Aave has integrated seven tokenized stocks as collateral on its V4 protocol, enabling holders to borrow USDC on the Base blockchain. The mechanism relies on Chainlink pricing for collateral valuation, with collateral factors set between 65 % and 79 % depending on the stocks. Approximately one billion dollars changed hands over 30 days on Base, though activity remains concentrated on a few stocks and the Aerodrome platform, creating insufficient depth for larger positions. The main risk lies in forced liquidation of large collateral positions, which could trigger significant price declines and weaken the value of remaining collateral. Access is currently restricted to eligible non-U.S. users.
Source: Read the original article
Disclaimer: this content is for information purposes only and is not financial advice. Cryptocurrencies are highly volatile: you may lose all of your capital. Always do your own research. Legal notice
