Continuously track changes in the fundamentals of $AAVE
Aave and Anchorage have partnered to connect institutional custody assets to Aave V4 for lending.
At the moment, what I care about most is whether Aave can use this to open up incremental demand in institutional lending. After all, $MORPHO has currently taken a lot of market share from AAVE.
A simple way to understand this partnership: assets like BTC continue to be held with Anchorage custody and do not need to be moved on-chain. Chainlink's CustodySync maps the custodial balances into non-transferable CoCTs, and institutions then use CoCT as collateral to borrow stablecoins from Aave V4's isolated market. If liquidation is later triggered, Anchorage handles it off-chain.
So this business naturally needs to be placed in an Isolated Market to avoid risk contagion with Aave's existing liquidity pools.
In addition, Aave is also exploring lending stock tokens.
Next, we'll see whether these new AAVE business lines can ultimately convert into TVL, lending volumes, and protocol revenue.
If the data starts to rebound, AAVE's fundamentals will gradually improve as well—I'll keep tracking. If there are any new developments, I’ll update them in the forum promptly.
Aave and Anchorage have partnered to connect institutional custody assets to Aave V4 for lending.
At the moment, what I care about most is whether Aave can use this to open up incremental demand in institutional lending. After all, $MORPHO has currently taken a lot of market share from AAVE.
A simple way to understand this partnership: assets like BTC continue to be held with Anchorage custody and do not need to be moved on-chain. Chainlink's CustodySync maps the custodial balances into non-transferable CoCTs, and institutions then use CoCT as collateral to borrow stablecoins from Aave V4's isolated market. If liquidation is later triggered, Anchorage handles it off-chain.
So this business naturally needs to be placed in an Isolated Market to avoid risk contagion with Aave's existing liquidity pools.
In addition, Aave is also exploring lending stock tokens.
Next, we'll see whether these new AAVE business lines can ultimately convert into TVL, lending volumes, and protocol revenue.
If the data starts to rebound, AAVE's fundamentals will gradually improve as well—I'll keep tracking. If there are any new developments, I’ll update them in the forum promptly.
