The Aave community is gearing up for an important “Treasury Proposal for RWA Allocation,” proposal that will be open for voting until August 25th. The essence of this proposal is to allocate a portion of the stablecoins held in the treasury for investment in low-risk real-world assets (RWA) through Centrifuge Prime. The expected outcomes are as follows: generating income from idle stablecoins, building a reliable RWA infrastructure for the long-term growth of the protocol, and developing internal competencies in DAO for this particular market.
The proposal describes Aave’s collaboration with Centrifuge Prime to provide the necessary legal and technical basis for Aave Finance Department’s RWA investments. This allocation is envisioned to gradually expand, with a target of reaching up to 20% of the stable currency holdings. Future expansion into other yields is also contemplated. The proposal highlights that about 65% of the Aave Ministry of Finance’s treasury bonds are held in USDC, which is approximately $15 mln.
However, the DAO has so far overlooked the 5% rate available through risk-free overnight US Treasury assets. An investment of $5 mln can generate an annual return of $250,000, indicating significant untapped potential. It also highlights the broader meaning of this initiative. Important factors are Aave’s historical commitment to RWA initiatives and the desire to diversify beyond crypto assets.
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