EL7.AI
CryptoMedium•9 November 2026•
5 min read

JAAA supply on Aave Horizon reached about $51.9 million on October 15

Key Facts

1JAAA supply on Horizon reached $51.9 million at a net asset value of $1.0522, across 11 addresses on October 15, 2026.
2LlamaRisk recommended raising the loan-to-value ratio from 81% to 87% and the liquidation threshold from 86% to 89%, while keeping the liquidation bonus at 5%.
37 positions carried $45 million in debt, including $34.5 million in RLUSD and $10.5 million in GHO.
4LlamaRisk estimated the maximum circular leverage would rise from 5.26 times to 7.69 times if the proposed loan-to-value ratio were raised.

JAAA supply in the Aave Horizon market reached about $51.9 million on October 15, 2026, at a net asset value of $1.0522 per unit, spread across 11 addresses, according to a LlamaRisk update published on the Aave governance forum. The update recommended raising the reserve’s loan-to-value ratio from 81% to 87% and increasing the liquidation threshold from 86% to 89%, while keeping the liquidation bonus at 5%. The proposal puts borrowing terms tied to the token at the center of the platform’s tokenized-asset market development. In its October update, Aave said LlamaRisk had already raised both ratios and that the community had approved listing HINC and mWIN on Horizon in two Snapshot votes. This places the change within the market’s expansion, alongside the adjustment to JAAA’s use limits as collateral.

LlamaRisk reported that 7 collateral positions in the reserve carried $45 million in debt. The debt comprised $34.5 million in RLUSD and $10.5 million in GHO. At the time of the update, these positions were borrowing an amount equivalent to 78.2% to 83.4% of their collateral value. The proposed increase in the loan-to-value ratio would expand the borrowing headroom against the token, while the higher liquidation threshold would raise the level at which positions become subject to liquidation. The proposal kept the liquidation bonus at 5%, with no change to that term.

LlamaRisk estimated that the maximum circular leverage on JAAA would rise from 5.26 times to 7.69 times if the proposed loan-to-value ratio were implemented. Circular leverage allows assets to be borrowed again after being supplied as collateral, then reused to increase borrowing, while the report said the supply cap limits the resulting exposure. Use of JAAA’s supply cap had reached 93.8% in an earlier LlamaRisk update published on September 16, 2026. In a data snapshot published on November 8, JAAA supply on Horizon stood at $46.03 million, compared with $14.84 million for USCC, $3.75 million for USTB and $1.25 million for VBILL; JAAA remained the largest among the other assets classified as collateral in the table. This later snapshot is from a different date than the October 15 figure in the reserve update.

Collateral valuation on Horizon is based on the net asset value reported by the issuer, according to Aave documentation. The documentation says Chainlink and LlamaRisk set upper and lower price bounds to validate asset price updates before they are published on-chain. This ties collateral value to the pricing mechanism for the tokenized asset, alongside the borrowing and liquidation rules that apply to positions. Eligibility to supply real-world asset collateral, meanwhile, is limited to qualified users on issuer allowlists. USDC, RLUSD and GHO liquidity pools remain available to liquidity suppliers without similar restrictions, according to the platform’s documentation.

Aave describes Horizon as a separate lending market for tokenized real-world assets, allowing institutions and eligible participants to supply these assets as collateral and borrow stablecoins without prior permission at the liquidity-pool level. The market launched on August 26, 2025, with JAAA and JTRSY from Centrifuge and USTB and USCC from Superstate accepted as collateral at launch. In February 2026, Aave said deposits had exceeded $440 million since Horizon’s launch. According to DefiLlama data cited by a Castle Labs report through November 8, 2026, the market was about $296 million, with RLUSD accounting for about 46.1%. These figures reflect different measures: the deposits reported in February cover the total raised since launch, while the November snapshot represents the market’s size on that date.

The JAAA fund invests in AAA-rated, floating-rate collateralized loan obligation (CLO) tranches, according to descriptions by LlamaRisk and Janus Henderson. LlamaRisk said the fund’s portfolio had regained diversification after outflows in the first quarter of 2026, with 35 positions across 22 managers in September. The update said the weighted average legal maturity of holdings had shortened over time, without giving a figure. On liquidity, JAAA funds processed 93 redemption requests worth a total of $717.3 million across all fund vaults between October 10, 2025 and October 5, 2026. 91 requests were paid on the day they were submitted or the next business day, while the other two were paid after two business days; these are historical redemption data and do not remove the link between collateral and asset value and valuation.

On governance, Aave announced on August 14, 2026 that new asset listings on Horizon would go through a feasibility study, risk assessment and technical assessment, followed by a binding Snapshot vote. The October update showed this process in action, reporting community approval for listing HINC and mWIN. Expansion of the collateral list thus combines listing decisions with adjustments to reserve parameters for each asset. The October update also said JAAA’s loan-to-value ratio had been raised to 87% and its liquidation threshold to 89%, from 81% and 86%, respectively. Eligibility to supply tokenized assets remains tied to issuer-defined allowlists.