RWAfi Newcomer Plume: Building a Real Asset Ecosystem for Encryption Native Users

Real World Assets (RWA) are becoming an important link connecting traditional finance and encryption, gradually attracting market attention. However, the current RWA market still faces many challenges: inefficiency, high costs, and the integration between the traditional financial system and the on-chain ecosystem is not smooth, with bottlenecks in further development urgently needing to be addressed.

To address these issues, a fully integrated and modular chain focused on RWAfi has emerged. As the first truly public chain serving encryption-native users, this project aims to provide more efficient, transparent, and convenient solutions by creating a dynamic, liquid, and composable RWA market that redefines finance, making it as versatile as native encryption assets.

Rapid development and widespread recognition

After nearly a year of rapid development, the project has been recognized by the community, institutions, emerging banks, and encryption native protocols (such as lending protocols, perpetual contract DEXs, AMMs, etc.) as the best solution for RWAfi. Currently, over 180 projects have been built on it, with total deployed assets exceeding $1 billion, and several hundred million assets are set to go on-chain. During the two-month testing phase, the project also achieved significant results: the number of active wallets surpassed 3.75 million, and the on-chain transaction volume exceeded 270 million, fully demonstrating the ecosystem's vitality and users' enthusiastic participation.

In November of this year, the project held a pre-storage event with an initial target of $5 million, which was quickly filled within 70 seconds, exceeding expectations. In response to the huge demand from the community, the project team immediately raised the cap to $30 million, ultimately exceeding the target in 90 minutes, with oversubscription reaching 6 times the original plan.

The growth potential of this project has also been recognized by several well-known VCs, having cumulatively completed $30 million in financing. In May of this year, the project team announced that it had completed a $10 million seed round financing, with participation from several well-known investment institutions. This round of financing has laid a solid foundation for the project's innovation and expansion in the RWAfi field.

On December 18, the project team announced the completion of a $20 million Series A financing, bringing the total financing amount to $30 million. This round of financing included several well-known investment institutions and financial groups.

A blockchain ecosystem designed for RWA based on the DeFi concept

Although there are already many Layer 1s in the industry, and new projects continuously entering this field make competition increasingly fierce. However, due to the customized requirements for permission management, compliance, and liquidity in the series of operations for real-world assets on the blockchain, this project realizes the need to create a blockchain specifically designed for RWA, and aims to achieve this vision by embedding more customizations and functionalities at the network level.

Unlike traditional RWA models, this project aims to create a more efficient and accessible ecosystem for cryptocurrency users and traditional financial institutions by leveraging DeFi principles, making it the first and only protocol focused on RWAfi. RWAfi is a new model in the blockchain finance space, meaning that tokenized RWAs can be composable and flexible like native cryptocurrency assets. Based on the idea of adopting encryption natively, the project prioritizes composability, liquidity, permissionlessness, and interoperability from the perspective of constructing what cryptocurrency users truly need, designing products and services around RWAfi.

The modular infrastructure of this project is designed to support the tokenization and management of real-world assets, with the core components of its architecture being the tokenization engine, smart wallet, and on-chain data highway. Through the collaborative work of these components, a seamless and secure environment is provided for managing multiple asset classes, ensuring compliance, and facilitating data integration.

In terms of core functionality, the project focuses on accelerating the on-chain process of real-world assets, liquidity, and regulatory compliance, providing a comprehensive framework that includes liquidity management, built-in anti-money laundering (AML) compliance, and data access features.

The project utilizes a network of compliance partners to achieve the compliance verification of tokenized assets, ensuring that transactions meet relevant regulatory requirements. It simplifies the regulatory compliance process and user registration process by directly integrating compliance into the platform. With the integrated compliance features, users can confidently engage in RWAfi transactions, accessing a broader range of opportunities online while adhering to the necessary legal standards.

In terms of key asset liquidity and market efficiency, the project promotes liquidity development by collaborating with trusted liquidity providers and deploying yield enhancement mechanisms. Its trading functions enhance liquidity options for RWA tokens through staking, yield farming, and integration with DeFi protocols, supporting market activities. This allows users to participate in asset trading by reducing slippage and improving asset stability, and to take advantage of liquidity and yield opportunities in the RWA market.

Focus on real returns, emphasize service for encryption native users

As a special area where blockchain technology intersects with traditional assets, the enormous potential of RWA stems from the traditional financial industry. Perhaps based on this, most RWA projects are currently led by individuals with a traditional finance (TradFi) background, who are trying to bring traditional financial products onto the blockchain. However, mainstream users on the blockchain tend to be more encryption-native rather than traditional finance users, making it difficult for most products to find a market fit.

The project believes that in order to truly drive the growth of RWA, it is essential to first focus on the needs of on-chain users. Its RWAfi concept not only aims to bring RWAs on-chain but also to create products tailored for users that follow what they are already doing in a way that combines the traditional and encryption native worlds. This is because on-chain users are often the most dynamic and innovative when exploring RWAfi application scenarios, and they have a strong demand for real yield, liquidity, and composability. Essentially, the project aims to meet these needs in a manner similar to DeFi, aligning products with market requirements. What users encounter on the surface are decentralized financial products, but behind them are real-world assets that can bring actual yield.

As an open, permissionless chain, this project provides an easy-to-use, compliant, and efficient asset onboarding tool, allowing anyone to freely build and promote development without restrictions. Among the hundreds of protocols that have been attracted so far, these assets cover a variety of categories. Currently, the project's asset categories can generally be divided into three types: collectibles, alternative assets, and financial instruments. Collectibles include wine, artworks, watches, sneakers, and Pokémon cards; alternative assets mainly consist of private credit, real estate, or green energy projects; financial instruments are primarily stocks or corporate bonds.

However, for the vast majority of encryption users, the category of the assets themselves is not important; their use and potential returns are the focus. Therefore, based on the aim of benefiting existing on-chain users, this project also focuses on the three most important use cases for encryption users. The first category is yield farming, which revolves around earning returns through methods such as depositing funds and performing circular operations, while achieving efficiency and convenience in operations. The second category is trading, which includes actions such as buying, selling, lending, and traditional spot trading. The third category is speculation, mainly involving derivatives and other similar high-risk investment operations. The project focuses on assets and application scenarios related to these protocols, making them more aligned with the actual needs of encryption users.

The project focuses on bringing real returns through income-generating assets and introducing real users through existing markets, expanding the use cases of encryption ecosystems and RWAs. For example, the project collaborates with RWA projects in the renewable solar energy sector to provide users with the opportunity to earn returns from solar assets valued at $100 million. This collaborative project tokenizes "the leverage of commercial solar construction loans and post-operation assets," which will serve public school district development projects. The project team states, "These projects have 100% contracted revenue and the costs are predictable." According to the statement, both teams believe that the school district's commitment to these development projects reduces the overall risk of the tokenized projects and expects returns to be between 9% and 18%.

In addition to emphasizing on-chain user needs, the project also serves traditional financial institutions and can address key challenges in compliance and liquidity in promoting institutional adoption. This dual-service strategy positions it to achieve innovation and breakthroughs in the RWAfi field, catering to the different core demands of crypto-native users and traditional financial institutions.

Looking to the future, the project, which is about to officially launch its mainnet, will further enhance the scalability and security of its infrastructure based on the existing foundation, and further integrate to improve data privacy; in terms of ecological development and RWA expansion, it will undoubtedly add more asset classes, including tokenized luxury goods, stocks, and new forms of commodities; moreover, by expanding cooperation with financial institutions, it will make it easier for institutional investors to access tokenized RWA. This strategic positioning not only facilitates the connection between the encryption world and traditional finance but also makes the project an important bridge for promoting RWAfi development.