- Aave Labs proposed launching Aave V4 on Circle’s Arc mainnet with USDC, EURC, and cirBTC as initial assets.
- The plan includes at least $2M annual revenue to the Aave DAO, totaling $10M over five years.
- Governance is in early Temp Check stage, moving toward full DAO vote after community feedback and risk review.
Aave Labs has opened a community Temp Check proposing the deployment of Aave V4 on Arc, a new layer-1 blockchain built by Circle. The proposal seeks feedback on launching Aave V4 around Arc’s mainnet debut, supporting key digital assets, and advancing the plan through governance. According to Aave founder and CEO Stani Kulechov, the deployment includes a minimum $2 million annual revenue commitment to the Aave DAO over five years.
Proposal Targets Arc Mainnet Launch
The proposal arrives as Arc prepares for its mainnet rollout. Circle developed the network to support digital dollar liquidity, tokenized assets, and onchain financial activity.
According to Aave Labs, deploying Aave V4 on Arc would position the protocol among the network’s primary lending markets. The proposal also aims to expand Aave’s role within institutional and fintech liquidity flows.
In addition, Aave Labs said the deployment could increase available markets for Circle-issued assets. The proposal also targets additional total value locked and protocol revenue opportunities.
Initial Assets and Revenue Structure
Attention now turns to the proposed asset scope. Aave Labs identified USDC, EURC, and cirBTC as the initial assets under consideration.
However, final asset approvals would depend on feedback from Aave DAO service providers. Risk assessments and parameter recommendations would also form part of later governance discussions.
Alongside the asset proposal, Aave Labs outlined a revenue support framework. Under the plan, the Aave DAO would receive at least $2 million annually.
According to Kulechov, the commitment would total $10 million over five years. Certain Arc ecosystem participants would cover any revenue shortfalls during that period.
Governance Process Moves Forward
The proposal remains in its earliest governance stage. Aave Labs said the Temp Check seeks community feedback before progressing further.
If community sentiment remains positive, the initiative will advance to the Aave Request for Final Comments stage. That phase would include technical specifications, incentive structures, liquidity commitments, and risk frameworks.
Afterward, the proposal would move to an onchain governance vote through an Aave Improvement Proposal. Following approval, deployment preparation would begin, with activation scheduled after successful execution on Ethereum mainnet.
Aave Labs said community members can currently provide feedback on the Arc deployment, proposed assets, and progression to the next governance stage.
