Real World Asset (RWA) yield refers to the financial returns generated from tangible or traditional financial assets that are tokenized and utilized within decentralized finance. This involves bringing assets like real estate, commodities, or debt instruments onto a blockchain, allowing them to be used as collateral or to generate interest in DeFi protocols. The yield itself originates from the underlying off-chain asset’s cash flows or appreciation. It connects traditional finance with the efficiency of blockchain.
Context
News often discusses RWA yield as a significant trend in DeFi, aiming to bridge the gap between traditional finance and decentralized protocols. The securitization and tokenization of real-world assets offer new opportunities for capital efficiency and broader investor access. Critical discussions address the legal complexities of asset ownership, regulatory compliance, and the reliability of off-chain asset valuation and management.
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