Aave Labs has introduced an ARFC to onboard CapApp’s stcUSD as a collateral asset on the Aave V3 MegaETH market. The proposal was posted on the Aave governance forum on June 2, 2026, as displayed by the forum, and remains in the community feedback stage rather than an approved listing.
The proposal identifies stcUSD as the staked, yield-bearing component of Cap Protocol, minted when users stake cUSD. Aave Labs said Cap reported $399.42 million in total TVL as of June 1, 2026, along with 113.17 million cUSD in circulation, 81.69% of cUSD staked into stcUSD and a 5.26% stcUSD seven-day APY.
Collateral Listing Still Requires Governance Approval
The ARFC proposes stcUSD for the Aave V3 MegaETH market, with the token address listed as 0x88887bE419578051FF9F4eb6C858A951921D8888. The reference asset is cUSD, whose token address is listed as 0xcCcc62962d17b8914c62D74FfB843d73B2a3cccC.
The proposal does not set final collateral parameters yet. Aave Labs said LlamaRisk will provide the risk assessment and recommended Aave V3 parameters after the ARFC, meaning collateral factors, liquidation thresholds, caps and related controls remain pending.
The governance path is also still open. The stated next steps are community and service-provider feedback, LlamaRisk parameter review, ARFC Snapshot, and then an AIP for final DAO approval and execution if Snapshot passes. No timeline for Snapshot or on-chain execution was included in the post.
Risk Review Remains Central to the Listing
The proposal follows earlier work around Aave V3’s MegaETH deployment, which went live in February with conservative initial caps. Aave Labs said on February 10 that the MegaETH market had launched with WETH, BTCb, USDT0, USDm, wstETH, wrsETH and ezETH, while technical providers completed post-launch reviews.
LlamaRisk had previously reviewed cUSD and stcUSD as part of the broader MegaETH asset scope. Its February assessment provisionally supported onboarding once liquidity conditions improved, while noting that MegaETH liquidity for cUSD and stcUSD was still constrained at the time.
For users, the potential effect is straightforward but not yet active: if approved, stcUSD could be deposited as collateral on Aave V3 MegaETH to support borrowing strategies. Until governance approves the asset and parameters are deployed, the integration remains a proposal under review, not a live collateral market.
