# Add LUSD to Arbitrum Aave V3
AI summary
This proposal seeks to add LUSD, a decentralized stablecoin backed by Ethereum, to the Aave V3 lending platform on the Arbitrum network. LUSD is already available on Aave's Ethereum and Optimism deployments. The proposal suggests listing LUSD as a borrowable asset with a supply and borrow cap of 900,000 units, but it cannot be used as collateral (Loan-to-Value or LTV is 0%).
If passed, Aave users on Arbitrum will have another stablecoin option for borrowing, increasing stablecoin diversity on the platform. This could benefit users looking for a decentralized borrowing option. There are no direct financial losses to any specific group, but the protocol takes on new risk by adding a new asset.
Voting results
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Add LUSD to Arbitrum Aave V3
AAVE-V3-ARBITRUM-LUSD-LISTING
Author(s): Llama (Fermin Carranza, TokenLogic)
Summary
This publication presents the community with the opportunity to add LUSD to Aave Arbitrum v3.
Abstract
LUSD is decentralised stable coin backed by ETH that is minted on the non-custodial, immutable, and governance-free, Liquidity Protocol.
Adding LUSD to Arbitrum will promote stable coin diversity. All Liquidity Protocol contracts are immutable, which makes LUSD the most trustless stablecoin available.
This publication proposes listing LUSD with collateral disa…