1/ "The widespread use of stablecoins around the world is the best example of USD RWA"👍
From this perspective, the current income that can be obtained from DeFi products as a stablecoin of "USD RWA" is far lower than the 5% risk-free rate of return of directly buying and holding US Treasury bonds.
2/ This may also be one of the macro-level reasons why the market size of the entire stablecoin network has been declining for nearly four months.
Thinking further, it is no wonder that MakerDAO and Compound are actively bringing U.S. Treasury bonds to the chain:
The risk-free return on U.S. Treasury bonds is currently higher than the returns on most DeFi products.
3/ Therefore, by introducing U.S. Treasuries into DeFi through tokenization, the on-chain income source can be broadened, which is equivalent to using the income from real-world assets such as U.S. Treasuries to feed back the development of DeFi.
4/ However, such a high risk-free return will definitely absorb some liquidity from the existing crypto market funds in the early stage:
This is equivalent to providing a channel for on-chain funds to invest in traditional financial assets.
5/ So the booming development of RWA seems to be short-term bearish and long-term bullish for the crypto industry, especially the secondary market.