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title: [ARFC] Add MetaMask USD (mUSD) to Aave v3 Core Instance on Ethereum and Linea author: @TokenLogic created: 2025-09-09

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Summary

This publication proposes onboarding MetaMask's mUSD stablecoin to the Core instance of Aave v3 on Ethereum and Linea.

Motivation

MetaMask USD (mUSD) is a dollar-denominated stablecoin natively integrated into MetaMask. mUSD is issued by Bridge, a Stripe company, and stablecoin issuance and orchestration platform. On-chain MetaMask USD is powered by M0, a decentralized stablecoin infrastructure and liquidity platform. mUSD will be deeply integrated into MetaMask’s wallet, offering users a seamless, dollar-denominated stablecoin experience for holding, spending, and transacting in web3.

Key properties

• Wallet-native: deeply integrated across MetaMask UX and supported dapps.
• Multi-chain at launch: Ethereum Mainnet and Linea and will play a foundational role in the growing Linea DeFi ecosystem and network expansion.
• Interoperable: designed for cross-chain liquidity via the M0 network.
• Transparency-first: reserve management by Bridge with real-time reporting.

mUSD is fully backed 1:1 by high-quality, liquid dollar-equivalent assets. Bridge provides real-time transparency reporting, with independent attestations to follow. The launch aligns with new U.S. regulatory clarity under the GENIUS Act.

Payments & MetaMask Card

mUSD supports on-ramps, swaps, bridging, and will soon be spendable via the MetaMask Card at millions of Mastercard merchants.

Specification

Ticker: mUSD

Contract address Ethereum: 0xacA92E438df0B2401fF60dA7E4337B687a2435DA Contract address Linea: 0xacA92E438df0B2401fF60dA7E4337B687a2435DA

Chainlink oracle: soon

Audits: https://github.com/m0-foundation/mUSD/tree/main/audits

Project: https://metamask.io

Docs: https://github.com/m0-foundation/mUSD/blob/main/README.md

Twitter: https://x.com/MetaMask

| Parameters | Value | Value | | --- | :---: | :---: | | Network | Ethereum | Linea | |Isolation mode| No | No | |Borrowable| Yes | Yes | |Collateral enabled| No | No | |Supply Cap | 10,000,000 | 70,000,000 |Borrow Cap | 8,000,000 | 60,000,000 | |Debt Ceiling| - | - | |LTV| - | - | |LT| - | - | |Liquidation Penalty |-|-| |Liquidation Protocol Fee|-|-| |Variable Base| 0% | 0% | |Variable Slope1| 6.50% | 6.50%
|Variable Slope2| 60% | 60% | |Uoptimal| 80% | 80% | |Reserve Factor| 20%| 20%| |Stable Borrowing| Disabled | Disabled | |Flashloanable | Yes | Yes | |Siloed Borrowing| No | No | |Borrowed in Isolation| No | No |

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

DEX liquidity is to be provided in the coming days to aid Risk Service providers in providing their analysis.

Disclosure

TokenLogic does not receive any payment for this proposal.

Next Steps

1. Gather feedback from the community.
2. If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.
3. If Snapshot outcome is YAE, an AIP will implement proposal.

Copyright

Copyright and related rights waived via CC0.