TradFi won’t touch grey liquidity in DeFi. What they need are compliant pools. That’s what @Terminal_fi is building: the infra for institutional. Here’s why it could be the next unlock for institutional RWA: 🧵👇

0/ What's Terminal? Terminal bridges permissionless liquidity with regulated on-chain markets, beginning with a permissionless DEX and expanding to tokenized RWAs. Imagine Terminal as Wall Street's trading desk for both traders and institutions, all on-chain.

1/ Start by creating yield-bearing dollars that are usable in real life. Terminal's permissionless DEX allows users to earn yield on any yield-bearing assets up to the last second before they spend them. A perfect example is Terminal x Ethena’s sUSDe 👇

2/ Imagine users holding sUSDe in their wallets, earning around 10% APY. When they pay bills in real life, Terminal converts sUSDe to USDT seamlessly, with almost no fee, thanks to Terminal's infra. Hold dollars, earn yield, and spend instantly for billions of people.

3/ Terminal is running the pre-deposit program. ($250M TVL) Deposit USDe, WETH, WBTC → earn Roots (Terminal's points) + Sats (Ethena) + native yield (i.e. sUSDe yield for USDe) This is the gateway for early farmers before institutions arrive.

4/ Then, they'll become institutional marketplace for digital assets. The final piece to make TradFi enter DeFi effectively, by using: > Compliant, whitelisted pools (KYC). > A new ERC standard for on-chain equities. Here's how each works 👇

5/ Compliant, whitelisted pools (KYC). Institutions need guarantees: their liquidity can’t touch grey areas. Terminal addresses this with KYC-gated pools. Only verified wallets gain access, ensuring compliant liquidity at scale. This is a perfect use case for @Securitize (Terminal's partner).

6/ A new ERC standard for on-chain equities. For the first time, equities can live natively in DeFi. The new ERC standard by Terminal will bring real stock actions on-chain: + Dividends + Buybacks + Rights

7/ Terminal is fast becoming the liquidity hub on stablechains for both retails and institutions: > Permissionless pools for anyone. > Permissioned pools for institutions Its pool design lets anyone use yield-bearing assets like normal stables and ETH, while still keeping the yield.