19h ago
The @aave Horizon RWA market has just surpassed $360M, bringing tokenized assets fully into DeFi.
It allows institutions to borrow stablecoins against RWAs while offering yield opportunities for suppliers.
We've built a new @Dune dashboard to track adoption in real time. Let's explore 🧵👇
1/ What is Horizon?
Aave Labs launched Horizon as a new market on Ethereum where institutions can borrow stablecoins against tokenized real-world assets (RWAs).
Built on v3.3, it bridges TradFi and DeFi, turning RWAs into productive, yield-generating non-borrowable collaterals.
@aave 2/ How does it work?
Qualified investors can deposit tokenized RWAs that meet issuer requirements.
Horizon then issues a non-transferable aToken representing the collateral.
Borrowers can then borrow stablecoins up to a predefined loan-to-value (LTV) ratio.
3/ Horizon currently supports collateral from @SuperstateInc (USTB and USCC), @centrifuge (JRTSY and JAAA), and @circle (USYC), with backing from a network of leading partners including @chainlink, @Securitize, @Ripple, @vaneck_us, and @WisdomTreePrime.
Stablecoin lenders can supply GHO, USDC, or RLUSD to earn yield from institutional borrowers.
4/ Aave, @chainlink, and @LlamaRisk have also unveiled LlamaGuard NAV, a dynamic risk oracle that safeguards Horizon's RWA market.
It sets adaptive NAV price bounds, validates data before publication, and triggers automated protections if anomalies occur.
This ensures loans remain overcollateralized with real-time pricing, aligning institutional-grade transparency and DeFi automation.
5/ LlamaGuard NAV is an enterprise-grade risk oracle built on Chainlink CRE, combining PoR, macro signals, and fair-value modeling with dynamic bounds that can automatically adjust limits or freeze markets onchain.
A design that institutions can audit and DAOs can trust.
@aave @chainlink @LlamaRisk 6/ Over $80M in stablecoins has already been borrowed on Horizon, with RLUSD leading the market at 61% of the total.
GHO has recently started to see more aggressive utilization, overtaking USDC with over $20M in borrowed liquidity, while USDC currently sits at $13M.
@Dune 7/ RLUSD's dominance is driven by its more attractive supply and borrow rates compared to USDC and GHO.
With a consistent borrow rate below 3%, RLUSD's supply rate exceeds 13% due to an ongoing incentive campaign on @merkl_xyz, despite having the lowest protocol APY.
@aave 8/ Horizon remains a specialized market with a smaller user base, but activity is consistent, showing a steady flow of both new and returning participants.
Even though the user base is small today, the TAM for RWA borrowing/lending is massive.
@Dune 9/ Weekday supply patterns show the busiest hours between 1 pm and 10 pm, hinting that most Horizon participants could be located across the US.
@aave 10/ Most addresses have supplied under $1k in liquidity, though a fair number hold larger positions.
In contrast, nearly all borrowed liquidity originates from users with over $1M supplied, reflecting the market's institutional scale.
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