JAAA Leads Aave Horizon With $47 Million in Tokenized Collateral

JAAA has become the largest tokenized collateral asset on Aave Horizon, with about $47 million deposited in the latest figures, according to Aave Horizon’s reported supply data. On October 15, 2026, LlamaRisk proposed raising the token’s reserve-tier loan-to-value ratio from 81% to 87% and its liquidation threshold from 86% to 89%.

JAAA represents shares of the Janus Henderson Anemoy AAA CLO Fund. Aave Horizon launched in 2025 as a permissioned, licensed fork of Aave V3, rebuilt on Ethereum for qualified institutional participants. Approved participants can deposit tokenized real-world assets and borrow stablecoins against them.

The tokenized share class went live on-chain in mid-2025 through Centrifuge, a platform for bringing traditional assets onto blockchains. JAAA’s supply on Aave Horizon reached approximately $51.9 million as of October 15, 2026, before deposits moved within a $40 million to $50 million range in late October.

The reported $47 million deposit total has an active lending use. Much of the supply reportedly rests in reserve to back loans totaling $45 million. That use suggests market participants are borrowing stablecoins against JAAA rather than storing the token without an active purpose, providing an observable signal of collateral utilization.

What does the proposal change?

LlamaRisk’s proposal would make the collateral more capital-efficient, but it would also reduce borrowers’ headroom. According to LlamaRisk, the proposal reflects JAAA’s redemption history and liquidity metrics. The fund processed 93 redemptions totaling $717.3 million in the prior year.

• Reserve-tier loan-to-value ratio: 81% to 87%. At 81%, every $100 of JAAA supports up to $81 in stablecoin borrowing; at 87%, the same deposit supports up to $87.
• Liquidation threshold: 86% to 89%. Once a borrower’s debt crosses that share of collateral value, the position can be liquidated.

The proposed 89% threshold would leave a narrower gap between normal operations and a forced sale. A borrower at 87% LTV would also have less room for collateral losses than one at 81%, so added borrowing capacity comes with thinner cushions.

How large is JAAA?

JAAA’s total assets under management ranged between $585 million and $687 million in 2026, down from peaks above $1 billion. The roughly $47 million on Aave Horizon represents a modest slice of that fund. It is nevertheless large enough to make JAAA the platform’s leading tokenized collateral.

The divergence matters operationally. The fund has shrunk while its tokenized share class has taken on a specific job: serving as borrowable collateral, even as overall assets under management have pulled back from earlier highs. The on-chain footprint has therefore expanded in function as well as relative market position.

What changes for institutional DeFi?

If approved, the higher LTV and liquidation threshold would make JAAA more capital-efficient. The change could attract more deposits or encourage existing holders to borrow more against positions they already hold. Operationally, that means more stablecoin liquidity against tokenized fund shares, paired with less room for collateral deterioration.

The fund’s redemption record supports the case for looser terms, but past liquidity does not guarantee future liquidity. Aave Horizon would therefore change its collateral rules on the strength of observed redemptions and liquidity metrics, not a promise that the same conditions will persist.

JAAA’s position as the largest collateral type gives its health more weight in Aave Horizon’s overall risk picture. The swing between $40 million and $50 million in late October shows how quickly balances can move. That makes the fund’s liquidity, redemptions and risk parameters central to the market’s risk picture even though the platform balance remains modest against the fund’s broader AUM.

If LlamaRisk’s proposal passes, Aave Horizon will shift from an 81% reserve-tier LTV and 86% liquidation threshold to 87% and 89%. Until that market-structure change takes effect, the current limits will govern how much stablecoin debt the platform’s largest tokenized collateral can support.