Aave Labs Unveils Horizon RWA Initiative for Institutional DeFi Access
“Horizon bridges this gap by enabling institutions to access permissionless stablecoin liquidity while meeting issuer requirements,” the proposal states.
If approved, Horizon would launch first on Aave V3 before transitioning to Aave V4. The proposal includes a structured profit-sharing mechanism starting with 50% revenue to the Aave DAO in the first year, decreasing to 10% by year four.
The community is currently providing feedback on the proposal before a potential Snapshot vote and final governance decision.
Aave Labs recently proposed “Horizon,” a new initiative designed to integrate real-world assets (RWAs) into decentralized finance through a licensed instance of the Aave Protocol.
The proposal, submitted as a temperature check to the Aave community, would enable institutions to use tokenized money market funds as collateral to borrow stablecoins including USDC and Aave’s native GHO.
According to the proposal, tokenized U.S. Treasuries have already grown 408% year-over-year to reach $4 billion, with projections suggesting RWAs on blockchain networks could reach $16 trillion within the next decade.
- Defi
- RWA
