Tokenized Stocks Introduce Weekend Liquidation Risks in Aave's New Base Market
Aave V4 on Base has started accepting tokenized versions of Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla as collateral for USDC borrowing. The new market allows users to deposit and borrow without the traditional closing bell, but it also introduces unique risks due to price feed pauses over weekends.
Aave's Equities Hub continues to operate 24/7, accepting deposits, repayments, withdrawals, and liquidations at any hour. However, the Chainlink feeds used for risk assessment are only available from Sunday 20:00 ET to Friday 20:00 ET, causing price feed pauses over weekends.
The paused feed means that a borrower's loan remains live, but its collateral price is stuck at the last published value until the feed resumes. This can lead to unexpected liquidations when the fresh price reaches the protocol after market reopening on Sundays.
Aave assigns separate risk settings to each asset, with initial collateral factors ranging from 65% to 79%. Borrowing close to the maximum leaves little room for adverse price moves and interest accrual. The borrowing limit is a ceiling, not a safety target, and users need to be aware of their exposure when using tokenized stocks as collateral.