Proposal: Add Support For Regulated Canadian Mortgages

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Matt_TokenFunder proposed integrating Canadian mortgages into Aave V2, aiming to expand Aave's market size by incorporating real-world credit market assets. The proposal, which includes introducing pools for tokenized Mortgage Investment Corporations (MICs) shares, received positive responses and is seen as a potential Proof of Concept (PoC) for integrating CeFi into DeFi products.

The discussion primarily revolved around the proposal by Matt_TokenFunder to integrate Canadian mortgages into Aave V2, a significant move towards incorporating more credit market assets into the Aave money market protocol. TokenFunder, a registered Exempt Market Dealer in Canada, is of the view that the future of DeFi lies in the integration of real-world credit market assets. The proposal suggests that this integration could significantly expand Aave's market size, given the vastness of the credit market compared to other financial markets.

TokenFunder's strong regulatory background and due-diligence practices were highlighted, along with the potential benefits of onboarding assets from Mortgage Investment Corporations (MICs). These corporations pool investors' funds across a wide array of mortgages, spreading risk and offering a stable and predictable source of income. Matt_TokenFunder also clarified misconceptions about MICs and proposed the introduction of pools for tokenized MIC shares on the Aave public market. This would allow Aave community members to lend against these shares, diversifying Aave’s overall lending risk.

The proposal was met with positive responses from community members like Zer0dot, who expressed enthusiasm for bridging the gap between crypto assets and real-world assets. ETJCLender found the proposal interesting and suggested an interview to further discuss it, which Matt_TokenFunder agreed to. TheoRochaix noted the proposal could be an interesting Proof of Concept (PoC) for integrating CeFi into DeFi products, but suggested it would need more attention after version 2. The discussion concluded with Matt_TokenFunder seeking feedback from the community on whether they would want lending exposure to real-world credit market assets, like Canadian residential mortgages.

Posted 3 years ago

Last reply 3 years ago

Summary updated 2 months ago

Last updated 09/12 13:53