Some Aave loans sit near liquidation with collateral that can take hours to cash out
Photo: CryptoSlate
Some Aave loans backed by yield-bearing collateral had narrow liquidation buffers in LlamaRisk’s Oct. 9 snapshots. Every top PT-AUSD supplier on Monad carried debt, while two syrupUSDC positions accounted for about 97% of supplied syrupUSDC on Arc. Cashing out the collateral involves a market sale or, for Arc holders choosing Ethereum redemption, a withdrawal queue that can take hours. The two markets present separate versions of the same cash-flow problem. If a borrower becomes eligible for liquidation , a liquidator supplies the borrowed stablecoin, receives collateral and then recovers cash from it. December PT-AUSD requires a sale before maturity.
Source: CryptoSlate
