Overview
Avalanche is a high-performance Layer 1 blockchain platform, with the Avalanche Foundation managing over $2B in treasury assets across a diversified portfolio. To manage these assets natively and efficiently, Avalanche integrates Aave, the leading decentralized liquidity protocol, into its core treasury operations.
Through Aave, Avalanche gains secure, 24/7 access to permissionless capital markets that support:
- Yield generation on idle assets
- Working capital access without asset liquidation
- Composable financial infrastructure for ecosystem funding
“Aave gives us the flexibility to earn yield on idle assets, borrow against blue-chip holdings, and deploy liquidity in a safe and frictionless way.”
— Avalanche Foundation Treasury Team
Onchain Liquidity Access
To maintain long-term exposure to strategic assets, Avalanche Foundation borrows stablecoins directly from Aave markets using these tokens as collateral.
This strategy enables operational agility without sacrificing long-term portfolio alignment.
- Ecosystem funding and incentive programs
- Temporary liquidity runway for capital deployment
- Real-time execution without counterparty approval
Why Aave:
- Instant, 24/7 access to stablecoin liquidity without delays or manual intervention
- Transparent collateralization and risk models
- Zero reliance on centralized OTC or lending desks
Native Yield Generation on Idle Treasury Assets
Idle treasury assets are deployed into Aave’s supply-side markets to generate sustainable, protocol-native yield, keeping capital productive while preserving custody and auditability.
Why Aave:
- Transparent rates that adjust based on market demand
- Deep liquidity for scalable allocation
- Proven security track record and compatibility for institutional custody frameworks
This ensures capital remains productive while preserving the security, control, and auditability required of an institutional treasury.
Aave as a Reference Rate for DeFi
Aave’s stablecoin markets have emerged as a reference rate for onchain capital markets. With deep liquidity across major stablecoins, Aave's interest rates represent a real-time, algorithmically priced cost of capital for DeFi.
Why Aave:
- Inverse correlation to TradFi yields, offering diversified rate exposure
- Consistent outperformance of treasury yields over the past 18 months
- Deep, scalable markets that support institutional-sized capital efficiently
- Aave markets function as a system-wide pricing primitive, influencing DAO yield programs, structured products, and DeFi lending across chains.
“Aave’s stablecoin yields have become the baseline reference rate in DeFi—transparent, programmable, and trusted across the ecosystem.”*
— Avalanche Foundation Treasury Team