simo retweeted
Excited to announce Coinbase Tokenized Stocks are now live on Aave V4 on @base.
Users can borrow USDC against tokenized stocks.
Aave is on a mission to bring the $200T global equities market onchain.
Coinbase Tokenized Stocks are live on Aave V4 on @base.
Tokenized stocks are only available in eligible jurisdictions outside of the U.S.
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Let's meet at Token 馃懟馃嚫馃嚞
See you all in Singapore 馃嚫馃嚞
Drop me a DM if you鈥檙e looking to launch Earn programs, deploy capital onchain, issue RWAs, or build with stablecoins.
@luigidemeo, @alphaleaked, and I would love to meet you.
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simo retweeted
A first-of-its-kind proposal to enable institutions to borrow stablecoins on Aave V4 against collateral held with a qualified custodian, accessing liquidity directly from Aave V4 markets.
Powered by @Anchorage and @chainlink.
A new governance proposal introduces Custodied Collateral Lending, powered by Aave V4.
It would allow institutions to borrow stablecoins on Aave against assets held in custody at @Anchorage, synchronized through @chainlink infrastructure.
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simo retweeted
Aave v4 deposits are at ~$910M and should reach $1B in the next days.
The hub and spoke model is now in motion with 6 hubs and 16 spokes live. Core Ethereum is the largest hub at $433M, followed by EtherFi Cash at $263M, Global Dollar at $93M, Prime at $72M, Plus at $24M and Core Avalanche at $23M.
Partners have both contributed to and benefited from this growth. @ether_fi, @global_dollar and @ethena each run dedicated spokes, bringing their own users in while drawing on shared hub liquidity they would otherwise have to bootstrap alone. @avax brought a new chain deployment. @arc and @base have been publicly announced also as coming next.
@aave v4 Hub x Spoke architecture compounds. Every new spoke increases the shared liquidity, which makes the next spoke cheaper to launch and better funded.
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Aave V4 on Ethereum: $575M in deposits, $215M in active loans.
$320M of those deposits are collateral cannot be borrowed by design.
Strip them out and V4's credit book is 83% drawn.
Five months old and already pricing like a mature market.
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simo retweeted
Coinbase Tokenized Stocks is part of Aave鈥檚 broader goal to rebuild securities finance onchain, powered by Aave V4.
Coinbase Tokenized Stocks, coming soon to Aave V4 on @base.
Only available in eligible geos ex U.S.
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馃
This morning a Pendle PT lending market was manipulated. A push of less than 3% in the pool price liquidated twelve borrowers holding roughly $36M in positions.
LlamaGuard PT, which we're bringing to Aave, prevents this attack vector.
Borrowers in the PT-reUSD lost about $1.35M between them. Every one of those positions was healthy minutes before. The tightest buffer was half a percent, the widest about two. The design accepts a tradeoff, lenders are insulated while borrowers bear the risk.
The affected markets price PT collateral from a short TWAP of the Pendle pool, taking the lower of that TWAP and a fixed linear discount. But it also connects borrower health factors directly to pool conditions. Whoever can move the pool for a single TWAP window moves the oracle, and in a PT looping market the whole book stacks near the LTV ceiling by design. That's why a sub-3% move made essentially every leveraged position liquidatable at the same moment. It's a defensive market, and the defense is paid for in user experience: holding a position safely means keeping a wide buffer and watching the pool around the clock.
The Aave market, powered by LlamaGuard, is defensive. The quoted price is deliberately conservative. The difference is in how the oracle is allowed to move. It never quotes the pool directly. It quotes a linear discount that re-rates toward a smoothed, multi-day average of the market rate, and only when the drift crosses a published 0.30% gate, no more often than a minimum delay allows, in steps bounded by limits that live in contracts Aave Governance owns. A borrower's health factor moves gradually and predictably.
Run today's attack against LlamaGuard's design. A fifteen-minute pool push barely dents a multi-day smoothed rate. Even a sustained displacement buys the attacker one bounded step per delay window, each with limited price impact. Walking the oracle down far enough to force a cascade means holding the Pendle pool displaced for days, in public, while every step prints on-chain and the risk stewards and guardian watch it happen. The attack doesn't become impossible. It becomes slow, expensive, and visible, with the payoff throttled to a trickle. Manipulation is an economics game, and the economics invert.
A second layer compounds this. On the Aave market the liquidation threshold is dynamic: it rises toward its cap as the PT approaches maturity while the liquidation penalty falls toward its floor. Open a position near the line and, all else equal, your health tends to improve with time, both because the PT pulls to par and because the threshold walks up beneath you. Under a static configuration, a tight position only ever decays.
Put together: the protocol is protected by the dynamic liquidation threshold, borrowers are protected by capped and predictable oracle steps, and the market's stability doesn't hang on a pool that can turn illiquid or volatile without warning.
That's what a risk layer is for. The full argument, and the architecture behind it, is in the piece below. 馃憞
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Debt repaid via liquidations: ~$36.39M
Liquidation penalty: 2.61%
Loopers total loss: ~$950k
Largest single liquidation: ~$180k+
Aave is the only place to loop and leverage safely.
Aave will win.
#PeckShieldAlert Wallet 0x854e...690d market-bought YT $reUSD, pushing the implied yield up to 20%, then quickly dumped the position - triggering ~$36.39M in liquidations on Morpho's PT $reUSD loop positions
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