Aave Reboots Tokenized Stock Loans on Base with $21M Withdrawal Limit

Aave has resumed operations on its Base platform after removing a temporary pause, allowing users to take loans against tokenized stocks. Specifically, seven Coinbase stock tokens - AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc, and TSLAc - can be used as collateral for USDC loans with a withdrawal limit of $21 million.

The system uses a unique pricing feed that combines the underlying stock's value with a Coinbase issuer multiplier. However, between Friday night and Sunday night, or on U.S. holidays, the price freezes at the last published value. This means that if the token prices drop during this time, it won't be reflected in the market until the update resumes on Sunday night.

While Aave's market remains open for deposits, borrowing, and liquidations, a potential issue arises when the repricing occurs. If liquidators cannot recover enough value from the tokens taken, the USDC hub accepting this collateral may default.