The discussion primarily revolved around the proposal by Thespacecatjr to decentralize the RWA Market, which has grown to a total market size of 19M USDC, through a phased governance process¹. The proposal was met with enthusiasm, but also sparked a debate about the best approach to governance. Stani suggested that governance should be given directly to the on-chain Aave governance, which already includes snapshot voting². This sentiment was echoed by Eboado, who also raised questions about the frequency of proposals and the potential for improvements to the governance framework and smart contracts³.

The community showed support for the idea of contributing to the RWA market not only by adding collateral but also by supporting the governance process with expertise⁴. In response to the feedback, Thespacecatjr agreed to switch to direct on-chain governance and proposed to start the process of decentralizing the RWA Market by giving Aave community members direct control through on-chain Aave Governance V2 ^5,6,7.

However, concerns were raised by Alex_BertoG about the securitisation of RWA assets and debts, questioning the technical background of Aave DAO members to assess and understand the risks of these assets. He also raised questions about the risk assessment coverage, transparency on the underlying portfolio, the legal framework in case of default, and how to ensure the Centrifuge Credit Group is not biased⁸.

In conclusion, while the community is excited about the growth of the RWA market and the prospect of decentralization, there are still questions and concerns that need to be addressed, particularly around the technical and legal aspects of the proposed changes. The frequency of proposals and the potential for improvements to the governance framework and smart contracts were also topics of discussion. The community awaits further updates from Thespacecatjr on the proposed changes.