Post #2295

RWAs crossed $20B outstanding, but only ~9% actually gets used inside DeFi. Most pools sit underutilized, with tight risk parameters and thin liquidity keeping borrowing activity low. The mismatch is structural. DeFi rails were built around assets like ETH and BTC, where pricing, liquidation, and liquidity are continuous. RWAs come with slower settlement, offchain dependencies, and legal constraints that do not fit that model cleanly. Until those frictions get abstracted away, RWAs will keep growing on paper faster than they get used onchain.