[TEMP CHECK] Aave Treasury Proposal for RWA Allocation
Vote Result: ABSTAIN
Rationale
We are of the firm belief that RWAs are extremely important and will help diversify the treasury while earning real returns. They are the future of how Aave’s treasury is allocated. Moreover, Aave can earn significant returns at the moment on its treasury which is mostly allocated in USDC, and this initial investment will allow the community to understand and get comfortable with RWAs and their nuances. However, we have concerns around the legal structure and timing. Implementing this strategy so quickly may be rushing things and the ramifications of setting up a legal structure and an Ultimate Beneficial Owner (UBO) need to be better understood by the community. Moreso, we encourage an RFP process as suggested by @hazbobo. This process, to hear proposals and encourage deeper discussion around the assets Aave is investing in, the differences in maturities, risks, custody, etc., is necessary. It is important that there’s a more rigorous process applied to how Aave invests and more detailed discussion would be a good first step. It will also make this process more competitive for Aave and allows other RWA providers to pitch to the DAO as well.
We are choosing to ABSTAIN on this TEMP CHECK since while we are in favour of RWA investments, we have concerns around community education and buy-in on timing and legal structure. Having spoken to the Centrifuge team, who have been extremely collaborative, prompt, and detailed in their responses, we want to give them a chance to make the ARFC a multi-stage proposal where the first step establishes the legal infrastructure and the investment of the stablecoins themselves only come after another proposal and approval process.