SS #26 - Aave’s RWA Market Horizon Launches

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Good Morning.

Welcome to our 26th edition of the StableScope. A new 2x a week, stablecoin-focused newsletter from Launchy. Given the growth of the vertical, there's an increasing demand for more recurring reporting and curation on stablecoins.

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In Today's Edition:

• Headline: Aave’s RWA Market Horizon Launches

• Quick Bites: Tether to Bring Native Stablecoin Rail to Bitcoin With USDT Rollout on RGB

• Yield of the Week: 116.36% APY on Drift

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HEADLINE

Aave’s RWA Market Horizon Launches

State of play: Aave Labs has launched Horizon, an institutional platform that allows borrowing of stablecoins against tokenized RWAs like U.S. Treasurys and CLOs.

• Horizon is built on a permissioned version of Aave V3, designed to meet institutional compliance while preserving DeFi composability in stablecoin markets.

• The platform enables institutions to post tokenized securities as collateral and borrow stablecoins such as USDC, RLUSD, and GHO with predictable liquidity.

• Launch partners include Centrifuge, Superstate, Circle, VanEck, WisdomTree, and Chainlink, which provides real-time onchain valuations and transparency tools.

What’s Next: Horizon is set to attract early adoption from funds and asset managers, with future expansion into private markets and regulated finance. Its success will hinge on scaling partnerships and navigating regulatory oversight.

Why it Matters: By enabling tokenized RWAs to serve as real-time collateral, Horizon deepens stablecoin markets and brings institutional-grade liquidity to DeFi. It bridges the gap between traditional finance and onchain infrastructure.

Our Take: Horizon is a pivotal step for institutional DeFi, offering compliance and composability in one platform. If Aave can address regulatory and adoption challenges, it could cement RWAs as a core driver of DeFi growth.

QUICK BITES

• M0 raises $40M.

• Rain raises $58M.

• Tether to bring native stablecoin rail to Bitcoin with USDT rollout on RGB.

• Former China central bank chief challenges need for stablecoin adoption.

• Finastra taps Circle to bring USDC settlement to $5T global cross-border payments.

YIELD OF THE WEEK

Euler Earn USDC: 13.7% APY

• Euler Earn vaults manage a single asset and allocate deposits across multiple ERC-4626 strategies, primarily lending vaults but with flexibility to support others.

• The system is permissionless, non-custodial, and immutable, with safety features such as timelocks and guardian veto powers for risk-sensitive actions.

• Deposits are diversified across up to 30 strategies, and users receive a single token representing their share, enabling simple, on-chain withdrawals.

RateX sHYUSD: 23.53% APY

• In RateX, PT is created by combining ST and YT positions, allowing users to earn a fixed yield if held to maturity. PT positions can also be exited early by splitting into ST and YT, then unwinding YT through the RateX AMM.

• sHYUSD is a tokenized, yield-bearing version of hyUSD that represents deposits in the Stability Pool and provides holders with rewards tied to Hylo’s TVL.

• Hylo runs a points program where users earn XP by holding different products within the ecosystem.

Drift Hyper JLP: 116.36% APY

• Drift Hyper JLP replaces legacy exposures with yield-bearing assets like HYPE, cbBTC, and dSOL, aiming to maximize returns while minimizing market risk.

• The vault features a 1-day soft lock, with withdrawals available after the period ends, though profits during redemption are not distributed.

• Fees include a 15% performance fee on profits and a 2% annual management fee, applied monthly or upon withdrawal.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.