Why Attention Should Be Paid to Real-World Assets (RWA) Defi Tokens
The Decentralized Finance (DeFi) ecosystem is currently experiencing a significant growth, with a cumulative Total Value Locked (TVL) of $47 billion. This growth is being driven by a new class of assets known as Real World Assets (RWAs), which are making their way into the DeFi space. These assets are causing a stir in the industry, and DeFi analyst @DeFiIgnas has provided reasons as to why these assets will play a crucial role in the continued expansion of the DeFi industry.
RWAs are DeFi tokens that are linked to real-world assets or provide specific solutions or address specific needs that are linked to the real world. These types of assets are becoming increasingly popular in the DeFi ecosystem, with examples such as Centrifuge and Maple Finance.
DeFi Ignas shared statistics that showed four of the top 10 lending protocols based on 180-day cumulative interest fees paid by users are dominated by RWAs. This is a clear indication of the growing popularity of these assets and how they are becoming a more integral part of the DeFi ecosystem.
One of the key factors driving the growing popularity of RWAs is that lending on these platforms is undercollateralized and extends beyond the crypto world. This is a major fundamental that differentiates RWAs from other DeFi platforms like…
