It’s really important to understand the revenue opportunity from this listing. From our perspective (and we could be completely wrong), holders may likely not want to borrow against PEPE because it isn’t really a long-term hold. We’ve seen numerous times that longer-tail assets do not generate a lot of revenue for Aave and therefore, a convincing revenue analysis needs to be conducted to assess the suitability of listing PEPE.
It also is very volatile, and the LT/LTV of the asset would be relatively low, which reduces the benefit from borrowing against it. It may also make it difficult to identify appropriate risk parameters for the asset. On first glance, we’re not very convinced about the opportunity from listing PEPE, but we’re happy to change our minds if proven wrong.