The Aave Market for RWA is now open for business

3 min readDec 28, 2021
RWA market

The Aave Protocol is used by RWA Market to increase the liquidity of certain assets.

The Real World Asset (RWA) Market went live today. The RWA Market, built on Centrifuge and Aave, is the first diverse money market for real world assets on Aave, connecting DeFi to the infinite potential of the real world. It is launched with seven pools and is already accepting USDC deposits from liquidity providers.

What is the mechanism behind this? The Aave Protocol enables the creation of money markets where people can borrow tokens in exchange for collateral. Interest rates fluctuate depending on how much the market is used.

RWA market

END Labs RWA Market lets businesses to use crypto to finance their tokenized Real Estate Bridge Loans, Trade Receivables, Cargo & Freight Forwarding Invoices, Branded Inventory Financing, and Revenue Based Financing. It allows investors to diversify their portfolio by including assets that are uncorrelated and stable.

The world of TradFi is taking a step towards DeFi with RWA Market. RWA in the form of this first permissioned pool for Aave, one of the DeFi space’s trailblazers, is a big step towards Aave’s wider adoption in traditional finance. Aave users who could previously only lend against crypto native assets can now earn interest on stable, uncorrelated real-world collateral.

We are a forerunner in bridging the gap between RWAs and DeFi. We were the first to propose RWA as Maker collateral in April of this year. Issuers now have another source of liquidity with Aave and Maker Centrifuge, significantly diversifying their capital.

The RWA Market is a critical component not only for protocols like Aave, but also for DeFi as a whole. The Aave Companies’ mission is to break down barriers to entry and make DeFi accessible to everyone, and we’re pleased to be able to accomplish that with Centrifuge’s collateralization of real-world assets.

Founder and CEO of the Aave Companies, Stani Kulechov

Pools are created by issuers for their assets. These pools allow investors to purchase tokens by…