“You can now instantly borrow $USDC against PAX Gold ($PAXG) on Coinbase,” the exchange announced.
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Gold-Market Hours Shape Loan Risk
Morpho’s market registry returns four $PAXG-collateral markets on Base that lend $USDC. All four have a 77% liquidation loan-to-value threshold: debt relative to the collateral’s value determines when a position becomes eligible for liquidation. That is a liquidation boundary, not a recommended borrowing level.
A listed variable-rate market uses an oracle contract with primary and backup price sources. Its current primary oracle draws on Chainlink’s gold-dollar reference feed on Base.
The pricing schedule matters for borrowers monitoring their collateral. Coinbase’s loan-health documentation says $PAXG prices update during gold-market hours, approximately 23 hours a day on weekdays, but not while those markets are closed, including weekends. Loan health therefore may not immediately reflect changes in gold prices.
Interest can also push a loan toward liquidation even without a fall in collateral value. Coinbase says variable borrowing rates depend on lending-market supply and demand, and interest accrues continuously. Borrowers can lower their loan-to-value ratio by repaying debt or adding collateral.
Coinbase lists asset-specific borrowing limits in the product and says collateral availability can differ between fixed- and variable-rate loans. It also states that loan proceeds cannot be used for trading on Coinbase.