Is Aave Taking Over Tokenized Gold In Defi?
Aave (
@aave) V3 now holds more than 50% of tokenized gold deposited across DeFi lending protocols.
PAXG and XAUT have become important collateral assets on the protocol’s Ethereum deployment.
Aave’s isolation mode allows newer assets to enter with tighter risk controls.
The protocol also handled XAUT liquidation activity during March’s market stress without major disruption.
Still, only about 1.5% of tokenized gold is deployed as DeFi collateral.
Source: Token Terminal