Nothing says "equity yield" like a DeFi DAO writing USDC checks so Nvidia can sit as collateral.
Aave flipped on incentives today for Coinbase Tokenized Stocks on Base. Mag7 onchain: AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc, TSLAc. Collateral only. You borrow USDC. The stocks themselves aren't borrowable. Eligible non-US wallets only.
Native supply APY on those equities? Zero. The "yield" is Merkl USDC from a DAO-approved budget — variable, not guaranteed, until the money runs out.
Token Autopsy: Coinbase issues the securities. Aave lends against them. AAVE holders fund the carrot that makes the TVL chart look alive. Nobody buys AAVE. Nobody burns AAVE. The dividend on your tokenized Nvidia is someone else's treasury.
Real stocks have cash flows. This market has a sponsorship deal with an expiration date.
When the Merkl faucet clicks empty, what's left — a lending product, or a press release?
https://x.com/aave/status/2110034817911804043