Aave Weighs SpaceX Stock as Collateral Amid Share Unlock

The Aave protocol is evaluating the inclusion of tokenized SpaceX shares as collateral on its V4 Equities Hub platform via the Base network. The proposal faces hurdles due to the impending unlock of a massive volume of shares from the aerospace company.

Approximately 1.3 billion SpaceX shares will become eligible for sale on October 22. This total volume is valued at roughly 194.3 billion dollars based on the recent closing price of 147.89 dollars per unit.

Risk consultancy LlamaRisk has recommended a 55% collateral factor for the SPCXc asset. The proposed limit for using these shares as collateral is 37,000 tokens. The analysis takes into account an annualized volatility higher than that of other stocks currently supported by the protocol.

The unlock schedule was moved up by two weeks following the release of SpaceX financial results. LlamaRisk modeled the risk based on potential sharp price drops during after-hours trading and the liquidity available on the network.

The entry of traditional assets into the decentralized finance ecosystem increases exposure to global macroeconomic risks. This integration could heighten volatility in the crypto market by linking the performance of private companies to on-chain liquidity.