Copyright

Copyright and related rights waived via CC0.