Aave Launches Stock Token Lending on Base, Highlighting Weekend Liquidation Risks
Aave's Base market began allowing seven Coinbase stock tokens as collateral for USDC loans on September 25. The pool, which features a $21 million USDC borrowing cap, relies on Chainlink oracles that freeze prices from Friday to Sunday evening. This creates a risk where oracle price updates on Sunday night could trigger liquidations for positions that deteriorated during the weekend, potentially leading to bad debt if collateral liquidity is insufficient to cover the loans.
Summaries are written by AI from the original article. Not investment advice.