Aave Labs has recently unveiled an innovative initiative, Horizon, which targets the integration of real-world assets (RWAs) into the decentralized finance (DeFi) landscape. As reported by The Block on March 13th, the primary objective of this project is to establish a seamless connection between traditional finance and the blockchain ecosystem by fostering institutional engagement with DeFi. The inaugural offering from Horizon is poised to be a structured asset solution, enabling institutions to use tokenized money market funds as collateral. This strategic maneuver will facilitate access to stablecoin liquidity, with GHO, Aave’s proprietary stablecoin, acting as the central liquidity mechanism. Aave Labs anticipates that this initiative could not only bolster institutional adoption but also pave the way for a new revenue stream for the Aave Decentralized Autonomous Organization (DAO), enhancing its financial sustainability in the long term.
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