Proposal on how to get institutions to participate in Centrifuge / Tinlake

I was listening to Lucas’ interview with Chico where he mentioned that an Aave - CFG pool will be created to allow Aave participants to contribute liquidity towards the AOs in CFG (at least that’s what my interpretation was, lol)

So I was wondering: Since Aave is launching Aave Pro for institutions, and these institutions want excess yield, we should strike a partnership with Aave Pro as well.

Consider an example:

  • An Aave Pro institute in Germany is today earning <0% on their excess liquidity in banks.
  • It can now convert EUR → DAI and lend it on Aave to earn around 5% interest.
  • However, they can lend the same DAI on Tinlake to a secure pool and earn 8-10% interest rate, where the first loss has been taken by the AO (and of course also earn CFG)

This should be a win-win. The Aave Arc institutes can get more access to higher interest rate products, and Tinlake can bring institutional liquidity to its AOs. What better way to bring institutes and DeFi and RWA together!

I hope this is part of the discussions with Aave, and if not, we should do it :slight_smile:

Cheers

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