User VNX initiated a proposal to integrate VNX Gold (VNXAU), an ERC-20 token representing ownership of physical gold, into Aave v3 on the Ethereum mainnet¹. The proposal aims to bring traditional liquid assets into the DeFi space, potentially attracting more conservative and institutional capital to the Aave protocol. The VNXAU token, launched by a regulated Liechtenstein company, has a market capitalization of $394K and an average daily volume of $376K over the last 30 days. It is currently traded on several platforms including LBank, Emirex, Uniswap, and the VNX Platform¹.

However, MarcZeller raised concerns about the proposal, noting that Aave v3 is not yet live on the mainnet and expressing concerns about the current liquidity and volume of the VNXAU token². He suggested that setting up a Chainlink price feed might be challenging due to these issues. Furthermore, he questioned the suitability of the asset as collateral due to its liquidity and volume. He concluded by advising VNX to relaunch the proposal when the asset achieves more adoption and volume².

In conclusion, while the proposal to integrate VNXAU into Aave v3 has potential benefits, it faces challenges related to the asset's liquidity and volume. The community awaits further developments and potential relaunch of the proposal when the asset achieves more adoption and volume.