[TEMP CHECK] Onboard USSD to Aave V3 Sonic Instance

Author: Aave Labs Date: 2026-04-10

Simple Summary

The current proposal is set to onboard Sonic stablecoin USSD to Aave V3 Sonic Instance.

USSD will enable users to supply USSD for yield and use it as a stable borrowing mechanism.

Motivation

USSD is Sonic's network-integrated USD stablecoin designed to become the key source of stable liquidity across the Sonic ecosystem, built on Frax's frxUSD infrastructure.

USSD is backed 1:1 by high-quality USD assets and can be redeemed back to USDC on any CCTP-supported chains, providing a familiar and reliable on and off-ramp. Using Layer Zero interoperability, USSD enables users to mint USSD from over 10+ chains directly to Sonic.

Reserves consist of short-duration, tokenized U.S. Treasury products, including BlackRock's BUIDL, Superstate's USTB, and WisdomTree's WTGXX, custodied with regulated providers to support redemption confidence and regulatory alignment.

Technical Details

• Minting: USSD is minted through non-custodial smart contracts at a 1:1 ratio with no minting fees.
• Peg: 1:1 USD
• Reserve Composition: Tokenized short-duration U.S. Treasury instruments:
  • BlackRock USD Institutional Digital Liquidity Fund (BUIDL)
  • Superstate Short Duration U.S. Government Securities Fund (USTB)
  • WisdomTree Government Money Market Digital Fund (WTGXX)
• Collateral Types: USDC, USDT, PYUSD, USDB, BUIDL, USTB, WTGXX, and others at 1:1 ratio
• Custodians: Regulated institutional custodians

Supported Mint Assets

Stablecoins

• USDC
• USDT
• PYUSD
• USDB

Tokenized Treasuries

• BUIDL
• USTB
• WTGXX
• Other approved USD / Treasury representations

Contract Address (Sonic):
https://sonicscan.org/token/0x000000000eccff26b795f73fb0a70d48da657fef

Specification

Risk Parameters will be provided by Risk Service Providers and proposal will be updated accordingly at ARFC stage.

Useful Links

• https://www.soniclabs.com/ussd
• https://blog.soniclabs.com/ussd-sonics-native-permissionless-usd-stablecoin-built-with-frax/
• https://docs.soniclabs.com/sonic/ussd

Next Steps

• Publication of TEMP CHECK to gather community & service providers feedback, and escalate to TEMP CHECK Snapshot.
• Publication of a standard ARFC, if TEMP CHECK Snapshot passed, to continue collecting 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.

Disclaimer

The current proposal is raised on behalf of a third party. Aave Labs is not compensated for raising this proposal.

Copyright

Copyright and related rights waived via CC0.