Aave Labs Proposes Deploying V4 Isolated Hub, Custodied Assets Can Serve as Collateral for Stablecoin Borrowing

Odaily reports that Aave Labs released an ARFC proposal on September 14, planning to deploy an Aave V4 isolated Hub and Spoke, using institutional custodied assets as collateral for borrowing stablecoins. The first instance plans to use Anchorage-custodied BTC, 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 sequentially pass through the ARFC feedback period, Snapshot vote, and AIP process.