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Over the past five weeks, Aave’s own risk providers have documented what that business looks like in practice: GHO debt on its Horizon market jumped 68% in a month, largely through looped positions, and its main fund collateral can only be seized by parties the issuer approves.
Key Takeaways
On-Chain Footprint: Horizon’s GHO debt rose from 23.2 million to 39.0 million in the 30 days to September 14.
Historical Parallel: JAAA processed 93 redemptions worth $717.3 million in a year; 91 settled within one business day.
Macro Overlap: Citi’s October 19 note expects tokenization to spread from stablecoins to funds, private credit, bonds and equities.
Systemic Milestone: LlamaRisk proposed lifting JAAA’s Horizon loan-to-value limit from 81% to 87%, cutting the liquidation buffer to 2.25%.
What Citi is actually arguing
In an October 19 research note titled “US Digital Assets: Aave – Bringing Real World Finance Onchain,” Citi analysts Peter Christiansen and Aditi Balachandran argue that treating Aave purely as a crypto l...
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