[TEMP CHECK] Add PEPE as a Supported Asset on AAVE

Summary

This is a proposal to add PEPE as a supported collateral asset on the AAVE lending platform.

Motivation

PEPE is a widely held, highly liquid asset in the crypto ecosystem. Its rapid growth in adoption, substantial trading volumes, and deep liquidity across major centralized and decentralized exchanges make it a natural candidate for integration into AAVE.

Adding PEPE could:

• Expand AAVE’s market reach and attract a new demographic of depositors and borrowers.
• Help fuel the growth of GHO, AAVE’s native stablecoin, by increasing the available collateral base for GHO minting.
• Generate additional liquidation income for the AAVE protocol. Given PEPE’s nature as a meme-driven asset, it is reasonable to expect elevated levels of borrowing, speculation, and resulting liquidations — all of which could accrue value to the AAVE DAO.
• Further diversify the asset options available to users while carefully managing risk through isolated market controls.

Specification

This proposal would achieve the following:

• Add PEPE as an isolated collateral asset within the AAVE ecosystem.
• Assign conservative risk parameters appropriate for a volatile asset (to be proposed by risk managers and community discussion).

Notes:

• Initial risk parameters (such as Loan-to-Value ratios and liquidation thresholds) would be recommended by our risk management partners as part of the next steps.

Disclaimer

I hold 98,465 AAVE tokens personally. I do not hold PEPE tokens personally. This proposal reflects my opinion that PEPE’s inclusion could be beneficial to AAVE’s growth and diversity, but users should independently evaluate any risks.

Next Steps

I am posting this [TEMP CHECK] to invite discussion and feedback from the community. If there is positive sentiment, I would encourage AAVE governance and risk teams to engage in further analysis, risk modeling, and formal onboarding steps for PEPE.

Copyright

No claims to copyright with this post.