WHAT IS REAL WORLD ASSETS (RWA)?
Real World (non-virtual) | Asset (thing that has value)
As easy as you see, what about bringing them onchain? Sounds cool, but how?
via Tokenization
There were already several protocols brought people from Tradfi (Private Credits, U.S. Treasuries, Real Estates) into DeFi (Polymesh, Centrifuge, Pendle, β¦) as shown below.
A total of 52 tokenized RWA currently recorded in Coingecko and we could expect more to come. πTVL has been up only since it was introduced.
WHY BRINGING THEM ONCHAIN?
ποΈ Fractional Ownership
Picture this β you can own a fraction of a high-end real estate property or even a fraction of a priceless artwork. How? Tokenization! It slices real assets into digital tokens, enabling affordable ownership of premium assets.
π° Liquidity Redefined
Tired of waiting for the perfect buyer? Tokenization breathes new life into your assets, making them highly liquid. Trade them anytime, anywhere, thanks to blockchain platforms.
π Global Accessibility
Say farewell to geographical constraints. Tokenized real-world assets are open to investors from all corners of the world. Your investments know no borders.
π Transparency & Trust
Blockchain technology underpins this revolution. It guarantees transparency and security with every transaction. No more hidden dealings; everything is etched in the blockchain.
π Streamlined Process
Bid adieu to intermediaries and cumbersome paperwork. Tokenization simplifies the entire investment process, saving you valuable time and money.
Mini Introduction - rwa.xyz
RWA.XYZ is a webapp that defines the resources for tokenized real-world assets. Also an analytic dashboard for everyone - specialized for RWA.
REAL LIFE EXAMPLES
Private credits will provide liquidity for the protocols to earn fees or yields from the protocol in return (real yields). Some protocols would boost yield (APR%) by distributing their governance token to the liquidity providers (LP) in order to attract more LPs, π TVL.
As shown in figure above, the use cases are Consumer ($ 196.7M), Auto ($ 185.9M), Fintech ($ 105.1M), Carbon Project ($ 39.5M), Real Estate ($ 36.6M), Crypto Trading ($ 30.5M).
Imagine providing LP into a DeFi protocol, which is globally accessible. The economic activities to be expected would be mindblowing π€―!
Now you know why they are willing to provide millions of dollar into RWA protocols, sounds bullish right? Yes, definitely! π
-0xSmolRun (building DePortal)