The Aave DAO recently decided to focus its investments solely on AAVE tokens, temporarily halting exploration of other assets.
DAO's Decision and Its Significance
Aave Labs’ CEO, Stani Kulechov, announced that the decision was unanimous and adheres strictly to the DAO's operating principles. This means Aave will follow this path without pursuing any other agendas. By focusing on a single token, the team avoids the risks associated with portfolio diversification.
Horizon Project and Its Role
Recently, Aave Labs announced the launch of the Horizon initiative, aimed at integrating real-world assets into the DeFi sector. The Horizon project will help institutional players use tokenized funds as collateral for stablecoin loans, expanding access to DeFi liquidity.
RWA Sector Development
The real-world assets sector is experiencing significant growth, and many experts see vast potential in it. Major organizations like BlackRock and JPMorgan have already shown interest in the tokenization of real assets, underscoring this sector's increasing importance in the global economy.
Aave DAO's decision to focus on AAVE reflects the organization's strategic caution despite the growing attention to RWA development. The Horizon project can strengthen their position in the DeFi sector by bringing institutional assets onto the blockchain.
