Thank you for considering our proposal and for sharing your concerns.
We understand that Aave is in the process of establishing an entity for RWA allocation, which is a significant step towards diversification. Regarding the fee structure, we appreciate your point about our 50bps fee compared to the 35bps proposed by Centrifuge.
It seems important to consider the total cost, including any upfront fees and tokens. Please let us know if there’s any errors in the calcs, but for a $10 million deposit for one year, the total cost with Centrifuge, accounting for the upfront legal fees and AAVE token payment, would be approximately $130,000 (0.35% of $10m + $50k legal + $45k AAVE rewards), compared to $50,000 with Maple.
At a larger scale the costs approach parity. At about $50m, the Centrifuge cost with setup would be $252,000 (0.35%*$45m + 50,000 legal + 45,000 tokens) and Maple would be about 225,000 flat fee so not too far apart if the program scales above $45m size.
We understand your focus on competitive rates and fee structures. Ultimately the most robust approach may be to use multiple providers.
Valid point on the rates, AAVE V2 rates are presently higher, but with higher volatility. On average over the past 6 months they were lower (4.3%) so its difficult to predict if they won’t be lower in future, and a lower volatility hedge may be attractive from that perspective.