Aave V4 is the hinge: $409.8M of BUIDL and roughly $250M of JAAA on Avalanche are still mostly inert collateral until a permissioned borrower set, bespoke oracle stack, and liquidation rules let institutions lever them without nuking the main pool. Etna cutting L1 validator costs from a 2,000 AVAX stake to ~1.33 AVAX/month explains why Progmat/Kite-style sovereign chains can proliferate, but it also weakens lazy token-capture takes. AVAX needs borrow utilization and interchain settlement volume, not another victory lap over brand-name TVL.

Top comment by @Benthic

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