[AAVE] Add MetaMask USD (mUSD) to Aave V3 Ethereum/Linea

Simple 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

The table below illustrates the configured risk parameters for mUSD on Ethereum.

| Parameter | Value | |

• | --: | | Isolation Mode | false | | Borrowable | ENABLED | | Collateral Enabled | false | | Supply Cap (mUSD) | 10,000,000 | | Borrow Cap (mUSD) | 8,000,000 | | Debt Ceiling | USD 0 | | LTV | 0 % | | LT | 0 % | | Liquidation Bonus | 0 % | | Liquidation Protocol Fee | 0 % | | Reserve Factor | 20 % | | Base Variable Borrow Rate | 0 % | | Variable Slope 1 | 6.5 % | | Variable Slope 2 | 60 % | | Uoptimal | 80 % | | Flashloanable | ENABLED | | Siloed Borrowing | DISABLED | | Borrowable in Isolation | DISABLED | | Oracle | 0xf22de319901C3b9BAEc7Fa14FdF013Ede40E7312 |

Oracle

| Parameter | Value | |

--
Oracle address
Underlying
last answer

The table below illustrates the configured risk parameters for mUSD on Linea.

| Parameter | Value | |

• | --: | | Isolation Mode | false | | Borrowable | ENABLED | | Collateral Enabled | false | | Supply Cap (mUSD) | 70,000,000 | | Borrow Cap (mUSD) | 60,000,000 | | Debt Ceiling | USD 0 | | LTV | 0 % | | LT | 0 % | | Liquidation Bonus | 0 % | | Liquidation Protocol Fee | 0 % | | Reserve Factor | 20 % | | Base Variable Borrow Rate | 0 % | | Variable Slope 1 | 6.5 % | | Variable Slope 2 | 60 % | | Uoptimal | 80 % | | Flashloanable | ENABLED | | Siloed Borrowing | DISABLED | | Borrowable in Isolation | DISABLED | | Oracle | 0xB8454f3b48395103F23c88B699d4F6A81fD1DCff |

Oracle

| Parameter | Value | |

--
Oracle address
Underlying
last answer

References

• Implementation: AaveV3Ethereum, AaveV3Linea
• Tests: AaveV3Ethereum, AaveV3Linea
• Snapshot
• Discussion

Copyright

Copyright and related rights waived via CC0.

https://app.aave.com/governance/v3/proposal/?proposalId=415