A new Aave governance proposal asks the DAO to add USAT, the Tether America USD stablecoin, to both the Aave V3 Core Instance and the Aave V4 Core Hub on Ethereum.

The proposal says the final asset setup has not yet been fixed. Risk parameters and the eventual configuration would be determined later by Aave’s Risk Service Providers, with the ARFC updated accordingly.

What the proposal would do

The request is focused on a dual listing: USAT would be onboarded to Aave V3’s Core market on Ethereum and also to the Aave V4 Core Hub on the same network. The proposal identifies the token contract as 0x07041776f5007ACa2A54844F50503a18A72A8b68.

By targeting both versions, the proposal aims to make the asset available to existing Aave V3 users on Ethereum while also giving the DAO and service providers room to apply a separate configuration for the V4 Core Hub. The text does not set those parameters yet, instead leaving that work to the protocol’s risk teams.

How USAT is described in the filing

According to the proposal, USAT, or Tether America USD, is a dollar stablecoin issued by Anchorage Digital Bank, N.A. The filing describes Anchorage as a federally chartered national trust bank supervised by the Office of the Comptroller of the Currency.

The proposal also states that USAT is subject to the GENIUS Act and is redeemable 1:1 for U.S. dollars. Those points are presented as part of the rationale for considering the asset for Aave’s core Ethereum deployments.

Rationale presented to the DAO

The filing argues that listing USAT would expand the set of regulated dollar-denominated assets available on Aave. In particular, it frames the token as a bank-issued stablecoin operating under U.S. federal supervision.

A second argument is demand from institutional users. The proposal says some market participants are looking for a stablecoin issued within the United States’ federal stablecoin framework, and that adding USAT could help Aave serve that segment.

The proposal further suggests that listing the token on both V3 and V4 would meet near-term access needs on Ethereum while preserving flexibility for a V4-specific market configuration.

What happens next

At this stage, the document is an ARFC, or Aave Request for Comment, rather than a final implementation step. That means the listing is still under governance consideration and the exact borrow, collateral and other risk settings are not yet confirmed.

The next confirmed step in the process is for Aave’s Risk Service Providers to define the risk parameters and final asset configuration. The proposal says the ARFC will be updated once those details are available.

Source: governance.aave.com