A governance proposal for Aave seeks to add Ethena’s USDe to the Aave V3 deployment on X Layer, expanding the set of stablecoin assets available on that market. The proposal would make USDe available for supplying, borrowing and use as collateral, while also extending its role inside several existing efficiency mode categories on the network.

The filing describes USDe as Ethena’s synthetic dollar and says the token is already used across multiple Aave markets. On X Layer, USDe is deployed through Ethena’s LayerZero OFT setup, which the proposal says allows the asset to move across supported networks via Ethena’s canonical cross-chain deployment.

Proposed listing parameters

Under the draft configuration, USDe would not be placed in isolation mode and would be enabled as both a borrowable and collateral asset. The proposal sets a 100 million supply cap and a 50 million borrow cap, with no debt ceiling listed.

Risk settings in the post include a 70% loan-to-value ratio, a 73% liquidation threshold and an 8.5% liquidation bonus. The liquidation protocol fee would be 10%, reserve factor 25%, and stable-rate borrowing would remain disabled. Flashloans would be enabled, while siloed borrowing and borrowing in isolation would not be allowed.

The interest rate model outlined in the proposal uses a 6.30% variable base, 0.25% slope 1, 40.00% slope 2 and a 90.00% optimal utilization point. The authors say the collateral settings are intended to let USDe be used directly in the general market while keeping a conservative gap between loan-to-value and liquidation threshold.

How USDe would fit into X Layer E-Mode

The proposal also asks to add USDe as a borrowable stablecoin in X Layer’s existing E-Mode categories tied to xBTC, xETH, xSOL and wOKB. In those categories, USDT0, USDG, USDC and GHO are already configured as borrowable stablecoins, and the change would extend that same treatment to USDe.

For eMode category 1, built around xBTC, the posted settings show a maximum LTV of 78%, liquidation threshold of 81% and liquidation bonus of 6%. Category 2, centered on xETH, keeps the same 78% maximum LTV, with an 80% liquidation threshold and 6% liquidation bonus.

Category 3 for xSOL is set at 65% maximum LTV, 70% liquidation threshold and 7.5% liquidation bonus, while category 4 for wOKB uses 50%, 55% and 10% respectively. The filing also references eMode category 9 for stable assets including USDe, USDT0, USDG, USDC and GHO, with a 90% maximum LTV, 93% liquidation threshold and 2% liquidation bonus. In that category, USDe itself would not be borrowable.

Oracle design still subject to confirmation

For pricing, the proposal points to Chainlink’s USDT/USD reference feed on X Layer mainnet and suggests valuing USDe through that feed combined with a Stable Price Cap Adapter. The referenced Chainlink product is listed as USDT/USD-RefPrice-DF-XLayer-001.

The proposed setup includes an upper price deviation limit of 4%. However, the post explicitly says the final oracle contract, adapter deployment and configuration still need confirmation from Aave’s risk and technical service providers.

What comes next

The rationale for the listing is to broaden stablecoin choice on Aave’s X Layer market and give users another asset for lending, borrowing and collateralized strategies alongside USDT0, USDG, USDC and GHO. The authors also argue that enabling USDe as collateral in the general market would allow USDe-backed borrowing strategies without the need for a dedicated E-Mode configuration.

The filing is an ARFC, meaning the onboarding terms are not final. The post states that the risk parameters and technical implementation remain subject to review and recommendations from Aave’s service providers before any final listing step is confirmed.

Source: governance.aave.com