@bansss

Stage 3: Leverage - The Next Evolutionary Jump This is the least mature phase, but its early signals are already visible. Stage 3 occurs when RWAs become: • standardized collateral • integrated into multi-protocol leverage loops • wrapped into structured products • hedged via on-chain derivatives • used for credit creation Leading indicators that leverage is coming MakerDAO’s Shift to RWA-Dominant Revenues RWA strategies now drive a majority of Maker’s income. Treasury bills fund: • DAI Savings Rate • MKR buyback & burn programs • protocol reserves Maker proved that RWA yields can support an entire DeFi economy. On-chain private-credit leverage loops Protocols are experimenting with: • borrowing USDC against private-credit vaults • recursive leveraged credit investment • automated rebalancing via risk engines (e.g., Gauntlet) Institutional credit vaults Apollo and other TradFi giants are tokenizing private credit, hinting at the arrival of: • leveraged carry trades • collateralized credit lines • yield-spread arbitrage across chains Required preconditions for full Stage 3 To unlock true leverage, the industry needs: 1. Deep liquidity - multiple AMMs, lending venues, derivatives markets 2. Market-wide standards - permissioned transfer tokens, KYC-compatible layers 3. Robust pricing & risk models - real-time NAV, default insurance, oracle integrity 4. Regulatory clarity - global alignment on tokenized securities When these are satisfied, RWA collateral will power a multi-trillion-dollar on-chain credit system - the on-chain equivalent of repo markets, structured credit, and fixed-income derivatives.

0 reply

0 recast

2 reactions