Aave Proposal Would Raise JAAA’s Reserve-Tier Loan-to-Value Limit to 87%

An Oct. 15 risk proposal would raise the reserve-tier loan-to-value limit for Janus Henderson Anemoy AAA CLO Fund (JAAA) shares on Aave’s Horizon market to 87%, allowing larger loans against the tokenized collateral.

The proposed limit is up from 81%. The proposal would also raise the liquidation threshold from 86% to 89%, while leaving a separate GHO borrowing mode’s 88% loan-to-value limit unchanged. A loan-to-value limit determines how much a borrower can take out relative to the value of pledged collateral. The changes remain proposals.

JAAA is a tokenized share class of the Janus Henderson Anemoy AAA CLO Fund. Its portfolio holds senior tranches of collateralized loan obligations, but the ratings of two holdings are undisclosed and may be below AAA. The fund’s name should therefore not be read as a rating for every holding.

The proposal examined 93 redemptions across all JAAA vaults, totaling $717.3 million, from Oct. 10, 2025, through Oct. 5, 2026. Of those, 91 were paid on the request date or the next business day. Redemption speed matters because approved liquidators can seize JAAA collateral and redeem it with the fund to recover value when a loan is liquidated. The figures cover all JAAA vaults, rather than Horizon alone.

Horizon launched on Ethereum in August 2025 as a separate, licensed instance initially forked from Aave V3.3. Eligible borrowers can pledge issuer-approved tokenized assets and borrow stablecoins including USDC, RLUSD and Aave’s dollar-pegged GHO. Supplying stablecoins to the market does not require approval from the asset issuers.

Aave has another example of tokenized-asset lending on Base. Its market for tokenized stock tokens accepts seven Coinbase tokens as collateral for USDC loans. Each token represents a certificate issued by Coinbase Onchain SPV Ltd. and backed by shares held in custody; it does not give the holder direct ownership of the underlying stock. Only eligible users outside the United States can access the market.

Aave V4 separately uses shared liquidity hubs connected to markets with their own collateral and risk rules. GHO has been identified as a possible future borrowing asset for the Base stock-token market, subject to governance and risk review.