Aave governance proposes Custodied Collateral Lending, enabling institutions to borrow stablecoins against assets held with Anchorage and synchronized via Chainlink

A new Aave governance proposal, powered by Aave V4, would let institutions borrow stablecoins against assets held in custody at Anchorage. Anchorage would hold the collateral throughout the loan, run the collateral management system serving as the source of truth for balances and lifecycle events, and execute liquidations as OTC sales of the underlying asset. Chainlink CustodySync would mirror custodial balances onchain via a non-transferable receipt token, while Chainlink price feeds would keep LTV synchronized between Aave and the custodian. Borrowed stablecoins would reach the borrower in a single transaction, with lending operating inside an isolated Liquidity Hub.

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• AAVE
• Governance
• Anchorage Digital
• Lending