Aave Labs published an ARFC on September 14 seeking approval to deploy a new Aave V4 Isolated Hub and Spoke for institutional custodied collateral to be used as stablecoin borrowing collateral. According to ChainCatcher, institutional borrowers would keep collateral in custody at Anchorage during the loan term, while the custody balance would be represented onchain by the non-transferable custody collateral token CoCT, minted and burned by Chainlink-designed CustodySync.
Borrowers would stake CoCT on the Spoke and withdraw stablecoins from the Isolated Hub. The proposal says loan lifecycle events, including liquidation, would be synchronized between the custodian and Aave through Chainlink infrastructure. The scope is limited to one Isolated Hub and one Spoke governed by the Aave DAO, with no changes to existing Hubs, Spokes, or reserves.
The underlying assets would remain in custody at all times, with Anchorage holding the assets as the custodian and counterparty to the account control agreement, while Chainlink would not hold the assets. CoCT is described as a transfer-restricted ERC-20 that can only be used by the Hub, Spoke, and CustodySync, with minting and burning handled exclusively by CustodySync and each borrower position mapped to a separate contract.
The initial plan is to launch one CoCT backed by BTC held in Anchorage custody. The next step is discussion of the ARFC, followed by Snapshot if supported and then a final AIP submission with parameters.
Weatherly
