Aave is moving on two separate governance tracks to expand its V4 collateral and stablecoin base. The first proposal would onboard Ethena’s USDe to Aave’s V4 core instance on Avalanche, while the second would add Societe Generale-FORGE’s EURCV euro stablecoin to the V4 core instance on Ethereum.
USDe on Avalanche: The USDe proposal follows a direct-to-AIP path after risk review, meaning it has advanced into Aave’s formal governance pipeline. USDe uses LayerZero’s OFT architecture with a 24-hour timelock and an Ethereum-based escrow model across a 31-network mesh. Aave’s risk process must evaluate both the asset and how supply moves across chains, since bridge and issuance structures can introduce risks separate from price stability. USDe is not yet live on Aave V4 Avalanche under this proposal.
EURCV on Ethereum: The second proposal is at the ARFC stage and has conditional support from LlamaRisk. EURCV is issued by Societe Generale-FORGE and positioned as a MiCA-compliant euro stablecoin. LlamaRisk’s support includes additional verification requirements around the issuer’s security and bug-bounty framework. The asset is not yet listed in Aave V4’s Ethereum market.
Both reviews reflect how large DeFi protocols are increasingly competing for breadth of collateral and stablecoin liquidity, and how they must weigh institutionally issued stablecoins that may offer regulatory clarity but come with issuer-specific controls and dependencies.
