Higher JAAA Borrowing Limits Take Effect on Aave Horizon

Aave Labs said it had put higher reserve-tier borrowing limits for Janus Henderson Anemoy AAA CLO Fund shares (JAAA) on Aave Horizon into effect, expanding how much borrowers can take against the tokenized collateral.

The reserve-tier loan-to-value (LTV) limit rose to 87% from 81%, and the liquidation threshold rose to 89% from 86%. The liquidation bonus remained 5%. A separate GHO E-Mode LTV limit stayed at 88%.

The changes advance an October proposal to change JAAA’s collateral limits. LTV caps borrowing against collateral. The liquidation threshold marks when collateral becomes eligible for liquidation.

JAAA supply totaled $51.9 million across 11 addresses on Oct. 15. Seven reserve-tier positions carried $45 million in debt: $34.5 million in Ripple USD (RLUSD) and $10.5 million in GHO.

JAAA is issued through Centrifuge and backed by AAA-rated collateralized loan obligation tranches. Aave Horizon is a separate, licensed market initially forked from Aave V3.3. Users need approval from a real-world asset issuer to supply tokenized collateral there; stablecoin suppliers can participate without that approval.