[AAVE] Add EURC to BASE Aave V3

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

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.

Specification

The table below illustrates the configured risk parameters for EURC

| Parameter | Value | |

• | --: | | Isolation Mode | false | | Borrowable | ENABLED | | Collateral Enabled | true | | Supply Cap (EURC) | 4,200,000 | | Borrow Cap (EURC) | 3,800,000 | | Debt Ceiling | USD 0 | | LTV | 75 % | | LT | 78 % | | Liquidation Bonus | 5 % | | Liquidation Protocol Fee | 10 % | | Reserve Factor | 10 % | | Base Variable Borrow Rate | 0 % | | Variable Slope 1 | 8.5 % | | Variable Slope 2 | 40 % | | Uoptimal | 90 % | | Flashloanable | ENABLED | | Siloed Borrowing | DISABLED | | Borrowable in Isolation | DISABLED | | Oracle | 0x215f25556f91b30afcf0a12da51c9d4374b22570 |

Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for EURC and the corresponding aToken.

References

• Implementation: AaveV3Base
• Tests: AaveV3Base
• Snapshot
• Discussion

Copyright

Copyright and related rights waived via CC0.

https://app.aave.com/governance/v3/proposal/?proposalId=265