collateral

The decentralized lending protocol Moonwell, through governance proposal MIP-X75, has reduced the collateral requirements for existing loans and removed VELO and wrsETH from the list of collateralizable assets. This adjustment involves the lending markets deployed on Base and Optimism.After the proposal takes effect, the reduction in collateral limits will compress the borrowing capacity of existing borrowers. Users close to the borrowing limit who do not reduce their debt or supplement with eligible collateral will face liquidation.

LlamaRisk proposed a gradual exit from the Aave V3 Core portion of collateral, involving approximately 1.33 billion dollars in assets and its supported 1.03 billion dollars in debt.

Aave V4's Global Dollar Hub has supported PAXG as collateral, allowing users to borrow USDG and PAXG.

Bitcoin ecosystem protocol Arch acquires the American housing financing platform Horizon, with the amount undisclosed. The latter issues home equity lines of credit secured by crypto assets, allowing users to purchase homes or access home equity without having to sell their coins first.

Coinbase posted on platform X that users can now borrow USDC in the United States, except for New York State, by collateralizing PAX Gold (PAXG).

According to Fields' concept, an attacker stealing 1 BTC needs to provide an additional 1 BTC from a quantum-safe wallet as collateral, and both funds will be locked for a waiting period, such as 30 days.Before quantum attacks become a reality, the original owner can create a quantum-safe "mine" that contains hidden proof of ownership. If the thief later attempts to transfer the vulnerable coins, the stolen BTC and the thief's collateral will be locked. The owner can disclose the proof during the waiting period to reclaim their BTC and receive the thief's collateral as a penalty. The thief cannot determine which addresses have traps before investing funds.

Coinbase posted on platform X that Coinbase Prime has now integrated liquidity from Deribit, the world's largest cryptocurrency options exchange, and supports over 20 assets, including BTC, ETH, SOL, XRP, AVAX, and HYPE.The platform currently supports BTC, ETH, and USDC as collateral, with more assets to be added gradually.

Aave posted on platform X that SPCXc is now live on the Coinbase tokenized stock Aave V4 market on Base, allowing users to use it as collateral to borrow USDC. The tokenized stock is only available to users in eligible jurisdictions outside of the United States.

Aave Pro has launched the collateral swap feature for Aave V4's Ethereum, Base, and Avalanche markets, allowing users to change collateral assets without having to close their positions.

According to Canton Network, Société Générale has transferred tokenized U.S. Treasury bonds valued at 10 million dollars as collateral through DTCC's tokenization service.Salim Nemouchi, Head of Global Equity Business for the Americas at Société Générale, stated that this transaction demonstrates the transferability of tokenized collateral among market participants. Canton Network indicated that the service initially focuses on U.S. Treasury bonds held by DTCC members and custodied at DTC.

According to official news, Chainlink 24/7 has officially launched. This oracle solution can continuously provide market data for stocks, commodities, and other real-world assets during trading hours, on weekends, and during holidays.Chainlink stated that the previous 24/5 Streams covered the data gaps on weekdays, while 24/7 extends to weekends and market holidays.

According to on-chain analyst Ai Yi (@ai_9684xtpa), the address associated with Kanye West that is engaged in cyclical long positions on ETH appears to be increasing its holdings. After the news of the Binance hack was disclosed on October 30, this address had previously sold 1,390 ETH in batches to reduce liquidation risk, with an average price of approximately $2,275.6, totaling about $3.163 million, resulting in a loss of approximately $317,000.After Binance opened large withdrawals, this address withdrew 2,074 ETH from Binance, valued at approximately $4.7 million.

Aave officially stated that, given that Threshold Network has proactively suspended tBTC minting and redemption services, the platform has restricted users from adding new deposits of tBTC and initiating new loans using tBTC as collateral.Aave emphasized that the protocol contracts remain unaffected, and users' existing positions remain unchanged, allowing them to continue repaying loans and withdrawing assets normally. Once Threshold completes its security maintenance, Aave will restore the related new deposit and loan functionalities.Previously, Threshold indicated that due to security maintenance, it has temporarily suspended new BTC deposits, tBTC minting, and new Bitcoin redemption requests through the Threshold application.

Hifi Finance disclosed that Hifi DAO has encountered a governance takeover attack, and HIFI token holders are effectively unable to control the protocol, governance smart contracts, and HIFI token supply. The team urges all users with collateral in the Hifi Protocol to withdraw immediately and specifically requests the controllers of the two relevant addresses to withdraw WETH from the protocol.Hifi Finance stated that the core team failed to detect and prevent this governance attack in a timely manner and takes full responsibility for it. The team has now taken measures to significantly limit the impact of the attack, and the final losses are yet to be determined, with preliminary estimates around $20,000. The DAO has sufficient funds to compensate all affected parties; the DAO's own liquidity has been permanently withdrawn from decentralized trading platforms.Additionally, all outstanding debts collateralized by RWA will be directly managed by the core team and will no longer be processed through the compromised smart contracts. The relevant debts still have ample capital support and are expected to be fully repaid by the original due date of March 26, 2027, with no new debts being issued by the protocol. The team stated that a complete investigation report will be released subsequently.

Some users are concerned that the frozen protocol collateral might trigger a chain liquidation in DeFi. He Yi, co-founder of Binance, responded that the 60 million USDT collateralized in AAVE is not fully frozen at this time.He Yi stated that the hacker actually only took away approximately 46 million dollars' worth of ETH. After this portion of the assets is unfrozen through the law enforcement system, an additional recoverable asset of about 14 million dollars will be available.

Ethena stated that the USDe reserve proof is usually provided weekly by independent third-party organizations such as Chainlink and Llama Risk. In light of the market events that occurred in the past few hours, Ethena has proactively released the latest reserve proof.Third-party organizations such as Chainlink and Llama Risk have confirmed that the USDe over-collateralization amount exceeds 60 million dollars, with a collateralization rate higher than 101%.

Bitwise DeFi Strategy Director Jonathan Man stated that the treasury managed by Bitwise has no exposure to Binance and has confirmed that the collateral assets used in its management strategy have not been affected.Jonathan Man also mentioned that DeFi seems relatively unscathed, but currently, funds are flowing into safe assets, and liquidity is tight in many major lending markets. Bitwise will continue to monitor the situation. On the same day, Binance's hot wallet was hacked.

The issuer of synthetic US dollars USDe, Ethena, stated in a post on X that it is aware of potential security incidents related to Binance. Ethena indicated that all collateral with exchange exposure is held with an off-chain custodian, rather than directly on the exchange itself. Ethena mentioned that updates will be provided through its official account once more details about the incident are known.Subsequently, Ethena added that the total unrealized profit and loss exposure to Binance amounts to approximately 8.8 million dollars, significantly lower than the excess reserve fund of over 60 million dollars. Ethena stated that information regarding collateral and reserve funds can be found on its transparency page, and it will provide reserve proof executed by multiple external agencies within a few hours, published in that discussion thread.On the same day, Binance announced that it is investigating reports of potential security issues and will release verified information through official channels. Binance co-founder Changpeng Zhao stated that the situation appears to be an attack on Binance and expressed expectations that user funds will be fully covered.

The DeFi protocol Fluid has launched the DEX v2 beta version, which supports customizable collateral and debt ranges. Governance has set a borrowing limit of $50,000 for each asset for the new contracts deployed on Ethereum, while the creation of liquidity pools remains restricted.

The Bank of England has launched a consultation on how central counterparties (CCPs) can accept digital forms of eligible collateral, stating that current rules allow for such arrangements provided that the relevant assets meet clearing standards. The draft regulatory statement released by the bank will clarify the matters that CCPs must specify when submitting applications under the existing approval process, covering collateral that has been accepted as well as types that meet the criteria under the proposed UK CCP rulebook but have not yet been used in practice. The Bank of England emphasized that this statement will not create new regulatory obligations.The Bank of England pointed out that tokenized collateral must always be capable of being valued, transferred, and liquidated, including under stress scenarios; the improvement in cross-border transfer speed helps institutions meet margin calls in a timely manner. Sarah Breeden, the Deputy Governor responsible for financial stability, stated that this consultation reflects the bank's goal of promoting innovation in financial market infrastructure while maintaining financial stability, and is part of a broader agenda by regulators and the industry to promote the responsible application of tokenization in financial markets.The consultation document will close for feedback on February 12, 2027, and the Bank of England plans to subsequently publish a policy response and related rules.