[ARFC] Onboard stcUSD to Aave V3 MegaETH
AI summary
This proposal by Aave Labs suggests adding stcUSD, a yield-bearing stablecoin from Cap Protocol, to the Aave V3 MegaETH market. If approved, users would be able to deposit stcUSD to earn yield and use it as collateral to borrow other stablecoins. This aims to increase demand for stablecoin borrowing on Aave's MegaETH instance.
If this proposal passes, Aave V3 MegaETH users will gain a new asset, stcUSD, to deposit and use as collateral, potentially increasing their yield opportunities. This could benefit stablecoin suppliers on MegaETH by increasing borrowing demand, but also introduces a new asset with its own set of risks to the protocol.
Voting results
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🐳 Whale votes
11 votes > 5% VPFull proposal
[ARFC] Onboard stcUSD to Aave V3 MegaETH
Author: Aave Labs
Date: 2026-06-19
Summary
This ARFC proposes onboarding stcUSD to the Aave V3 MegaETH instance.
This listing would initially enable users to deposit stcUSD to earn yield and borrow stable assets to earn leveraged yield on their yield-bearing asset.
Motivation
stcUSD is the staked, yield-bearing component of Cap Protocol.
Users mint stcUSD by staking cUSD, with yield generated from the underlying cUSD collateral and protocol-level yield mechanisms.
Supplying stcUSD as collateral lets holders keep earning stcUS…