10 Best Crypto Real-world Assets (RWAs) Projects

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Real World Assets (RWAs) are seen as a leap forward for the crypto market as they help bridge DeFi and TradFi. Join us to find out the 10 best RWA projects to watch in 2024.

The integration of real-world assets (RWAs) into the blockchain is a breakthrough for the cryptocurrency sector. By tokenizing various assets such as gold, art, real estate, and capital pools, the blockchain can make finance more accessible and open up new possibilities for average investors.

This venture of tokenizing real-world assets is still in its infancy, yet there are numerous projects already underway. In this article, we delve into the top 10 realworld asset projects worth investing in in 2024.

Top 10 Prominent RWA Projects in 2024

  1. Centrifuge
  2. Maple Finance
  3. Goldfinch
  4. MakerDAO
  5. Chainlink
  6. Ondo Finance
  7. Credix
  8. Clearpool
  9. TrueFi
  10. Polymesh
Pink Brains RWAs

Deep Dives Into The 10 Best Real-world Asset Projects

1. Centrifuge

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First on our top list is Centrifuge, a lending protocol built on Polkadot with over $250 million in TVL that enables users, including small and medium-sized businesses, to leverage real-world assets as collateral to create crypto loans. A unique feature of Centrifuge is the use of NFTs to enhance the reliability and security of these real-world assets in lending.

Centrifuge connects real-world assets to DeFi. In the first place, it provides infrastructure for other dApps to integrate these real-world assets easily. Recently, Centrifuge launched a product called Prime, designed to bring real-world credit markets to institutions, protocols, and decentralized stablecoins.

Through Centrifuge Prime, organizations can build credit portfolios tailored to their specific needs. Instead of buying generic offerings, investors can create portfolios matching their particular risk appetite and investment duration. With returns starting at 4% and going up to over 13%, Centrifuge Prime offers a range of solutions to meet the needs of any organization or protocol.

Centrifuge works with other major players in tokenizing real-world assets, including MakerDAO, Blocktower, and Circle, to create more investment opportunities. The protocol follows all KYC and security requirements of traditional financial institutions to ensure that users remain safe while investing in the blockchain.

2. Maple Finance

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Maple Finance is a credit lending protocol that connects lenders with borrowers. The protocol supports two types of loans: fixed-term and open-term. Maple Finance involves three main parties: borrowers, lenders, and pool delegates.

Organizational borrowers can access financial options on Maple Finance. Lenders can earn returns on their assets by lending to borrowers. Pool delegates are credit specialists who assess, manage, and guarantee loans. Previously, Maple Finance focused on uncollateralized lending, but it is increasingly concentrating on loans based on RWAs. In the past, uncollateralized crypto lending caused Maple difficulties, resulting in over $50 million in bad debt.

Until now, Maple Finance has been a market leader in private RWA credit protocols, with over $3.1 billion in total loans issued.

3. Goldfinch

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Goldfinch is a lending project designed for real-world businesses, particularly those in emerging markets. It supports various business types and offers attractive returns of up to 30%. Goldfinch enables businesses to borrow cryptocurrency without requiring digital asset collateral. Instead, loans are fully secured with RWAs, making the crypto market accessible to all businesses.

The protocol involves four main participants:

  • Borrowers propose terms in a Borrower Pool.
  • Backers review and decide on funding these proposals.
  • Liquidity providers contribute to the Senior Pool for passive income, which in turn funds Borrower Pools.
  • Auditors, selected randomly, approve borrowers to safeguard against fraud.

Goldfinch is invested by Coinbase Ventures, a16z, and more tier-1 crypto ventures. With over $99 million in active loans, and nearly $100,000 monthly revenue generated, this project is worth a spot on your 2024 RWAs watchlist.

4. MakerDAO

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MakerDAO, a top-tier Collateralized Debt Protocol, stands in first place in TVL at over $2.5 billion. This platform allows users to borrow the stablecoin DAI using various assets as collateral. Initially focused on token-based assets, MakerDAO has since included real-world assets, significantly boosting its TVL and user base.

Notably, over 50% of MakerDAO’s treasury now comprises real-world assets. In a strategic shift, part of its USDC holdings has been invested in Coinbase for interest gains, and there are plans to purchase short-term bonds, aiming to increase profits.

While MakerDAO bridges the gap between real-world and crypto assets in DeFi, its venture into short-term bond investments carries risks. Market volatility or large-scale user withdrawals could challenge the protocol’s stability, potentially leading to mass liquidations.

5. Chainlink

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As RWA has become a frequently discussed concept recently due to its growth and appeal to investors, not just in the DeFi market but also among institutional investors in TradeFi, Chainlink’s role is getting more crucial.

Established in 2017, Chainlink is the leading decentralized oracle network with over $4 billion in market capitalization. Chainlink has positioned itself as a crucial infrastructure component, connecting blockchains with the external world by providing real-world data to blockchain smart contracts. Conversely, it also enables external parties to receive data from the blockchain through the Chainlink Network.

In short terms, Chainlink acts as a bridge, supplying and connecting data between blockchain and real-world off-chain information. Chainlink’s fourth-quarter report reveals what enthusiasts can expect for the coming year. The cryptocurrency project will further integrate real-world asset tokenization and TradiFi in 2024. Previously, it prioritized the Cross-Chain Interoperability Protocol, a new data solution, and the introduction of developer functions within the LINK blockchain.

6. Ondo Finance

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Ondo Finance is recognized as the front-runner in tokenized securities with a dominant 50% market share per Steakhouse Financial’s Dune Analytics dashboard.

Its USDY stands out as an alternative to established stablecoins like Tether’s USDT and Circle’s USDC. It’s a tokenized note, underpinned by short-term U.S. treasuries and bank demand deposits. The team highlights that holders benefit from a yield, reflected as an increasing token value, generated by these underlying assets.

Furthermore, Ondo Finance is set to launch a rebasing counterpart to USDY, named mUSD, in the upcoming weeks. This wrapped version of USDY is engineered to consistently equal $1, distributing interest through the issuance of new tokens, the team has announced.

Recently, this tokenized real-world asset platform announced the expansion of USDY to the Solana blockchain and its decentralized finance protocols, such as Orca and Raydium.

7. Credix Finance

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Credix Finance is a key credit project in the RWA landscape, built and thriving on the Solana ecosystem. The platform enables Lenders to generate consistent profits by injecting liquidity into the project. Meanwhile, Borrowers have the advantage of accessing loans with low-interest rates and quick turnaround times.

Credix acts as a bridge between fintech companies and non-bank lenders who require capital to provide loans to their clients and institutional investors, including hedge funds and family offices, who are on the lookout for profitable opportunities. The Belgium-headquartered company has an impressive $44 million in outstanding credit, denominated in USDC on the Solana blockchain, according to figures from the decentralized finance data aggregator DefiLlama.

8. Clearpool

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With 462 million loans originated, Clearpool is a notable decentralized credit protocol that we recommend in our top list. Retailers and institutions can access liquidity without the need for collateral on Ethereum, Optimism, and Polygon, thanks to Clearpool.

In Clearpool, borrowers can propose to be whitelisted by the Clearpool community, which comprises CPOOL token holders. After that, they can create and launch their own liquidity pools. The whitelist is established through a governance voting process, where CPOOL token holders assess the borrower’s proposal’s strength and reach a consensus decision.

Liquidity providers for these pools receive attractive interest rates on Clearpool, offering liquidity to the borrower group and effectively managing counterparty risk through the issuance of cpToken – Clearpool LP tokens. The pools’ APY is enhanced with additional CPOOL rewards, making Clearpool one of the most attractive destinations for DeFi lenders.

9. TrueFi

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TrueFi is a DeFi protocol offering favorable interest rates for lenders and collateral-free loans for borrowers. In TrueFi, borrowers undergo vetting and request loans in TUSD (TrueUSD). TRU Stakers vote on loan approvals with “Yes” or “No” decisions. Lenders earn interest on lent TUSD and can farm TRU.

Borrowers submit their loan requests to the pools with their desired interest rates and terms. Instead of going through a third party or the lender directly, all TRU Stakers have the right to approve loans by voting “Yes” or “No.” This process shows that loan approval depends not only on the lender’s consent but also on the voting rights of TRU Stakers.

Lenders (or liquidity providers) add TUSD to lending pools, earn interest, and can use it to farm TRU. Unused TUSD in the pool (when there are no borrowers) is sent to the CURVE protocol (CRV) to maximize profits.

10. Polymesh

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Last on this list is Polymesh, a public-permissioned layer 1 blockchain. Polymesh is dedicated to enhancing the security token industry. It leverages its utility token, POLYX, to reward and fine participants in its ecosystem, thereby bolstering blockchain security. Additionally, POLYX plays a crucial role in governance and staking within the Polymesh environment.

Unlike other open blockchains, Polymesh is one of a few layer 1 blockchains built for security tokens. Currently, most securities-focused projects are layer 2 initiatives built on pre-existing blockchains like Ethereum or Solana. Polymesh, however, is a standalone layer 1 blockchain. With its infrastructure, Polymesh hopes to improve the security token industry by solving governance, identity, compliance, confidentiality, and settlement challenges.

Conclusion

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Above are the 10 best real-world assets protocols to watch in 2024 based on their use cases, TVL, and protocol’s metrics.

As we delve into the next bull run with the next high level of mass adoption, these protocols stand out for their innovative approaches to bridging the gap between traditional finance and the digital world. They offer unique solutions, from tokenization, and private credit services to blockchains, they are creating a more accessible and transparent decentralized financial world.

As we continue to witness the growth and integration of RWAs, these projects not only promise to thrive as new investment strategies besides traditional financial instruments but also provide more yields from real-world assets. Keep an eye on our next top picks in DeFi, GameFi, and more to gain valuable insights stepping into 2024.

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Disclaimer: This article serves informational purposes only and does not constitute financial advice. Conduct your own research before making investmendecisions.