How do DeFi protocols adopt real-world assets ("RWA") - An overview of MakerDAO's RWA layouts
TLDR In the RWA sector, the first explosion is from fixed-income products, driven by the treasury management demands of DAOs and Web3 companies. The top TVL rankings in the RWA sector are dominated by tokenized U.S. Treasury Bill projects. By incorporating RWA, DAOs can retain high liquidity for their assets while generating stable income with low correlation to on-chain activities, thus achieving better quality returns and risk diversification. The governance and operations of DAOs are not necessarily more efficient than traditional corporate structures. MakerDAO incurs high costs to purchase U.S. Treasury Bill ETFs through a complex trust structure, which is not feasible for most other DAOs and Web3 companies. In comparison, it is more efficient and feasible for DAOs to purchase tokenized RWAs on-chain through professional/compliant asset issuers. RWA coming into mainstream crypto Against the backdrop of the crypto winter and rising US interest rates, the new wave of DeFi innovation ...