[ARFC] Add XAUt to Aave v3 Core Instance

[ARFC] Add XAUt to Aave v3 Core Instance

Author: ACI

Date: 2025-06-19

ARFC updated 2025-07-04

Summary

The proposal aims to onboard Tether’s XAUt gold-denominated stablecoin, to the Aave v3 Core Instance, after successful [TEMP CHECK] Add XAUt to Aave V3 Core Instance and TEMP CHECK Snapshot.

Motivation

XAUt is a gold backed digital currency offered by Tether.

XAUt represents a unique opportunity to bring gold-backed assets into DeFi lending markets. Adding XAUt to Aave v3 would:

Diversify the protocol’s offerings with a historically stable store of value

Enable users to use gold-backed tokens as collateral or for lending, creating new DeFi use cases

Allow users a hedge against market volatility through exposure to physical gold

Attract traditional finance users who are familiar with gold as an asset class

The addition of XAUt aligns with Aave’s goal of expanding DeFi accessibility while maintaining strong risk management practices through the use of established, well-backed assets.

Specification

Ticker: XAUt

Contract address:

Risk Parameters will be provided by Risk Services Providers at the earliest possible and ARFC will be updated with that feedback.

ARFC updated 2025-07-04

Parameter

Value

Asset

XAUt

Isolation Mode

Yes

Borrowable

No

Collateral Enabled

Yes

Supply Cap

5,000

Borrow Cap

Debt Ceiling

$3,000,000

LTV

70%

LT

75%

Liquidation Penalty

6%

Liquidation Protocol Fee

10%

Variable Base

Variable Slope1

Variable Slope2

Uoptimal

Reserve Factor

Stable Borrowing

Disabled

Flashloanable

Yes

Siloed Borrowing

No

Borrowable in Isolation

No

E-Mode Category

N/A

Disclosure

ACI (Aave Chan Initiative) is not afiliated with Tether and has not received compensation for creating this proposal.

Next Steps

Now - Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.

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.