A governance proposal to list Circle Wrapped Bitcoin, or cirBTC, on Aave’s V3 Core and V4 Core instances on Ethereum has advanced to Snapshot, where voting is expected to begin in less than 24 hours. The proposal covers activation of cirBTC with collateral functionality enabled on both markets.
The ARFC, or Aave Request for Final Comment, outlines a draft configuration for the asset across the two core deployments. It includes recommendations on whether the token should be borrowable, as well as initial risk and market parameters such as caps, collateral ratios, liquidation settings, reserve factors, interest rate curves, and price feed design.
What the proposal would do
If approved, the proposal would add cirBTC to Aave V3 Core and Aave V4 Core on Ethereum. The stated plan is to enable the asset for use as collateral rather than listing it only as a passive supply asset.
The assessment attached to the proposal sets out launch parameters for both versions of the protocol. Those parameters span supply and borrow caps, loan-to-value ratios, liquidation thresholds and bonuses, reserve factors, and the recommended pricing setup to support the listing.
How cirBTC is described
According to the proposal, cirBTC is an ERC-20 representation of native Bitcoin issued by Circle. It launched on Ethereum mainnet on June 8, 2026.
The document says each cirBTC token is backed 1:1 by Bitcoin held by a regulated Circle entity, with those reserves segregated from Circle’s corporate assets. Those points form part of the rationale for considering the asset for Aave’s core Ethereum markets.
Why Aave contributors support the listing
The motivation section argues that adding cirBTC would fit the DAO’s longer-term objective of broadening the set of collateral assets available to users. The proposal also frames the listing as a way to improve liquidity and open additional borrowing and lending activity inside the protocol.
At the same time, the draft configuration is presented as an attempt to balance risk and liquidity as the token becomes integrated into Aave. That is why the proposal goes beyond a simple listing request and includes a full parameter set for how the market could be launched.
Next step in governance
The proposal has now moved into the Snapshot stage, the next formal checkpoint in Aave governance. Voting is scheduled to start in less than 24 hours, based on the update accompanying the ARFC.
That vote will indicate whether token holders support onboarding cirBTC to both Aave V3 Core and Aave V4 Core under the proposed framework. The source material does not state a final outcome yet, only that the process has advanced to the voting phase.
Source: governance.aave.com