Aave Moves Toward Adding Ethena USDe To V4 On Avalanche

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure TL;DR Aave governance is reviewing a proposal to onboard Ethena’s USDe to the V4 core instance on Avalanche. USDe uses LayerZero OFT architecture with a 24-hour timelock and an Ethereum escrow model across 31 networks. USDe is not yet live on Aave V4 Avalanche under this proposal. Aave is moving closer to adding Ethena’s USDe to its V4 core market on Avalanche. The proposal is being handled through a direct-to-AIP path after risk review, putting the synthetic-dollar asset into Aave’s formal governance pipeline. USDe Would Extend Aave V4’s Stablecoin Mix If approved, USDe would become available as collateral in Aave V4’s Avalanche core instance. The asset’s cross-chain design is a key part of the review. USDe uses LayerZero’s OFT architecture, with a 24-hour timelock and Ethereum-based escrow backing across a 31-network mesh. Those mechanics matter because a stablecoin‘s bridge and issuance structure can create risks that are separate from its price stability. Aave’s risk process therefore has to evaluate both the asset and the way supply moves across chains. Proposal Is Not Yet An Ac...