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Tenor OTC Introduces AERO as Collateral for Fixed-Rate Loans on Base
Tenor OTC, the lending division of Tenor Finance, has announced the acceptance of AERO as collateral for fixed-rate borrowing on Base. This development allows holders of Aerodrome's governance and rewards token to leverage their assets without the need to sell them. The platform, which launched on July 21, 2026, has been expanding its collateral offerings, with AERO being the latest addition.
Unlike traditional decentralized finance (DeFi) lending pools, Tenor OTC facilitates direct negotiations between borrowers and lenders, enabling bespoke agreements. Powered by Morpho Midnight, the platform supports custom collateral types, allowing users to define their own loan terms and collateral assets. This flexibility is particularly beneficial for AERO holders, as it enables them to access capital while maintaining their stake in the Aerodrome ecosystem, the leading decentralized exchange on Base.
Tenor OTC is designed with features that cater to an institutional audience, including auto-renewal for loans, collateral-on-fill for borrow orders, early exit options, and gated offers. These functionalities enhance the user experience by simplifying loan management and providing greater control over borrowing conditions. Tenor Finance has previously secured $2.5 million in a pre-seed funding round to develop this infrastructure and has partnered with Armitage and Clearstar to improve market quotes on the platform.
Source: KLEA News