RWA in DeFi

RWAs become most powerful inside DeFi — collateral for loans, yield in vaults, and trading pairs with stablecoins. Integration connects TradFi yields to crypto-native composability, but permission and pricing constraints limit what actually works today.

Tokenized treasuries back stablecoin minting or serve as lending collateral when governance lists them. Haircuts and loan-to-value limits reflect liquidity and credit risk — treasury tokens get better terms than thinly traded real estate shares.

Yield aggregators route stablecoins into RWA vaults — MakerDAO's real-world assets collateral and Flux Finance for T-bill tokens are canonical examples. Yields reflect off-chain rates minus protocol fees and risk premiums.