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Aave’s Base stock-token loans could expose USDC to weekend gaps
The Base equities hub lets borrowers draw up to $21 million in USDC against seven Coinbase stock tokens, with collateral pricing frozen until Sunday evening.
Aave’s Base market has accepted seven Coinbase stock tokens as collateral for USDC loans since Sept. 25, creating exposure for USDC suppliers to a potential weekend pricing gap, according to CryptoSlate.
Aave Labs said its V4 Equities Hub was operational after a temporary halt ended, and it described the Mag-7 lending spoke as having a $21 million USDC draw cap, rather than a figure for loans already made.
The protocol keeps its lending system open while the stock-linked collateral feeds hold Friday’s values through the weekend, CryptoSlate reported. A borrower can still trade a token during the gap, but declines in the position’s health may only become visible after the feed resumes on Sunday evening.
If liquidators cannot recover enough value from seized tokens after the repricing, CryptoSlate reports the opt-in USDC lending hub could be left with bad debt. USDC is the only asset borrowers can draw from the dedicated hub, and the collateral tokens listed are AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc, and TSLAc.