Since the summer of 2019, the development of DeFi seems to have hit a bottleneck. All products are doing the same thing with the same funds: Lending, Borrowing, Swap. The development of DeFi is currently highly restricted by the overall market value of Crypto. How to break out of this framework? Will RWA be another solution?

#RWA (Real World Assets) generally refers to tangible assets that exist in the physical world that are brought on-chain. This includes the provision of capital market products on-chain, where digital securities are tokenized and provided to retail customers. This tokenization of real-world assets, including real estate and loans, provides new sources of income in DeFi, providing opportunities for higher returns and portfolio diversification.

For another example, Robert Leshner, founder of #Compound , has created a new company called "Superstate", which will create a short-term government bond fund that uses the Ethereum blockchain as a secondary record tool. Superstate's fund will invest in "ultra-short-term government securities", including U.S. Treasury bills, government agency securities, and other government-guaranteed instruments. The fund will rely on traditional Wall Street "transfer agents" to record the ownership records of fund holders, but will also record the ownership of certain fund shares on one or more blockchains, initially on the Ethereum blockchain, in the form of secondary blockchain records.

There are some examples of the use of RWA in DeFi, such as Maple Finance and Goldfinch, which use physical assets to generate income. In addition, new companies such as Superstate are developing short-term government bond funds that use the Ethereum blockchain as a secondary record-keeping tool, which will allow bond fund holders to transfer shares peer-to-peer through the blockchain. As DeFi's returns decrease, market participants are looking for higher and more sustainable returns and exploring new trends and opportunities such as liquidity pledges. In 2023, we see that real-world assets are attracting market attention, providing a different way to earn income, that is, by using real-world assets such as loans to earn income. .

Even with these developments, the use of physical assets on the blockchain still has its challenges. One of the main issues is the risk of default due to unsecured loans. In addition, despite these innovations, the development of DeFi is still affected by the overall market value of cryptocurrencies. Overall, RWA may be a way to achieve the development of DeFi, but it also brings new risks and challenges. However, this trend of integration has begun and will likely continue to develop in the coming years.

Here are some existing RWA projects

1. Real Estate Tokenization

  1. LABS Group ($LABS)

  2. ELYSIA ($ELFI)

  3. Tangible ($TNGBL)

  4. Props ($PRO)

  5. $THEO

  6. Matter Matter Matter

  7. HOME Coin Finance

2. Multi-asset tokenization

  1. Paxos ($PAXG)

  2. INX ($INX) 

  3. Curio ($CUR)

3. TradFi

  1. Polytrade ($TRADE) 

  2. Defactor ($FACTR) 

  3. Sologenic

  4. ConsolFreight

4. Layer-1

  1. Polymesh Network ($POLYX) 

  2. MANTRA ($OM)

  3. Realio Network ($RIO)

  4. Provenance ($HASH) 

  5. Intain

5. Climate / ReFi

  1. Climate DAO ($ CLIMATE)

  2. Regen Network ($REGEN) 

  3. Toucan Protocol ($BCT) 

  4. Flow Carbon  

VI. Agriculture

  1. Agro Global Token ($AGRO) 

  2. LandX Finance ($LNDX)

VII. Identity

  1. SpruceID

  2. Square

8. Private Equity

  1. Credefi Finance ($CREDIT)

  2. KKR

IX. Public Equity

  1. Backed Finance

10. Private Fixed Income

  1. TrueFi ($TRU)

  2. Maple Finance ($MPL) 

  3. FortunaFi

  4. Clearpool ($CPOOL)