Aave is considering deploying a V4 lending market on Monad for tokenized equities and cash-equivalent assets, with a dedicated liquidity hub and three collateral spokes organized by risk. Submitted to the Aave governance forum on September 28, the proposal would initially include tokenized versions of the S&P 500 ETF, Nasdaq-100 ETF, U.S. Treasury bills, Nvidia, semiconductor stocks, Tesla and an emerging-market ETF, alongside USDC and USDT0. SPYx, QQQx and SGOVx would form the Core Assets Spoke, while TSLAx, EWYx, NVDAx and SMHx would make up the Growth Assets Spoke. The Emerging Listings Spoke would have no assets at launch. USDC and USDT0 would be borrowable across all three spokes, while the tokenized assets would serve as collateral. Risk classification would initially use one-year realized volatility: below 25% for Core, 25% to 60% for Growth, and less than one year of history or above 60% for Emerging Listings. Assets could later move between spokes as their trading history, size and volatility change. The proposal follows Aave’s September 25 launch of an Equities Hub on Base, where eligible non-U.S. users can supply seven Coinbase-tokenized U.S. stocks to borrow USDC. It also comes as Aave develops a separate real-world-asset lending market on Avalanche, with Tether’s USAT planned as its initial dollar liquidity asset. The Monad design accounts for weekend trading gaps because xStocks cannot be minted or redeemed while underlying securities markets are closed. TokenLogic said collateral factors would incorporate annualized volatility and the 99th percentile of historical weekend downside gaps over five years, including the liquidator’s bonus. Chainlink’s 24/5 oracle infrastructure is proposed for initial xStock pricing, while Chainlink Labs is developing a possible 24/7 solution. A $15 million incentive allocation from the Monad Foundation could support the V4 deployment, although no distribution schedule has been set. The proposal remains under governance discussion and would need an ARFC Snapshot followed by an Aave Improvement Proposal before activation.