In an effort to diversify its treasury holdings and expand into the Real World Assets (RWA) sector, Aave is considering a proposal put forth by DigiFT¹. The proposal involves allocating a portion of Aave's treasury's stablecoin holdings, specifically 3M USDC, to low-risk U.S. treasury bills/notes via DigiFT, a Decentralized Exchange (DEX) compliant with Singapore's Securities and Futures Acts. DigiFT offers the DUST token, a fully regulatory-compliant U.S. T-bill token, backed 1:1 by single US T-note with different maturities. This move could potentially provide Aave with risk-free returns and liquidity.

DigiFT, established in 2020, is the first and only DEX enrolled within the Monetary Authority of Singapore (MAS) FinTech Regulatory Sandbox. It operates on the Ethereum blockchain and offers regulatory-compliant services for primary market origination and distribution, as well as secondary market trading of asset-backed tokens. These tokens are backed by digital assets and real-world assets like bonds, equities, and units in collective investment schemes. DigiFT's DEX provides liquidity through various channels, including the Automatic Market Maker (AMM) trading mechanism¹.

It's important to note that the information provided in the proposal is for informational purposes only and does not replace professional judgement. The information may be outdated after the specified date and no liability is accepted for any loss arising from the proposal or its contents. The past performances of the DEX are not indicative of future performance¹. The Aave community is open to further discussions on this proposal.