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- Aave has unveiled an initiative to bring more institutions to the DeFi world
- Dubbed Horizon, Aave also wants to use the initiative to increase Aave DAO’s revenue
- Aave said Horizon will unite traditional finance and DeFi via real-world asset products
DeFi platform Aave has announced a new initiative to attract institutional investors to the DeFi world and boost Aave DAO’s revenue. Known as Horizon, it seeks to fill the gap between conventional and decentralized finance using tokenized real-world asset (RWA) products powered by the Aave platform. Aave Labs noted that tokenized RWAs improve an asset’s liquidity and “enables 24/7 programmable transactions,” making it easier for investors to conveniently open and close trades.
“An Aave-Licensed Instance for Institutions”
In a proposal, Aave Labs described Horizon as “an Aave-licensed instance for institutions.” It disclosed that the initiative will offer institutions products like tokenized money market funds and securities that can be used as collateral for loans.
Aave Labs announces Project Horizon, a new initiative focused on building institutional DeFi products.
Learn more:https://t.co/IPruxFuvrH
— Aave (@aave) March 13, 2025
Horizon will implement a governed token transfer and allow participants to have asset-level controls. According to the proposal, Aave DAO will receive a 50% revenue share in the first year “alongside strategic incentives.”
The DAO will oversee the initiative’s operations but Horizon will initially dictate how it responds to changing market conditions and caters to institutional needs. If the community supports the current proposal, it’ll move to the stakeholders before being presented for final voting.
The Aave Community Isn’t Excited
So far, the community isn’t happy with some sections of the proposal. Most of them disagree with the proposition to launch a Horizon token saying it’ll dilute the existing Aave token’s value.
Others said that “Aave itself isn’t fully empowered yet” making a new token unnecessary. Some said that Horizon would “significantly harm the reputation of the brand within the crypto” space.
The Aave community suggested that the revenue share needs to be increased and all revenue deposited to the DAO. The Horizon proposal comes five months after the United States president’s DeFi project World Liberty Financial announced an intention to work with Aave.
With the Aave community unhappy with sections of the proposal, it’s to be seen whether Aave Labs will review the proposal or discard it.
