Sup peeps, it's me, the guy who coerces people who read his posts into buying him beer.

Today I wanted to touch on a recent narrative that's been making the rounds all over Crypto Twitter and all that jazz. If you've spent longer than a minute on any crypto-related social media feeds, odds are you've come across the term RWA, or Real World Assets.

But what are these so-called real-world assets?

And more importantly, why are the usual suspects, CT influenza, hyping it up as if it was the second coming of Jesus?

Well, for starters, it kinda is the second coming of Jesus, at least if you've been cultured enough to get into DeFi and have come to terms with how the whole decentralized financial system works.

So far, DeFi has largely been a PVP zero-sum environment, as it's largely dependent on liquidity inflows to thrive. Even the few good protocols that actually accrue revenue, and thus, make sense of having monetary valued governance, benefit the most when liquidity inflows into the system are massive. You can clearly see their revenue diminishing as people stop interacting with underlying protocols and outright leave the crypto space.

And that's the point, RWA would achieve a very simple yet powerful change, making DeFi a positive-sum game.

Imagine if you could tokenize real estate, TradFi investment vehicles, and even products themselves. Suddenly you don't really need to prey on people swapping on xyz AMM's pools anymore, instead, you're now accruing yield derived from physical things and their associated cash flow!

Enter the RWA narrative

Let me propose a few ways it could be leveraged to you (some of these are being implemented as you read this):

-Stablecoins holding T-Bill reserves, accruing interest rate yield on the collateral that backs them and distributing it to investors

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-Tokenized real estate, where you don't need to own a full property to benefit from renting income

-Tokenized e-shopping, where sales are carried out completely on-chain and your tokenized items can be later redeemed for the real-life item they represent on a pick-up point

-off-chain collateralized loans, where you can get on-chain loans over your off-chain assets

Of course, some of these come off the top of my head, but others are simply what I've seen some projects have been building...but you get the point, suddenly DeFi stops being a place to let loose your digital degeneracy, becoming a proper decentralized financial system with real-world value instead.

And what's more, a bunch of these RWA implementations would actually make DeFi (and by extension, the digital asset market as a whole) thrive under high-interest rate environments, making crypto the place you escape to when an economic recession looms, one that democratizes access to these assets when corrupt governments limit your financial freedom.

Want a real-life example? As you've probably guessed by now from how I try to get people to buy me beer, I'm an Argentinian. First off, that means I'm a world champion, second, France, and third, I have no real financial freedom within my monetary system, and thus, am forced to live within a 150% yoy inflation environment with no legal way of even buying American Dollars or international yield-accruing assets. With RWA, I could get T-bills and get the US's risk-free rate. I can't do that with my national excuse of a TradFi system.

Extrapolate my personal context a little bit and you can start to see how the RWA narrative would be enormously helpful to those of us living under corrupt regimes in third-world countries.

Anyway, that's it for today, hope you learned something from my ramblings, and if you did, you owe me a fucking beer. Cheers!

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