[ARFC] Aave Treasury RWA Allocation

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Khan proposed a collaboration between Aave DAO and Centrifuge Prime to invest in Real World Assets (RWA), including a $1M proof of concept investment from Aave's treasury into a US T-Bill fund on Centrifuge. The proposal, which received overwhelming community support, also includes the creation of an RWA Facilitator and a legal conduit for Aave DAO, marking a significant step towards incorporating RWAs into Aave's operations and setting a precedent for other DeFi platforms.

The discussion primarily focused on a proposal by Khan for Aave DAO to collaborate with Centrifuge Prime to invest in Real World Assets (RWA). The proposal entailed the establishment of a legal structure, the development of RWA-specific management and governance processes, and the allocation of $1M from the Aave Treasury’s stablecoin holdings to a liquid US T-Bill fund on Centrifuge as a proof of concept investment1. This was viewed as a preliminary step towards a long-term goal for Aave to create and launch an RWA Facilitator that will back GHO with RWAs. The proposal also included the creation of a legal conduit for the Aave DAO, which would be ratified and deployed following an Aave token holder vote1.

Khan further proposed an initial pilot investment in the Anemoy Liquid Treasury Fund (LTF) once the legal structure is in place. The proposal included a $1M investment from the DAO's treasury into the Anemoy pool onchain, pending DAO approval. Centrifuge would collaborate with Aave for an initial test investment and a partial redemption to test the complete rails. The proposal also suggested a gradual deployment into Real World Assets (RWAs) and recommended maintaining RWA allocations at a fixed cap of the overall Aave balance sheet until the community gains more confidence1.

The proposal received widespread support from the community, with PennBlockchain endorsing the idea of integrating RWAs into DeFi and believing that Aave is well-positioned to incorporate them into their treasury management strategy3. After a period of intense discussion and clarification, Khan announced that voting for the proposal would be live on Snapshot and would conclude on Saturday, Sep 16th6. The proposal received overwhelming approval from the community (99.9% yae) and Khan announced that they would begin working with Skyward to draft the associated AIPs and share more formal next steps with the community7. This marks a significant step for Aave in leading the RWA conversation within DeFi.

Khan announced that the AIP (presumably, Action Initiation Protocol) for the proposal is now live, with thanks extended to Skyward Airlines and MarcZeller for their assistance. The Centrifuge team has started sourcing external counsel and preparing for the next steps. They plan to share their initial thoughts with the community in the following week8. This marks a significant milestone in Aave's journey towards incorporating RWAs into their operations, setting a precedent for other DeFi platforms.

Posted 3 months ago

Last reply 2 months ago

Summary updated 2 months ago

Last updated 05/12 01:14