Traditional decentralized lending protocols like Aave and Morpho require users to post volatile crypto assets like Bitcoin or Ethereum as collateral to borrow United States dollars

Overview Debates Related claims Topics

Tokenizing local emerging market fiat currencies allows users to deposit United States dollar stablecoins as collateral onchain to borrow local fiat currency

Approximately one-third of the total circulating supply of Ripio's Wrapped Fiat stablecoins is deposited into Morpho decentralized lending vaults

Exchanging Ripio's Brazilian real stablecoin (WBRL) for Argentine peso stablecoin (WARS) on Uniswap yields roughly 10% more Argentine pesos than traditional transfers via Wise

Swaps between Brazilian real stablecoins and United States dollar stablecoins on Uniswap predominantly consist of small transactions valued under $200

Argentine investors purchase Ripio's tokenized Brazilian real stablecoin, WBRL, to execute carry trades yielding 13% to 15% annually

Institutional-scale onchain foreign exchange execution requires decentralized order books or request-for-quote systems rather than automated market maker liquidity pools

Automated market makers are designed for onchain price discovery, making them suboptimal for foreign exchange trading that relies on external benchmark pricing

Aave Labs acquired Avon's technology to add fixed-rate lending capabilities to the Aave network, offering borrowers defined interest rate terms

Avon founder Prince Sinha and Ayush Kaul joined the Aave Labs engineering team following Aave Labs' acquisition of Avon's team and technology on November 6, 2026

Aave Labs acquired the team, protocols, onchain order book, domains, and related assets of fixed-rate lending developer Avon, announced on November 6, 2026

The financial terms of Aave Labs' acquisition of Avon's team and technology, announced on November 6, 2026, were not disclosed

Aave Labs had not set a launch date or identified a first market for its planned fixed-rate lending products as of November 6, 2026

Avon developed fixed- and floating-rate lending markets, an onchain order book, interest-rate pricing models, and risk isolation mechanisms for decentralized credit

Aave Labs said in its acquisition announcement that the Aave protocol held over $30 billion in deposits and over $12 billion in active loans at the time of the November 6, 2026 Avon acquisition announcement

Omar el-Ashaal joined Aave Labs as a business development associate following the November 6, 2026 acquisition of Avon

Aave executive Luigi D'Onorio DeMeo confirmed on November 6, 2026 that the joining Avon team members will work on developing onchain credit for Aave V4

Cc9f267dcClaimNews event

Coinbase announced that eligible US users can borrow USDC against PAX Gold (PAXG), a tokenized gold asset issued by Paxos, through the Morpho protocol on the Base blockchain

Cc9f267dcClaimNews event

Aave Labs acquired the team and technology behind Avon Tech, which runs fixed- and floating-rate lending protocols, to add fixed-rate lending to Aave's onchain lending network

New Market Trading CEO Frank Hepworth stated that bitcoin lending yields of 1% to 4% fail to justify derivative, counterparty, and smart contract risks.

Morpho lending vaults integrate real-world asset collateral, including a Sentora-curated vault that offers PYUSD loans against Figure's PRIME home-equity token.