[ARFC] Endorse the Asset Classification Framework (AAcA)

Title: [ARFC] Endorse the Asset Classification Framework (AAcA)

Author: LlamaRisk

Date: 2025-09-11

Summary

Following a community discussion, a formalization proposal by @bgdlabs, and an ARFC that passed the snapshot vote, we proposed this document to establish the Aave Asset Class Allowlist (AAcA). This framework is intended to be a collaborative tool maintained by Aave’s Service Providers to streamline and standardize the asset onboarding process. We’re opening this draft for the DAO’s feedback, as we have already started circulating it amongst SPs.

Motivation

The core principle of the AAcA is to group assets into logical categories based on their shared characteristics and collective risk profiles. This structured approach provides several key benefits:

• Clarity and Consistency: It creates a shared language for all stakeholders, from community members to risk service providers.

• Systematic Risk Assessment: By grouping similar assets, risks can be evaluated more systematically, allowing consistent risk parameters across a class.

• Deliberate Governance: It forces the DAO to make a conscious and deliberate decision before onboarding a new asset class, ensuring strategic alignment and risk awareness.

The framework is organized into six primary groups: Stablecoins, Wrapped Assets, Staking & Restaking Derivatives, Protocol Tokens, Tokenized Financial Instruments, and Uncategorized Assets. Each class within these groups is defined with a clear description, its current approval status, and examples of assets that fit the category.

• Approved classes are those that have been formalized based on currently or previously onboarded assets. Approved assets are still subject to analysis to determine if they are individually eligible for onboarding.

• Not Approved classes are those that have already been reviewed and have been explicitly not approved due to factors such as technical considerations and/or legal implications, among others.

• Not Analyzed classes are new categories introduced by recently proposed assets, suggested for future consideration, but not yet formally part of the Aave allowlist. These require assessment, community discussion and formal approval (via ARFC) before onboarding an asset of that class.

Specification

Aave Asset Class Framework

1. Stablecoins

This group includes all assets designed to maintain a stable value relative to a fiat currency, subdivided by their stabilization mechanism and yield properties.

| Class Name | Description | Status | Example Assets | |----|----|----|----| | Fiat-Pegged Stablecoins | | | | | Reserve Backed Stablecoin | Fiat-pegged assets backed by verifiable reserves, such as cash, cash equivalents, and other financial instruments. | Approved | AUSD, BUSD-T, cEUR, cUSD, EURC, EURe, EURS, FDUSD, frxUSD, m.USDC, m.USDT, openUSDT, PYUSD, RLUSD, USD1, USDbC, USDC, USDC.e, USD//C, USDT, USDT0, USDtb | | CDP Stablecoin | Fiat-pegged assets backed by a surplus of crypto assets, managed via a collateralized debt position (CDP) mechanism. | Approved | crvUSD, DAI, GHO, lisUSD, LUSD, USDS | | Actively Managed Stablecoins | | | | | Actively Managed Stablecoin | Assets whose peg relative to fiat or its underlying is maintained through different strategies (e.g., delta-neutral positions) or vault mechanisms. | Approved | USDe, USR, scBTC, scETH, scUSD | | Algorithmic Stablecoins | | | | | Algorithmic Stablecoin | Assets whose peg is maintained through algorithmic mechanisms. | Approved | | | Yield-Bearing Stablecoins | | | | | Diversified Yield Stablecoin | Stablecoins that generate yield for holders from diversified, Aave-vetted strategies applied to underlying reserve assets. | Approved | fxSAVE, syrupUSDC | | Concentrated Yield-Bearing Stablecoin | Stablecoins that generate yield for holders from their underlying reserve assets being deployed to narrowly defined strategies. | Approved | sUSDe, sDAI, sUSDS |

2. Wrapped Assets

This group includes tokens representing another underlying asset on a 1:1 basis, differentiated by their utility.

| Class Name | Description | Status | Example Assets | |----|----|----|----| | Native Wrappers | ERC-20 assets that represent a wrapped version of a network or protocol token, for purposes such as non-rebasing or interim receipts. | Approved | WAVAX, WBNB, WETH, WPOL, Ws, WXDAI, eUSDe, tUSDe | | Bridging Wrappers | ERC-20 assets that represent tokens bridged from a secondary chain, differentiated by their custom bridge infrastructure and non-standardized mechanisms. | Approved | BTC.b, BTCB, cbBTC, SolvBTC, tBTC, WBTC |

3. Staking & Restaking Derivatives

This group includes all liquid tokens derived from Proof-of-Stake (PoS) staking or restaking activities.

| Class Name | Description | Status | Example Assets | |----|----|----|----| | LST (Liquid Staking Token) | Liquid receipt tokens representing staked assets in a Proof-of-Stake (PoS) system. | Approved | cbETH, ETHX, LsETH, MaticX, osETH, rETH, sAVAX, weETH, wstETH, LBTC, stS, wstLINK | | LRT (Liquid Restaking Token) | Liquid receipt tokens representing assets deposited into a restaking protocol like EigenLayer. | Approved | eBTC, ezETH, pufETH, rsETH, rstETH, wrsETH, xSolvBTC | | Leveraged LST | Liquid staking tokens with leveraged yield optimization. | Approved | tETH, wOS |

4. Protocol Tokens

This group includes tokens integral to a protocol’s function, governance, or utility.

| Class Name | Description | Status | Example Assets | |----|----|----|----| | Governance | Tokens whose primary utility is directing a protocol’s governance through voting. | Approved | 1INCH, AAVE, ARB, BAL, CRV, ENS, KNC, LDO, MKR, OP, SCR, STG, UNI | | Protocol Utility Token | Assets that facilitate key functions within a protocol, such as staking, collateral, or operator rewards. | Approved | CELO, FXS, GNO, LINK, Metis, RPL, SNX, ZK |

5. Tokenized Financial Instruments

This group includes tokenized derivatives and representations of traditional financial assets, including Real-World Assets (RWAs).

| Class Name | Description | Status | Example Assets | |----|----|----|----| | Tokenized Derivatives | | | | | Principal Token (PT) | Non-yield-bearing tokens representing the principal component of a deposited asset from a yield-splitting protocol. | Approved | PT-eUSDE-29MAY2025 | | Tokenized Real-World Assets (RWAs) | | | | | Tokenized Commodity | Assets that are collateralized by physical commodities. | Approved | XAUt | | Tokenized Securities | A tokenized representation of traditional securities such as Exchange-Traded Funds. | Not Approved | bCSPX |

6. Uncategorized Assets

This group is for unique asset types that do not fit into the other categories.

| Class Name | Description | Status | Example Assets | |----|----|----|----| | #### Uncategorized | e.g. Memecoin; these are tokens based on internet memes that typically lack fundamental utility and derive value primarily from social consensus. | Not Approved or Not Analyzed |

Disclaimer

LlamaRisk is not presenting this ARFC on behalf of any third party and is not compensated for creating this ARFC.

Next Steps

1. If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.

2. If the Snapshot outcome is YAE, this proposal will be considered canon, and the guidelines will be adopted.

Copyright

Copyright and related rights waived via CC0.