Author @CryptoInvest
Date 2025.04.01
Simple Summay
This TEMP CHECK proposes the development of a new Aave module/market focusing on yield trading for fix income / bond, which could consolidate Aave position in money market and generate new fees .
Summary
The goal of this to Tempcheck is to know if Aave DAO would like to develop a new market for yield trading, fix income/ bonds.
This would allow Aave DAO to expand in a new market close to initial money market position. This proposition doesn’t affect Aave code and is a new layer and is similar to Pendle.
Aave Depositors could use this product.
(this module could be a building block for fix rates borrowing, fix rates borrowing was present in Aave v2/v3 ? but was depreciated due for security reason)
Motivation
Fix income/ bonds is a huge market. Pension funds typically hold 20-40% of Bonds in their portfolio.
Some Institutions/ people want to purchase fix yield income at a certain maturity.
Actually Aave could have a dominant position in money market / lending but is not positioned in fix rates products.
Specification
For $ markets USDC, USDT, GHO (USDA new name) and € EURC in a second time, develop a yield trading AMM (on Ethereum, Arbitrum and Base only).
TradFi typically propose quarterly expiration products (31 March, 30 June, 30 September, 31 December).
A pool of token is available for swaping maturity aUSDC , paUSDCjune, paUSDCseptember, paUSDCdecember, paUSDCmarch
Take a fee on trading yield of bonds and redeming at maturity
Typical fees structure is 70% LP 30%( Aave )
This could be an example of user interface for yield traders / bonds buyers.
(Curve has helped Spectra and Napier to Develop yield trading derivates AMM, Curve could help to developing such AMM, Aave DAO own a position in Curve )
Disclaimer
I own Aave, CRV, Pendle, Spectra, Napier and Pryzm positions.
I am trading yield derivates on Pendle, Spectra, Napier and Pryzm platforms.
Next steps
Discussion and Temp check is required.
If Temp check is validated, maybe @ACI could help me to write specifications