RWAting

Just published a fresh new analysis of @onrefinance's ONyc. (rwating.com/ratings) This is currently our highest rated asset at Risk: B, Return: B. The team has very clear documentation and seems one the best at structuring the entities/funds for user safety. ONyc also has good returns for a RWA, though it's not clear to us (reinsurance newbies) how much a insurance payout event will wipe out NAV. Will DeFi loops at high leverage break? @solana picked a good reinsurance team/protocol to support. We've traditionally been on EVM for DeFi but this gives good impetus to bridge to Solana for DeFi. will compare this with @re's RWA assets for the next rating.

@dcfgod it's because these are not true stablecoins. these are debt and equity wrappers which never promised to be at $1. most new-age stablecoins are just funds, much like USDe is a fund wrapper

We’re on our 5th stablecoin depeg this week and nothing was exploited

have you disclosed your box spread positions? 1 year is a significant duration mismatch against the issued stablecoin. liquidity suppliers to lending markets get rekt, no liquidators would trust "trust me bro" mi 100.04% backing and liquidations will not happen in an orderly manner please provide more transparency like some of the other RWA protocols we've looked at

msY Portfolio & Redemption Update We want to provide a clear update on the current msY portfolio, the remaining box-spread maturity profile, and the path forward for restoring liquidity to the minter. As previously communicated, the msY box-spread strategy began approaching capacity in its original short-duration Deribit execution environment. In response, Main Street expanded execution across additional centralized venues and OTC box-spread counterparties in order to continue optimizing risk-adjusted yield for holders and avoid forcing new capital into increasingly compressed shorter-dated opportunities. As part of that expansion, certain OTC box-spread opportunities were executed at longer maturities than the initial short-duration target range. Following the unwind of the shortest-dated and most liquid positions during the initial phase of the Morpho market squeeze, the remaining portfolio now consists of boxes with approximately 60 to 340 days remaining to expiry. The remaining book is therefore naturally more concentrated in the medium-to-longer dated part of the maturity ladder, because the shortest-dated liquidity was used first to support the minter and reduce near-term pressure. Importantly, this does not change the core economics of the strategy. These are fixed-payoff box-spread positions. If held to expiry, and assuming the relevant venue or counterparty performs, the positions accrete toward their known maturity value. The current situation is therefore primarily one of timing, secondary-market liquidity, and redemption pacing; not a change in the expected terminal payoff of the portfolio. Current portfolio position: Current CR, assuming boxes are held to expiry: 100.04% Insurance fund: $525,527 in msUSD Insurance fund treatment: if required, the msUSD held in the insurance fund can be burned, increasing protocol coverage Coverage including the insurance fund: above 100% Our priority is to preserve full backing and avoid crystallizing unnecessary losses. We are actively exploring opportunities to unwind or sell selected boxes where executable pricing is available and where, after taking into account the insurance fund and any applicable protection mechanisms, the system remains above 100% coverage. Where that threshold can be met, we intend to take those opportunities and use the proceeds to continue refilling the minter. We do not expect that every remaining box necessarily needs to be held all the way to expiry. As boxes move closer to maturity, the discount between secondary-market pricing and maturity value should naturally compress, which can create further opportunities to exit closer to NAV without impairing coverage. This means liquidity can be restored progressively through a combination of scheduled expiries and selective secondary-market unwinds where pricing is acceptable. Where secondary liquidity is not available on acceptable terms, we will continue following the approach outlined in our risk framework: allow box positions to mature, release liquidity as expiries occur, and refill the minter as capital becomes available. Selling fixed-payoff positions at distressed marks simply to accelerate liquidity would be value-destructive for holders. Waiting for better execution, selectively unwinding where coverage remains above 100%, and using the insurance fund as intended gives the protocol the strongest path to preserve backing and restore liquidity in an orderly way. This is a timing and execution-management issue, and the portfolio remains structured around fixed-payoff positions that accrete toward maturity value. We are confident in the path forward and will continue to provide updates as liquidity is released, boxes are unwound, and the minter is refilled. Our focus remains unchanged: preserve NAV, protect holders, avoid uneconomic liquidations, maintain coverage, and work through the maturity ladder in the most responsible way possible.

@onrefinance @ExponentFinance @solana nice. we reviewed ONyc and was wondering how an insurance payout event would affect NAV for loopers, who are always at risk of liquidation. this seems to solve it. just go into the senior loop

ONyc risk-tranching is now live on @ExponentFinance. For the first time on @solana, users can choose how they want exposure to reinsurance-backed yield: prioritizing principal protection or taking additional risk in exchange for enhanced returns.

@ProofOfTravis this can get even worse. given their balance sheet and rapidly deteoriating common equity position, this plausibly goes to <50c in 2-3 months in worst case scenarios. we reviewed their balance sheet ~2 weeks ago and flagged the ticking time bomb. loopers are not paid enough

Oh, this isn’t good

@stablewatchHQ We warned about this on the report on apxUSD on our site! Still not too late to read this, the chance of apxUSD going to <50cents is not 0.

JUST IN: STRC backed stablecoin $apxUSD just dropped below $0.8

A lot of the assets in Private Credit, Funds, Carbon Credits, Commods, Real Estate and Collectibles require much more transparency. In their current state they're more opaque wrappers than stablecoins. We have so much trouble DD-ing the risks of many of these assets when trying to deploy into them, which we detail on our site.

1/ RWAs are the logical conclusion of stablecoins. I've written a new piece that: - Proposes a taxonomy for the different types of RWAs - Discusses the adoption sequence of RWAs - Outlines the issues that are preventing the continued adoption of RWAs 👇 archetype.fund/media/rwas-the…

@blackopal_fi you guys have brought on EM short-term credit card receivables risk hedged to USD. great work! We looked at the underlying structure of what you done in a public report and believe it's a really compelling product. Let us know what you think!

Higher yield is often associated with taking higher risk. That assumption deserves more scrutiny. LiquidStone II has consistently outperformed the Chainlink DeFi Yield Index by more than 900 bps. The difference is not about moving further up the risk curve. It is about owning better assets. blackopal.finance

@Reental_co @yaroslavwr_ @RWA_xyz Fully agreed. Transparency is what will attract capital to deploy into it onchain, as the tail-risk of all these wrappers is that capital goes to 0. That's why analyzing the underlying fund structure like we do with many of these token wrappers is core risk management work

Tokenizing an asset does not automatically turn it into a good opportunity. It can make it more accessible, but quality depends on transparency, risk, duration, liquidity, reporting, legal structure, management and exit mechanisms. In RWA, the assets that win will probably be those combining real exposure with clear information and solid infrastructure, not simply those that arrive onchain first.

A lot of the current tokenization market still looks like phase one. @RWA_xyz now tracks 927,966 total RWA holders across 173 platforms, while distributed asset value sits around $32B. That is enough scale to stop asking whether tokenization works in theory. The more useful question now is where the market starts concentrating once people care less about new wrappers and more about what can actually move, settle and plug into products after issuance.

@EthanDeFi_ A cursory online search of Figure's HELOC loans also shows that there are many consumers that use them (though it seems they don't like the loan they took up very much, lol). At least it proves that their lending business is fairly real

But what I like about PRIME is that its HELOC loans used to earn yield are originated by Figure. Figure is a publicly listed US company and it's also the largest non-bank HELOC lender in U.S. It's been operating for 8 years, which makes me think they know what they are doing.

You can still get 30% APY on your stablecoins even in a bear market. Here are 3 yield strategies with 30%+ APY 👇

@WazzCrypto Markets finally pricing in the end of the common equity dilution mechanism. Next thing he'll find a new junior-er debt with a higher APR to cover this mistake

$STRC moving back closer to its fair value of $0

@0xNairolf @Deebs_DeFi there was a study (can't find it now) which showed that 2x leveraged S&P 500 after certain drawdown conditions outperformed just normal-long S&P 500. your idea is actually not ridiculous though it was a joke

@Deebs_DeFi ahaha yea but that was a joke all my tradfi friends only talk about "oh our goal is to beat the sp500" ahha so they can just long it 2x this shit never go down anyway

if everyone wants to beat the S&P 500 why don't they just open a 2x leveraged long?

TradFi brokerages want to do this, but it wouldn't be possible. each country's currency is gated by their country, and outside of the US nobody wants capital flight to USD. Futu will not be allowed by the CN gov to offer extensive collateralization into non-CNY assets. Korea's restricting KRW outflows as well. It will be a long and slow journey, but this will happen on the blockchain as RWAs develop, the only true neutral venue everyone can agree on

昨天跟 Futu 的朋友聊完，我反而并不看好 CEX 在资产融合时代的位置。 很多人觉得 CEX 上线股票、预测市场、商品或者更多 RWA 就是在做跨资产交易，但真正的跨资产交易从来不是上线更多资产，而是让不同资产进入同一个风险体系。 Futu 很有意思。他们现在已经支持用股票持仓作为抵押物交易 Crypto，未来甚至可以把 BTC 转成 iBit 后再参与抵押融资。同时，他们拥有 FCM 牌照，可以接入 Kalshi 的预测市场，未来也有机会接入美国合规体系下的 Perp。 表面上看，这是不断扩充产品线；本质上看，这是不断把新的资产类别纳入同一个清结算体系。 未来一定是联合保证金时代，但联合保证金只是结果，不是护城河。真正的护城河是底层的清结算网络，是谁能够让股票、Crypto、预测市场、衍生品等不同资产共享同一个资金池，并在同一个风险引擎下完成定价、抵押、净额结算和清算。 CEX 的位置其实有些尴尬。 它拥有交易场，但并不拥有真正意义上的结算层。股票资产只是被上架到同一个 App，却没有进入同一个风险体系。换句话说，它做的是资产上架，而不是资产融合。 反而链上天然具备这种能力。 很多人把链上的优势理解为无需许可或者全球可访问，但我认为更重要的是，链本身就是一个统一的结算环境。 当股票、国债、稳定币、商品、永续合约和预测市场都原生存在于同一条链上时，它们不仅可以交易，还可以相互抵押、相互借贷、相互清算，并最终进入同一个风险域。 从这个角度看，拥有更多资产与更多用户，是推动它能够成为最大的跨资产清结算网络的前提。 联合保证金是这个网络长出来的第一个功能。未来还有风险净额结算、抵押品共享、流动性复用以及协议之间的可组合性。 自建 Layer1 的意义从来不仅仅是性能，也要去争夺下一代金融体系的清结算主权。

@narausd hey team, would love to get a first look at Nara USD's trade financing RWA and write a free DD report for a potentially good asset. you can see how we rate other assets on our site through our X profile. hit us up at this account to chat!

$194 trillion flows across borders every year. Projected to hit $320 trillion by 2032. DeFi's total TVL? Around $100 billion on a good day. The opportunity isn't inside crypto. It's the trillions that hasn't touched it yet. That's the market @NaraUSD is built for. Source: @jpmorgan, 2026 Cross-Border Payments Trends.

there's even more benefits - countries that don't have easy access to US markets (e.g. Korea, China) will see capital flight to USD assets - stocks to become like WBTC/ETH, collateralized for any kind of leveraged financing - single clearing instead of multiple retail brokers, better spreads for retail send the stonks onchain, it's the best outcome

the only hard barrier for tokenized stocks lending is regulation once that's sorted, it's full send imagine: - one click conversion from your trad broker to tokenized stocks - no paperwork to unlock a margin line - portfolio backed credit card - automatic refinancing to the cheapest lending market there is really something there

@laurashin with its balance sheet under pressure, it can't keep selling equity without diluting existing holders. raising $300m extends runway by a few months by diluting shareholders once, but it didn't solve its real issue of runway. why would it repeg?

1/ Strategy's STRC Bitcoin-backed preferred stock can't seem to find its way back to its par value of $100. A Bitcoin rebound surprisingly did not help. Strategy's move to bi-monthly dividend payment cycle has not helped and neither has the company's addition of $300 million to its cash reserves, bringing it to $1.4 billion. What gives?

@ModestusOkoye @tori_finance @castle_labs @re they seem to generate 10+% yield via FX carry trades. Do you understand how that might be possible? that level of return is above normalized FX carry returns

Been seeing a lot of talks around @tori_finance and here are my two cents: - Tori is an added validation to @castle_labs's vaultification of onchain finance. In the nearest future, we will have everyone depositing into valuts and agents running strategies - Like @re, Tori is expanding into global markets and not just crypo to tap into carry market spreads (this is something that is battletested for a long time now and known to work) Why I compared it with Re is because of the vault performance of Re even in the bear markets. Tori might experience similar stuff - Despite all these, as a stablecoin product, they need more than yield as moat to gain adoption which is why I'm interested in dApps integrating trUSD/strUSD.

@onrefinance @ExponentFinance @Loopscale @elementaldefi @RockawayX @AccountableData @kamino @solana nice! we really like how OnRe derisked a lot of the traditional RWA weaknesses by being pretty transparent, especially with the segregated Bermuda fund structure

Independent asset managers are now building ONyc-based strategies. Two curated vaults, OnRe Growth and ONyc Fixed Deposit, give stablecoin holders automated exposure to ONyc, each with a 4x OnRe Points multiplier. The OnRe Core Vault enables direct USDC deposits from Ethereum, expanding access to ONyc without requiring users to bridge assets themselves. Yield attracts attention. Infrastructure built around an asset creates conviction.

@stacy_muur if you're still in crypto with zero exposure to RWAs... you should probably...

If you’re still in crypto with zero exposure to Hyperliquid, Polymarket, neobanks, and privacy... You should probably leave crypto once and for all.

@ProofOfTravis the RWA vaults are fulfilling this niche via looping, and they know this too. doing DD on the issuers is very important though, so as not to get rugged a.l.a Main Street Finance

I think we're smack in the middle of vault season Vaults that reward a fair APY where you just deposit and wait is what most people are looking for until we can be bullish on Bitcoin/alts again So there's a window for curators and vault infra Once that dries up, we'll be at the bottom of the bear as there'll be literally no more capital left in this space

@0xNairolf Saw this project on Canton trying to do this with xStocks. Oracle pricing/secondary market pricing still needs to be improved as the slippage eats away all the incentives to hold them

the endgame is: > owning tokenized stocks > borrowing stablecoins against them > in one click and with size ridiculously gigantic market