Aave Community Proposal to Add $LUSD as a Borrowable Asset to Aave V2 Gets Passed

The Aave community proposal to add $LUSD as a borrowable asset to Aave V2 got passed. According to the proposal, $LUSD will be added as a borrowable asset only (0% LTV). If the demand for borrowing is sufficient, the LTV could later be raised and once mainnet v3 is available, efficiency mode could also be enabled. LUSD is stablecoin minted directly by the protocol users by opening a Trove and depositing ETH as collateral. It is overcollateralized by $ETH with two main mechanisms helping it keep its peg: first, LUSD can be redeemed for $ETH at face value (i.e., 1 $LUSD for $1 of $ETH). Secondly, there is a minimal collateral ratio of 110%.