[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
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
- Publish an ARFC and get community and risk service providers feedback, and escalate to 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.
Off-Chain Vote
YAE
771.23K AAVE100%
NAY
2.26 AAVE0%
Abstain
0.08 AAVE0%
Discussion
Timeline
Jan 23, 2025Proposal created
Jan 24, 2025Proposal vote started
Jan 27, 2025Proposal vote ended
Feb 03, 2026Proposal updated