RWAs only matter when they generate yield or liquidity in DeFi protocols. Passive tokenized real estate is dead capital.
$RNT Lend now allows tokenized real estate as collateral for borrowing. This shifts RWAs from static holdings to active balance sheet tools.
Risk profile: collateralized borrowing introduces liquidation risk if underlying real estate valuations drop or if oracle pricing fails. Illiquid collateral = wider spreads and higher haircuts. Watch LTV ratios and liquidation mechanisms closely.
If real estate tokens can't be liquidated quickly in stress scenarios, lenders eat losses. This only works if secondary markets for these tokens develop depth.
$RNT Lend now allows tokenized real estate as collateral for borrowing. This shifts RWAs from static holdings to active balance sheet tools.
Risk profile: collateralized borrowing introduces liquidation risk if underlying real estate valuations drop or if oracle pricing fails. Illiquid collateral = wider spreads and higher haircuts. Watch LTV ratios and liquidation mechanisms closely.
If real estate tokens can't be liquidated quickly in stress scenarios, lenders eat losses. This only works if secondary markets for these tokens develop depth.