Aave Horizon

Aave Horizon is an institutional-focused deployment of the Aave protocol, designed as a separate market running on Aave V3.3 smart contracts. Its purpose is to bridge traditional finance and decentralized liquidity by enabling the use of tokenized real-world assets (RWAs)—such as U.S. Treasuries, short-term government bond funds, and corporate credit—as collateral for borrowing stablecoins on Ethereum.

The Horizon market introduces permissioned collateral onboarding: only whitelisted institutional investors can supply RWA tokens, while stablecoin liquidity (e.g. USDC, GHO, RLUSD) is provided permissionlessly by the broader DeFi community. To comply with the restrictions of RWA instruments, Horizon issues non-transferable aTokens, ensuring positions remain tied to qualified investors.