Aave’s live stock-token loans expose USDC lenders to a weekend price gap
Summary
Aave’s Base Mag-7 lending market accepts seven Coinbase stock tokens as collateral for USDC loans, with a $21 million borrowing cap. The market remains open on weekends, but Chainlink price feeds for the stock tokens freeze from Friday evening until Sunday evening and on market holidays. A sharp price move during that gap may only trigger liquidations when feeds resume, potentially leaving liquidators with hard-to-sell or hedge collateral and creating bad debt for opted-in USDC suppliers. Risk parameters were designed using historical off-hours declines, but do not guarantee protection against larger moves or thin liquidity. The cap is not evidence of actual borrowing, and no loss has been reported.
