Aave Unveils Stock Token Lending with Weekend Price Gap Risk
Aave has launched its Stock Token Collateral Lending feature, allowing seven Coinbase stock tokens to be used as collateral for USDC loans. Starting September 25, borrowers can use AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc, and TSLAc as collateral in the Mag-7 lending pool.
The protocol remains open during the weekend, but the oracle price for stock collateral will lock in Friday's price until Sunday evening. Borrowers can still trade tokens over the weekend, but the protocol cannot detect deterioration in collateral health due to falling stock prices until the oracle resumes quoting.
Lenders opting into this pool assume the risk of weekend price gaps and may incur bad debt if liquidators are unable to fully recover assets from seized tokens. The USDC borrowing cap is $21 million, representing the maximum borrowing limit, not the current outstanding loan amount.