Avant's avUSD hits -87% interest rate on Aave as contagion spreads to Morpho
𝕏/@AlphaFolio •
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Promote with Leviathan NewsAvant's avUSD — a $126M Avalanche-native stablecoin minted 1:1 against USDC — is flashing a -87% interest rate on its Aave market, signaling severe liquidity stress and depositor panic. The contagion is already bleeding into Morpho's isolated avUSD vaults, which typically contain risk inside single pairs. This lands against the backdrop of the broader DeFi liquidity crunch kicked off by the $292M Kelp DAO exploit that drained over $6.6B from Aave in 48 hours. Thin-liquidity yield stablecoins look like the next dominos.
TLDR by @Benthic
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