Reasons why RWA struggles in WEB3 and the solutions proposed by Theo Network
Summary in 3 points:
1. RWA has too low investment utility value for Web3 investors.
2. There are various uncertainties, and utilizing DeFi is difficult.
3. @Theo_Network was created to solve these issues.
As mentioned by the investor CoinLike, the RWA sector is always moving with major news in the crypto market, attracting the attention of all market participants.
In fact, many Web3 market participants expected that the massive financial capital from Web2, such as Yeouido, Wall Street, and Hong Kong, would move to Web3 due to the RWA sector, bringing tremendous liquidity to the market.
However, despite the emergence of RWA in the market, the results have been different.
We have yet to experience the power of RWA in the market.
What is the reason for this?
I believe the reasons are complex.
For Web3 investors, RWA investments have too low utility value.
Web3 investors buy Bitcoin, Ethereum, and Solana and utilize the virtual assets purchased through DeFi platforms like AAVE or Morpho.
As assets, they can deposit Bitcoin through DeFi to earn interest and borrow USDT to trade new coins in the short term, among other uses.
However, utilizing RWA in this way is difficult.
As a result, it is not easy to feel the attraction of trading RWA in Web3 when RWA products are already sufficiently tradable in the Web2 market.
Consequently, the growth of the RWA market slows down, liquidity becomes scarce, and with a lack of liquidity, RWA DeFi struggles to emerge, creating a vicious cycle.
If projects like RWA DeFi ecosystems that can lend and utilize RWA products based on abundant liquidity are launched, I believe they could fill the gaps I see.
That is precisely the solution proposed by @Theo_Network.
Through various partnerships, it supplies RWA liquidity on-chain and launches RWA tokens on multiple networks such as Ethereum, Arbitrum, Base, and HyperEVM, allowing them to be utilized in DeFi.
I will be watching the process of how Theo Network addresses the reasons why the RWA sector has not shone, alongside @Edward__Park!
๐ฐ๐ท RWA Theorist in Korea: Why is WEB3 RWA Useless Nowadays? "RWA Theorist (Theo-rist) is being produced."
We have planned content that can be chewed, torn, and tasted along with the news that @Theo_Network has issued RWA $thBILL on-chain in collaboration with Standard Chartered Bank's Libera.
It's called RWA Theorist. It is a healthy platform to discuss WEB3's RWA beyond the Theo product itself, how we can move forward, and how we can solve the problems we currently face, with sweet rewards hidden without exaggeration.
๐ท First Theory: Why is WEB3 RWA currently USELESS?
Let's start off spicy!
Despite being mentioned as a field that must succeed with a bright future in WEB3 due to its enormous market size and growth value, what is the reason it has not yet shone?
We have not heard of any significant success or achievements in the RWA field within WEB3. In other words, we have not seen any success cases that resonate with us.
What is the problem? And how can we solve it? It may be somewhat difficult, but it is still a topic worth discussing: RWA in WEB3. Let's open the first chapter with Theo!
The Theo-Rist will continue in the future, so please pay a lot of attention... or should I say, we must pay a lot of attention?
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