Real asset tokenization (RWA) is not a new concept. A series of USD stablecoins such as USDT, USDC, and DAI are the earliest RWA concept assets in the industry. Its value is mapped to the chain and embodied in the form of cryptocurrency, which can be considered as the earliest RWA practice.
Of course, with the further development of the world on the chain, RWA has once again become the narrative direction of the development of the Web3 industry. Under the brand-new RWA concept, Tokens that can represent actual assets on the chain, including ordinary Tokens and NFTs, are assets that exist outside the chain, but are tokenized and brought to the chain as DeFi internal assets. source of income.
RWAs can further represent many different types of traditional assets, real world assets refer to tangible assets in non-financial markets such as real estate, infrastructure, art, etc. Occupying an important position, the potential market size is more than 800 trillion US dollars. Compared with traditional financial assets such as stocks and bonds, we believe that RWA generally has higher stability and lower volatility.
RWA can represent many different types of traditional assets, such as real estate, gold, stocks, bonds, etc. After seeing the long-term development potential of the RWA track, financial institutions such as Binance, Goldman Sachs, and Siemens, as well as leaders such as MakerDAO, Aave, and Compound, etc. The entry of all DeFi protocols has also attracted market attention to the RWA track. At present, according to Rootdata data, there are 58 projects on the RWA track, many of which are invested by top investment institutions such as a16z, CoinbaseVentures, and PolygonVentures. RWA is becoming an important way to bring the more than $800 trillion traditional financial market onto the chain, bridging the huge gap between the encrypted market and traditional finance.
Although the process of RWA is complex, rigorous, pioneering and challenging, it is also full of valuable opportunities. In the short term, the tens of trillions of RWA market is expected to be integrated into the encrypted economic system in this round of market cycle.
ProsperEx, taking advantage of the RWA wave
This round of RWA concept is popular again, which is directly related to the bullishness of Binance, Citigroup and other institutions. With the current situation that the overall cryptocurrency market is hovering at a trillion-dollar scale, all kinds of mining and liquidity since DeFi Summer have been superimposed. Due to the failure of the sexual sharing and governance token model, finding a newer and more attractive DeFi narrative naturally needs to be redesigned.
ProsperEx is an emerging on-chain derivatives protocol, which includes on-chain perpetual contracts, on-chain options and other main derivatives gameplay, and also supports many transactions and income methods such as spot, DeFi mining, and Staking, to meet the requirements of different transactions. Prefer user needs. Of course, ProsperEx is not only a DeFi protocol with on-chain derivatives as its positioning, but also one of the promoters of the RWA trend.
What is special about ProsperEx is that its establishment of chain derivatives ecology not only focuses on cryptocurrencies, but is also making every effort to deploy on the RWA track, that is, introducing traditional assets such as gold, stocks, and bonds into the chain in the form of RWA, and Create a new derivatives system around these RWA assets.
In fact, since January this year, the overall U.S. Treasury RWA Token market value and daily circulation have risen steadily. At present, the total market value of the leading seven projects has reached nearly 300M, while the total value of U.S. Treasury RWA tokens alone has exceeded 600M. The RWA market is booming, so when the RWA market already has a certain early foundation, it will be more beneficial for ProsperEx to expand into this field.
Data source: https://app.rwa.xyz/treasuries
At present, among the nearly 60 RWA projects that Rootdata has statistics, most of them are US debt, loan, real estate and other types of projects. They are building a new RWA credit system and can convert traditional assets into RWA in a compliant manner. This has also established an early foundation for ProsperEx's layout in this field. In the future market direction, in-depth cooperation with these pioneer partners of the RWA track is expected to help ProsperEx build a lower asset introduction threshold, and when the time is ripe in the future At the same time, further establish the RWA asset issuance system.
Source: rootdata.com/Projects?sn=RWA&snc=RWA&sd=88
Of course, from another perspective, currently there are not many DeFi facilities that can provide derivatives trading services for RWA assets, mainly some early synthetic asset protocols such as Synthetix, etc., so this will also be a new market opportunity for ProsperEx.
Build a new on-chain derivatives system
Compared with the cryptocurrency market with a market value of only about 1 trillion, the huge size of the traditional financial market can make DeFi more compatible with external markets, thereby bringing greater liquidity, capital efficiency and investment opportunities. ProsperEx further establishes a new on-chain derivatives system based on RWA assets, which will be backed by a very broad blue ocean market.
The market size of traditional derivatives has continued to expand over the past few decades. The transaction volume of the derivatives market accounts for more than 80% of the overall market transaction volume. It has become an indispensable part of the global financial market. In addition, according to statistics, the size of the global derivatives market has exceeded 1.5 trillion US dollars, and it is growing at a compound annual growth rate of 7.97% every year. The boom in this market is largely driven by globalization and financial innovation. With the new impetus of the RWA wave, the early layout of ProsperEx is also expected to become one of the best trading places for traditional financial derivatives traders.
ProsperEx will provide derivatives traders with unique opportunities and market efficiencies, built entirely on-chain and available to all traders in a permissionless manner. In terms of transaction models, ProsperEx adopts two mainstream transaction methods, point-to-pool and point-to-point (order book), and uses zero-knowledge proof technology to ensure that point-to-point transactions are more decentralized, secure, and have privacy features. Based on this hybrid trading model, ProsperEx itself not only has the characteristics of low handling fee and 0 slippage, but also can obtain the best price, enter and exit positions with the smallest spread and price impact, without incurring additional fees. At the same time, it also has the characteristics of expanding more trading functions. For example, in addition to trading FT assets, it will also support trading of a wider range of asset types such as NFT.
Under the advantage of DeFi's high composability, ProsperEx will flexibly expand a richer RWA asset-based derivatives gameplay, which will also be a feature that the traditional financial system does not have.
At present, the ProsperEx platform has started internal testing (prosperex.xyz), and can provide users with transactions in contracts and options of more than a dozen mainstream assets including BTC, ETH, BNB, BCH, AAVE, etc., and will soon launch a new Trading support for spot and derivatives of RWA assets.
In general, RWA is becoming a new development trend, and it is also a new opportunity for the Web3 world to capture users and value from the Web2 world. ProsperEx is becoming an early deployer in the field of RWA derivatives, and is expected to lead more ecological users to become long-term beneficiaries of the dividends of the Web3 era under the new wave of RWA.