CONNECT WITH US
Web3 & Blockchain

Web3 & Blockchain

SpaceX’s $194 billion share unlock exposes a major risk in Aave’s tokenized stock ambitions

CryptoSlate logo

Published on

Add as a preferred source on Google
SpaceX’s $194 billion share unlock exposes a major risk in Aave’s tokenized stock ambitions

Aave wants to accept SpaceX shares as loan collateral, but an accelerated unlock and thin on-chain liquidity complicate its risk calculations.

About 1.3 billion SpaceX shares become eligible for sale on Oct. 22, worth roughly $194.3 billion at the Oct. 20 close of $147.89.

A week earlier, Aave Labs proposed accepting tokenized SpaceX shares (SPCXc) as collateral on its V4 Equities Hub on Base. Aave's risk adviser LlamaRisk published its assessment of the listing on Oct. 15 with the largest unlock dated for early November, and SpaceX's earnings date pulled that release forward by about two weeks.

LlamaRisk modeled the earnings-linked release for Nov. 5 to Nov. 9 using third-party earnings estimates.

SpaceX confirmed on Oct. 16 that it would report on Oct. 20, when it posted about $14.6 billion in revenue and $4.4 billion in net income, which places the release on Oct. 22.

In the public thread reviewed as of Oct. 20, the assessment carried the November window, and the original assessment stood as the latest entry.

A smaller release of about 328.4 million shares, worth $48.6 billion at the same price, arrives Oct. 26. The Oct. 22 tranche is 28% of a roughly 4.691 billion-share lockup pool, which adds about 45% to the 2.9043 billion shares already tradable. LlamaRisk's calendar had the larger tranche arriving later and calculated a 40.2% float expansion.

LlamaRisk recommends a 55% collateral factor for SPCXc, below the 65% on Tesla and Meta, the most conservative equities Aave supports.

5% maximum liquidation bonus, a 1,000 basis point collateral risk premium, USDC as the borrowable asset, and a cap of 37,000 SPCXc.


Source link
Related Topics:Web3 & Blockchain

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.