Aave Labs proposes adding Circle’s cirBTC collateral to Aave V3/V4

Aave moves to list Circle’s cirBTC on V3/V4. ARFC opened June 10.

Aave Labs filed an ARFC to onboard Circle Wrapped Bitcoin (cirBTC) as collateral on Aave V3 Core and V4 Core on Ethereum Aave governance forum.

cirBTC is an ERC‑20 token backed 1:1 by Bitcoin held at a regulated Circle entity, with reserves segregated from corporate assets Aave governance forum.

Aave Labs said it has no financial relationship with Circle and is not compensated for this proposal Aave governance forum.

Status is ARFC. The listing still needs community feedback, a Snapshot vote, then an AIP for on‑chain implementation Aave governance forum.

If approved, Aave would add another BTC‑backed collateral option as Bitcoin wrappers compete for market share in DeFi lending Aave governance forum.

What to watch
- Timeline June 8 launch of cirBTC on Ethereum, June 10 forum post by Aave Labs Aave governance forum
- Risk work ahead reserve transparency, redemption mechanics, liquidity depth, oracle support, counterparty risk, and Aave parameters like supply caps and liquidation thresholds Aave governance forum