[Direct to AIP] Enable XAUt e-Mode on Aave v3.6 Core Instance
Author: ACI
Date: 2026-01-13
Summary
This ARFC proposes to enable an e-Mode for XAUt (Tether Gold) on Aave V3 Core Instance, leveraging the new e-Mode flexibility introduced in v3.6. The proposal will be structured under a Direct to AIP.
Disclaimer: Proposal will be live when [Direct-to-AIP] Enhancing Market Granularity in Aave v3.6: Restricting Borrowability and Collateralization Outside of Liquid eModes is implemented with v3.6.
Motivation
With the recent launch of Aave v3.6 on the Core Instance, now is the ideal time to optimize the XAUt (Tether Gold) e-Mode.
XAUt was onboarded conservatively in isolation mode without an e-Mode to prioritize risk control as a gold-backed RWA. v3.6 enhances e-Mode flexibility, allowing exclusive collaterals, borrowables, and granular LTV rules within specific categories, without overriding default settings.
Revising XAUt’s e-Mode would enable:
- Assigning it to a suitable category (e.g., dedicated RWA/gold or correlated assets).
- Making USDT (aligned via Tether ecosystem) and GHO borrowable in that e-Mode.
- Unlocking higher LTV/LT for improved capital efficiency on gold positions, while keeping strict limits outside e-Mode.
This aligns with v3.6’s focus on better risk segmentation and efficiency, potentially boosting XAUt liquidity and adoption on Core.
Risk Parameters
Risk parameters will be provided by Risk Service Providers and the proposal will be updated accordingly.
Disclaimer
ACI is not presenting this proposal on behalf of any third party and is not compensated for creating this proposal.
Next Steps
- Publish proposal to gather community and Service Providers feedback.
- Publish an AIP vote for final confirmation and enforcement of the proposal.
Copyright
Copyright and related rights waived under CC0