RWA with OOTWY (Real-World Asset with Out of this World Yield)

Spool
Spool
Published in
5 min readMay 15, 2024

Real-world asset tokenization is changing the face of on-chain yield. Investors now have unprecedented access to a wide range of investment opportunities previously reserved for traditional financial (TradFi).

Using digital tokens to represent physical assets enables fractional ownership, increases asset liquidity, and enables more efficient trading environments. Real-world assets (RWAs) are assets that exist in the physical world, such as real estate, commodities, or fine art, and are represented on a blockchain using digital tokens. As this trend continues to gain momentum, investors continually seek innovative ways to generate yield from emerging tokenized asset classes.

Spool’s turnkey vaults empower users to create and participate in yield-generating strategies tailored to their specific needs and risk preferences. They’re a powerful solution for investors seeking broad exposure to the evolving landscape of tokenized real-world assets.

Spool is the Optimal Solution for Real-World Asset Strategies

One of Spool’s key advantages is its unparalleled capital efficiency. Many real-world assets, such as BlackRock’s BUIDL fund, are deployed on the Ethereum mainnet, which has comparatively high gas fees that can be a significant entry barrier for investors. Spool bundles transactions across vaults, significantly lowering gas costs per transaction and benefiting investors seeking exposure to real-world asset strategies.

Security is boring until it isn’t

Spool is designed with security, flexibility, and compliance at its core. The platform’s robust smart contract architecture has undergone rigorous audits, and its substantial $1.5m bug bounty program further strengthens its security. A user-friendly interface and intuitive design make it easy for investors to navigate the complexities of tokenized real-world asset investing.

Spool’s commitment to regulatory adherence ensures compliance with regulatory frameworks such as MiCA and MiFID II. Compliance with these regulations makes Spool an ideal platform for investors seeking exposure to regulated tokenized securities and more established markets. For example, real estate markets benefit from fractional ownership and a broader investment base, especially for commercial properties. Tokenized real estate assets can be easily integrated into Spool vault strategies, allowing investors to earn yield while benefiting from their long-term appreciation potential.

From Uranium to Trading Cards — Tokenize and Trade Almost Anything!

Tokenizing non-securities is relatively straightforward and offers on-chain investors exposure to otherwise uninvestable assets. Collectibles, such as trading cards and memorabilia, are prime candidates for tokenization. They often have passionate communities of engaged enthusiasts. Fractionalizing the underlying asset offers more investors the opportunity to gain exposure to this asset class and delivers existing communities deeper liquidity for their collectibles.

Similarly, commodities like uranium, lithium, and other regulated commodities that are not securities can be tokenized and integrated into Spool’s yield-generating strategies. Demand for these commodities continues to grow, driven by factors such as the clean energy transition. The tokenization of these commodities creates new avenues for startup capital for industry operators. Simultaneously, investors can benefit from the appreciation of these assets while generating additional yield through Spool’s optimized vaults.

Spool empowers investors to create customized yield-generating strategies tailored to their specific needs and risk preferences by providing a secure, efficient, and compliant option for tokenized real-world assets. As the tokenization of real-world assets continues to gain momentum, Spool is well-positioned to become the go-to platform for investors seeking to unlock the full potential of these new financial instruments.

Make Crypto Green Again

ESG assets, such as voluntary carbon credits and other sustainability-focused investments, are another segment of the economy experiencing asset tokenization. Cryptocurrency has a negative public perception regarding its environmental impact due to the significant energy consumption of proof-of-work networks like Bitcoin. However, the rise of tokenized ESG assets presents an opportunity to align the crypto industry with more environmentally conscious principles and practices.

As more investors prioritize environmental and social impact, tokenized sustainability assets can provide a way to align values with financial returns. Investors can earn economic and social rewards by creating Spool vaults that combine these tokenized ESG assets with yield-generating DeFi protocols.

By creating Spool vaults dedicated to these tokenized non-securities, investors can participate in the upside potential of these unique assets while earning efficient and secure yields.

Regulated Tokenized Securities and Established Markets

Tokenized public debt, such as US Treasuries, is another area where Spool’s yield-generating strategies can provide value. By combining these low-risk, stable assets with DeFi protocols that optimize for yield, investors can enhance their returns without taking on excessive risk.

The emerging market of tokenized private credit presents an exciting opportunity for investors. As more private debt issuances become tokenized, investors gain access to a broader range of credit opportunities, from corporate bonds to peer-to-peer lending, which is already familiar to many DeFi users. By creating Spool vaults that carefully curate and optimize these tokenized private credit assets, investors can earn attractive yields while diversifying their portfolios.

Conclusion

The tokenization of real-world assets heralds a new era of investment opportunities. Spool is at the forefront of this transition, offering a secure, user-friendly platform and advanced yield-generating strategies. Spool empowers investors to make the most of their tokenized assets, whether retail-accessible non-securities or regulated tokenized securities. As more assets come on chain, Spool’s innovative approach to yield generation becomes increasingly valuable for portfolio diversification.

By leveraging Spool’s expertise and technology, investors unlock the full potential of their tokenized real-world assets, earning yield and growing their wealth in ways never before possible.

About Spool

Spool is a decentralized, non-custodial DeFi platform that empowers investors with maximum yield through auto-compounding, risk-adjusted strategies. By aggregating yield opportunities across multiple DeFi platforms, Spool enables users to earn optimized returns on their assets effortlessly.

With Spool, investors can create their own yield strategies and earn fees when others invest. Spool’s mission is to make DeFi accessible and profitable for everyone, regardless of their level of expertise. Start exploring Spool’s strategies today and take control of your financial future

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