It’s certainly true that investors in crypto had a twisted understanding of the credit trilemma and faced a rude awakening in Q4 of last year, where the high yield, short duration, and super-high credit risk investments went bust.
Given that Aave’s likely initial use-case for RWA financing will be using any excess stablecoin capital on its balance sheet to earn revenues, low credit risk and short duration are just about the only things that make sense [maybe also highly secure commercial paper]. This is basically the strategy that Maker is employing.
The question to us certainly seems to be how we can increase the adoption of GHO as a currency through RWA financing operations. Without a strong partner in figuring that out, all RWA financing will place a strong sell pressure on the peg that requires careful liquidity monitoring.