【Borrow against Nvidia stock tokens, and if something goes wrong on Saturday, no one can give you a quote 🩸】
Group chat: 🚀 加入X先生的粉丝群聊
People holding Nvidia stock tokens have a new option: borrow stablecoins without selling their tokens.
📢 On October 22, lending protocol Morpho launched a lending market on Robinhood’s own blockchain, allowing users to borrow $USDC against tokenized stocks. The liquidation threshold for Nvidia tokens is 62.5%. In simple terms, you can put up Nvidia tokens as collateral after Friday’s close and get cash immediately, with interest accruing by the second.
Why only now?
From September 24 to October 23, tokenized U.S. stocks traded $3.7 billion on Robinhood’s blockchain. 60% of that volume occurred outside regular trading hours, with weekends and holidays accounting for $532 million. On-chain markets run 24/7, while Nasdaq and the NYSE close on weekends. That gap in trading hours is the business opportunity.
Where does the risk lie?
Nvidia tokens are priced by oracles. When the market is closed on weekends, quotes stay frozen at Friday’s closing price, while interest keeps accruing and liquidation thresholds remain in effect. LlamaRisk found that most lending against tokenized U.S. stocks takes place after U.S. markets close.
However, liquidation thresholds vary across platforms. Morpho sets a 62.5% liquidation threshold for Nvidia tokens and 77% for S&P 500 ETF tokens. Among the stock tokens supported by Aave, Microsoft can be borrowed against up to 79% of its market value, while Tesla and Meta are capped at just 65%. Parameters for similar assets can differ widely.
⚠️ Borrowers using the maximum available leverage on Aave and Morpho are in the most danger. Aave’s borrowing limit and liquidation threshold are almost identical, leaving borrowers right at the edge of liquidation as soon as they open a position. One piece of bad news on Saturday could leave them underwater when markets open on Monday.
📌 What really deserves attention is which of Morpho and Aave will be first to add weekend safeguards, such as more conservative collateral ratios or delayed liquidation windows. Whoever plugs this gap is the one who deserves to capture the growth.
Understanding the timing gap in on-chain lending helps explain why tokenized assets struggle to trade at a premium.
#Morpho
Group chat: 🚀 加入X先生的粉丝群聊
People holding Nvidia stock tokens have a new option: borrow stablecoins without selling their tokens.
📢 On October 22, lending protocol Morpho launched a lending market on Robinhood’s own blockchain, allowing users to borrow $USDC against tokenized stocks. The liquidation threshold for Nvidia tokens is 62.5%. In simple terms, you can put up Nvidia tokens as collateral after Friday’s close and get cash immediately, with interest accruing by the second.
Why only now?
From September 24 to October 23, tokenized U.S. stocks traded $3.7 billion on Robinhood’s blockchain. 60% of that volume occurred outside regular trading hours, with weekends and holidays accounting for $532 million. On-chain markets run 24/7, while Nasdaq and the NYSE close on weekends. That gap in trading hours is the business opportunity.
Where does the risk lie?
Nvidia tokens are priced by oracles. When the market is closed on weekends, quotes stay frozen at Friday’s closing price, while interest keeps accruing and liquidation thresholds remain in effect. LlamaRisk found that most lending against tokenized U.S. stocks takes place after U.S. markets close.
However, liquidation thresholds vary across platforms. Morpho sets a 62.5% liquidation threshold for Nvidia tokens and 77% for S&P 500 ETF tokens. Among the stock tokens supported by Aave, Microsoft can be borrowed against up to 79% of its market value, while Tesla and Meta are capped at just 65%. Parameters for similar assets can differ widely.
⚠️ Borrowers using the maximum available leverage on Aave and Morpho are in the most danger. Aave’s borrowing limit and liquidation threshold are almost identical, leaving borrowers right at the edge of liquidation as soon as they open a position. One piece of bad news on Saturday could leave them underwater when markets open on Monday.
📌 What really deserves attention is which of Morpho and Aave will be first to add weekend safeguards, such as more conservative collateral ratios or delayed liquidation windows. Whoever plugs this gap is the one who deserves to capture the growth.
Understanding the timing gap in on-chain lending helps explain why tokenized assets struggle to trade at a premium.
#Morpho
