Since launching in August, @aave Horizon has quickly risen to #1 venue for the composable use of Real-World Assets attracting over $550M. Our report covers key trends: the growing demand for borrowing against RWAs and the new risk infrastructure supporting institutional adoption. Market Trends Supply growth has been driven primarily by high-yield assets, such as @SuperstateInc's USCC, with close to 50% of its total supply being used as collateral on Horizon. Although recent basis compression, resulting from a significant shift in market sentiment, has reduced yields from approximately 10% to 5%, these assets continue to be the primary collateral used. The data suggests users, by borrowing stablecoins against RWAs, are profiting from the spread between asset yields and borrow costs. This activity has pushed the blended utilization rate to 53.6%. Infrastructure Evolution From day one, reliance on single self-reported offchain data points for NAV has been identified as a key risk vector. To address this, LlamaRisk has deployed LlamaGuard NAV in collaboration with @chainlink and @aave Labs. This system uses Adaptive Bounds to validate offchain pricing data against dynamic thresholds. If a price update falls outside expected market conditions, it is rejected before reaching the Horizon, protecting users from faulty liquidations. The Asset Landscape The ecosystem continues to diversify with support for @Ripple's RLUSD, @vaneck_us's VBILL @anemoycapital JTRSY/JAAA, @SuperstateInc USCC/USTB @Circle USDC/USYC. Significant growth potential is foreseen from credit strategies like @anemoycapital's JAAA, which provides exposure to AAA CLOs. We’re also in communication with several more reputable issuers, such as @Securitize, to expand integrations. Although lower-yielding assets, such as Money Market funds and T-Bill-backed assets, have seen modest usage within Aave Horizon, we expect new use cases to emerge in the coming months.

@aave Horizon TVL ended last week at $551.96M. Stablecoin supply held at $296M, while net borrows fell to $159M as users repaid USCC-backed positions after yield compression. RWA supply slipped to $255.9M, driven entirely by lower USCC supply. Read the full update ↓

1/ The recent vote to increase @yieldbasis credit line from 300m to 1B is putting in the spotlight YB's influence on crvUSD stability. Here's what we're doing to address this question and help YB scale safely while preserving the stability of crvUSD 👇