AAVE Horizon now supports JAAA as borrowable collateral for leveraged strategies up to 5x

Tokenized bonds backing DeFi loans sounds like something a finance bro hallucinated after reading too many whitepapers. But it’s real, and it’s scaling. AAVE’s Horizon market now supports JAAA, a tokenized representation of the Janus Henderson Anemoy AAA CLO fund, as borrowable collateral for leveraged stablecoin strategies.

Resolv Labs is the team putting this into production, deploying JAAA within its primeUSD vault framework with leverage capabilities up to 5x and a 30% vault cap. When Resolv first integrated JAAA as collateral on Horizon back in February 2026, the deployment involved up to $100M worth of the token, making it one of the largest real-world asset loop trades DeFi has ever seen.

What JAAA actually is, and why it matters

JAAA is a tokenized version of shares in the Janus Henderson Anemoy AAA CLO fund. CLOs, or collateralized loan obligations, are bundles of corporate loans sliced into tranches by risk level. The AAA tranche sits at the very top of the credit quality stack, meaning it gets paid first and carries the lowest default risk.

The underlying fund hit $1B in assets under management relatively quickly after launch. As of mid-July 2026, JAAA’s on-chain market reserve sits between roughly $17.35M and $17.9M.

AAVE Horizon launched around August 2025 specifically to serve as a bridge between institutional-grade assets and decentralized lending, designed with compliance guardrails that make traditional finance participants less nervous.

How the leveraged strategy works

Resolv Labs deposits JAAA into AAVE Horizon as collateral. Against that collateral, they borrow stablecoins. Those stablecoins then get deployed into Resolv’s primeUSD vaults, which generate yield. The yield from the vault exceeds the borrowing cost on Horizon, creating a positive carry trade. With leverage up to 5x, the spread between borrowing costs and vault yields gets amplified considerably. The 30% vault cap acts as a risk management lever, ensuring that no single strategy concentrates too much exposure in one place.

Resolv’s own USR stablecoin carried a total value locked of approximately $162M around the time of the original JAAA integration announcement.

What this means for investors

There are risks, naturally. Tokenized RWAs introduce dependencies on off-chain custodians, fund administrators, and legal structures that don’t exist with purely on-chain assets. If the Janus Henderson fund encountered issues, the on-chain token’s value could diverge from its intended peg in ways that are harder to resolve than a standard DeFi liquidation.

Liquidity is another consideration. With $17.35M to $17.9M in on-chain supply versus $1B in total fund AUM, the tokenized version is still a thin market. Large leveraged positions in a thin market create fragility, even when the underlying asset is rock-solid.

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