Aave Labs Proposes V4 Isolated Hub to Use Custodied Assets as Collateral for Stablecoin Borrowing
Odaily News: Aave Labs released an ARFC proposal on September 14 to deploy an Aave V4 isolated Hub and Spoke, using institutional custodied assets as collateral to borrow stablecoins. The first instance is proposed to use BTC custodied by Anchorage, with Anchorage holding the underlying collateral throughout the entire loan lifecycle.
Collateral ratios, liquidation penalties, supply and borrow caps, interest rate models, and oracle configurations will be proposed by DAO risk service providers in a subsequent AIP. The proposal must pass through the ARFC feedback, Snapshot vote, and AIP processes in sequence.