Summary
This proposal seeks to onboard Circle Wrapped Bitcoin (cirBTC) to the Aave V3 Core Instance and the Aave V4 Core Instance on Ethereum, with collateral functionality enabled.
Motivation
cirBTC is an ERC-20 representation of native BTC issued by Circle, launched on Ethereum mainnet on June 8, 2026. Each unit is backed 1:1 by Bitcoin custodied at a regulated Circle entity and segregated from Circle’s corporate assets.
Onboarding cirBTC as a collateral asset is aligned with the DAO’s long-term objectives in several ways:
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It broadens the set of BTC denominated collateral available on Aave, complementing existing wrapped Bitcoin exposures already present on the Core instances.
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It enables users to borrow against a regulated, BTC backed wrapped representation, supporting demand from institutional participants and DeFi protocols.
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It strengthens the Core instances’ position as a venue for BTC denominated leverage and liquidity strategies.
Specification
Risk Parameters and final configuration will be updated by Risk Service Providers and ARFC will be updated accordingly.
Useful Links
Disclaimer
This proposal was prepared by Aave Labs in its capacity as a contributor to the Aave ecosystem. Aave Labs has no financial relationship with Circle or any of its affiliates and has not received compensation from Circle in connection with this proposal.
Next Steps
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Gather community feedback during the ARFC stage.
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Service Providers to post Asset Technical Assessment and Asset Risk Assessment, including supply caps, reserve factor, interest rate parameters, and oracle configuration for both instances.
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If the ARFC response is positive, escalate to Snapshot for off-chain confirmation.
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Submit the corresponding AIP for on-chain enforcement on the Aave V3 Core. Execute the corresponding transaction through the V4 Security Council on the Aave V4 Core.
Copyright
Copyright and related rights waived via CC0.