Increase Bridged USDC Reserve Factor Across All Deployments

Increase Bridged USDC Reserve Factor Across All Deployments





Simple Summary

This AIP is composed of three actions:

  1. To start periodically increasing the Reserve Factor (RF) for Bridged USDC(USDC.e & USDbC) across Arbitrum, Optimism, Polygon and Base Aave deployments.
  2. A continuation of the proposals on Governance V3 that increases the Reserve Factor (RF) for assets on Ethereum V2, Avalanche V2, and Polygon V2 by 5.00%, up to a maximum of 99.99%.
  3. A continuation of the proposal to adjust Polygon v2 Borrow Rate.


Presently, Bridged USDC (USDC.e & USDbC) competes with native USDC on the listed markets. By gradually increasing the RF for Bridged USDC(USDC.e & USDbC), the deposit rate on these markets will become less attractive over time. Similar to other proposals, this action is expected to encourage users to switch to native USDC on the respective market.

Upon implementing this proposal, a subsequent AIP will be submitted that increases the RF by 5.00% up to a maximum of 99.99% every 2 weeks, subject to market conditions. The RF amendments will be incorporated into the fortnightly RF and Borrow Rate adjustment AIP to reduce voting overhead.

This AIP will also reduce deposit yield for assets on Ethereum, Avalanche, and Polygon V2 deployments by increasing the RF. With this upgrade being passed, users will be further encouraged to migrate from Ethereum V2 to V3.

Increasing the RF routes a larger portion of the interest paid by users to Aave DAO's Treasury. User's funds are not at risk of liquidation and the borrowing rate remains unchanged.


MarketAssetCurrent RFNew RF
Polygon V3USDC.e20%25%
Optimism V3USDC.e20%25%
Arbitrum V3USDC.e20%25%
Base V3USDC.e20%25%
Ethereum V2DAI55%60%
Ethereum V2LINK60%65%
Ethereum V2USDC55%60%
Ethereum V2USDT55%60%
Ethereum V2WBTC60%65%
Ethereum V2WETH55%60%
Avalanche V2DAIe50%55%
Avalanche V2USDCe50%55%
Avalanche V2USDTe50%55%
Avalanche V2WAVAX50%55%
Avalanche V2WBTCe55%60%
Avalanche V2WETHe50%55%
Polygon V2DAI96%99.99%
Polygon V2USDC98%99.99%
Polygon V2USDT97%99.99%
MarketAssetCurrent Slope1New Slope1
Polygon V2DAI9.75%11.25%
Polygon V2USDT9.75%11.25%
Polygon V2wBTC4.75%6.25%
Polygon V2wETH4.75%6.25%
Polygon V2wUSDC9.75%11.25%
Polygon V2wMATIC4.75%8.25%



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by BGD Labs