Risk oracles, automated systems that monitor and manage protocol risk onchain, are set to become a cornerstone of onchain finance.However, their reliability and design philosophy determine whether they actually reduce or introduce risk.When risk oracles fail to operate throughout volatile conditions, depend on poor-quality data, or lack transparency, they become a point of failure. Onchain finance needs infrastructure that’s neutral, transparent, and battle-tested under extreme conditions.That’s where the C ...

DeFi Adoption & Institutional Investment - Institutions hold the majority of capital, limiting retail capital's ability to significantly scale DeFi [1][6] - Institutional adoption is crucial for DeFi to reach tens of trillions in value, requiring clear, simple adoption methods and compelling reasons [2][6] - Institutions are poised to inject substantial capital into crypto and DeFi, potentially 10x the space [3] - DeFi's transparency offers superior risk management compared to traditional systems, attracting retail, fintech, and institutional communities with better yield [6][7] - Institutions are distributors of DeFi, and traditional financial rails will be replaced by blockchain rails, stablecoins, and embedded DeFi [11][12] A Horizon & Tokenized Assets - A Horizon enables institutions to tokenize real-world assets and borrow stablecoins [13] - A Horizon facilitates the use of tokenized assets as collateral (money market funds, tokenized credit, equities, ETFs, debts) to borrow stablecoins [15] - Tokenizing assets alone isn't innovative; utility comes from using them as collateral, enabling exchange, and fostering a developer ecosystem for structured products [16] - A Horizon's growth reached $500 million in markets within two months of launch, focusing on off-chain liquid assets [29] Risk Management & Oracles - Chainlink and A are essential for financial institutions, with A setting contract standards and Chainlink providing data inputs and compliance oracles [20] - DeFi separates financial institutions into specialized groups with high standards for contracts and oracles, ensuring transparency and reliability [21][22] - Oracles are viewed as strategies for pricing assets, considering factors like price source scarcity and implementing protection measures [23][24] - Chainlink is enabling institutions to move capital on-chain for tokenized asset purchases and DeFi protocol participation [31]

.@Securitize, the tokenization platform with $4B+ in tokenized securities, has adopted the Chainlink data standard to price Securitize tokenized funds used as collateral on @Aave Horizon.https://t.co/iSkdt3Orz0The integration starts with pricing @vaneck_us’s first tokenized fund, VBILL, which is backed by short-term U.S. Treasuries and issued on Securitize. VanEck is a global asset manager with $130B+ AUM.Aave Horizon is powered by Chainlink NAVLink, with risk controls provided by LlamaGuard NAV, providing ...

Core Insights - Aave's Horizon market is enhancing its platform for real-world assets (RWAs) through the integration of Securitize and VanEck's tokenized treasury fund, VBILL, which signifies a significant step in merging traditional finance with decentralized finance (DeFi) [1][4] Group 1: Market Growth and Size - Since its launch in August, Aave's Horizon has rapidly become the fastest-growing venue for RWAs in DeFi, achieving a total market size exceeding $460 million [2] - The platform aims to comply with institutional standards while ensuring the transparency and liquidity characteristic of on-chain finance [2] Group 2: Integration and Technology - With the addition of VBILL as eligible collateral, institutions can now borrow stablecoins against their VBILL holdings, enhancing liquidity options [3] - The integration utilizes Chainlink's NAVLink and LlamaGuard NAV oracles to provide verified, risk-adjusted net asset value (NAV) data, ensuring secure pricing [3] - Securitize plans to implement its Trusted Single Source Oracle (TSSO) system in the future, which will further enhance the verification process for on-chain fund valuations [3] Group 3: Industry Impact - The integration of VanEck's VBILL with Aave and Chainlink is expected to broaden access to trusted forms of on-chain collateral, illustrating the fluid movement of regulated assets within the DeFi space [4]

Aave Horizon, the institutional lending and borrowing market for tokenized assets from @Aave, is adopting Chainlink's Automated Compliance Engine (ACE).Chainlink ACE serves as a modular compliance layer that verifies policy and identity data at the transaction level, allowing Horizon to enforce issuer and regulatory standards onchain.With Chainlink ACE, Horizon is able to support secure and compliant-focused tokenized asset markets, creating new opportunities for regulated institutions to participate in DeF ...