Aave Brings Tokenized Stocks onto Lending Platform
Aave has integrated seven tokenized stocks from Coinbase into its lending protocol on Base, allowing users to borrow USDC against their collateral. The stocks include Apple (AAPLc), Amazon (AMZNc), Alphabet (GOOGLc), Meta (METAc), Microsoft (MSFTc), Nvidia (NVDAc), and Tesla (TSLAc).
The initial risk parameters for each stock vary, with the lowest factor at 65% for Meta and Tesla tokens and the highest at 79% for Microsoft. This means that users posting a certain value of these tokens will have different borrowing capacities.
Aave has also set caps on the amount of each stock token that can be supplied and on USDC borrowing, as well as parameters to prevent liquidation in case of a drop in collateral value. The platform expects to consider more Coinbase tokenized stocks and GHO as another borrowable asset in the future.