TokenLogic proposes Aave V4 deployment on Monad with tokenized equities

• Three spokes split assets by one-year realised volatility: Core (under 25%), Growth (25-60%), Emerging Listings (over 60% or under one year old)
• USDC and USDT0 supply borrow liquidity across all spokes; tokenized equities and cash equivalents are collateral-only
• Next step is an ARFC Snapshot vote, followed by an AIP for final activation if that vote passes

• $15M incentive budget carried over from the V3.7 Monad deployment
• 60hrs weekend window when xStocks can’t be minted or redeemed
• 14.5% worst single-day drop observed for TSLAx in the sample

TokenLogic filed the ARFC post proposing what it calls a Monad Tokenized Equities Hub. The design follows the V3.7 Monad deployment approved earlier, whose Monad Foundation incentive budget now gets repurposed to seed V4 liquidity instead.

Three Spokes Split Core, Growth and Emerging Assets

The proposed asset list covers SPYx, QQQx, SGOVx, NVDAx, SMHx, TSLAx and EWYx alongside USDC and USDT0. SPYx and QQQx land in the Core spoke with 13% and 20% annualised volatility respectively; SGOVx is treated as cash equivalent.

Growth-spoke assets carry volatility between 25% and 60% and get more conservative parameters until they mature enough to graduate to Core. The Emerging Listings spoke is empty at launch and exists as a holding pen for new or highly volatile tickers before they’re assigned elsewhere.

Weekend Gap Risk Drives Collateral Factors

Because underlying equities only trade during market hours, xStock reference prices sit frozen for roughly 60 hours every weekend. The document is explicit about the consequence for borrowers.

“During this period, xStocks will be neither mintable nor redeemable.”

ARFC post, TokenLogic

Collateral factors are set using the 99th percentile of five years of Friday-to-Monday price gaps, not just daily volatility, so a maximally leveraged position should survive a gap worse than anything in that sample before bad debt appears.

Aave V4 also lets the DAO cut collateral factors dynamically while markets are closed; that would block new borrowing or withdrawals for affected positions but would not trigger liquidations outright.

$15M Incentive Budget Carries Over From V3.7

The Monad Foundation’s original $15M allocation, made under the V3.7 Monad proposal, will now fund liquidity growth for the V4 market instead. The post says the specific split and distribution timeline are still to be worked out as deployment progresses, which leaves LPs without a concrete emissions schedule for now.

Chainlink’s 24/5 oracle infrastructure will price xStocks during the initial rollout, stitching together regular, extended and overnight sessions into one continuous weekday feed. Chainlink Labs is separately developing a 24/7 feed to cover the weekend gap, but the post gives no date for when that ships.

What Changes for LPs and Borrowers

If this clears Snapshot and an AIP, Aave would segregate tokenized-equity collateral from stablecoin lending pools by volatility tier on Monad, rather than lumping all RWA collateral together.

Borrowers holding TSLAx or EWYx face materially lower collateral factors than SPYx or QQQx holders, reflecting the wider historical daily moves and Friday-Monday gaps in those names. Nothing in the post specifies the actual CF percentages beyond the “indicative” range shown in the proposal’s figures, so exact loan-to-value limits remain a Snapshot-stage detail.

The CCS read. Volatility-tiered spokes are a sensible answer to weekend gap risk, but shifting the $15M budget from V3.7 to V4 without a published distribution plan asks token holders to trust a number that was pledged for a different deployment. Whoever votes on the Snapshot should demand that schedule before, not after, activation.

TokenLogic says it will finalize asset configuration and risk parameters based on community feedback before pushing the proposal to an ARFC Snapshot vote; a passing Snapshot is required before an AIP can be submitted for on-chain activation.