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Aave Proposes Custodied Collateral Lending
Aave DAO weighs an isolated V4 hub enabling institutions to borrow stablecoins against Anchorage-custodied collateral via Chainlink CustodySync.
An Aave DAO proposal seeks Custodied Collateral Lending, an integration powered by Aave V4 that allows institutional borrowers to draw stablecoins against assets held offchain with regulated custodian Anchorage. The architecture relies on an isolated Liquidity Hub and a dedicated Spoke governed by the Aave DAO, ensuring custodied collateral remains segmented from main liquidity pools with zero draw caps.
The underlying assets remain with Anchorage throughout the loan lifecycle. The proposed market aims to address legal requirements for institutional funds to hold assets with a custodian. The implementation would use Chainlink to coordinate position state across offchain custody and onchain lending via its CustodySync infrastructure and Proof of Reserve feeds.
Custodied collateral is mirrored on the Spoke through a non-transferable Custodied Collateral Token (CoCT), an internal accounting unit minted and burned exclusively by CustodySync. When an institutional borrower initiates a borrow, stablecoins route atomically from the Spoke to the borrower address in a single transaction.
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