Real World Assets (RWA) have become a focal point in the decentralized finance (DeFi) landscape, and Holdstation is at the forefront of this transformative trend. In this article, we'll explore the growing interest in RWA within the crypto market, review notable projects, and Holdstation's initiative of trading real-world assets, allowing users to trade and leverage these tokenized assets through Holdstation Defutures.
The Rise of Real World Assets (RWA)
Real World Assets, or RWAs, represent tangible assets from the physical world that are tokenized on blockchain networks. This novel approach brings traditionally illiquid and inaccessible assets into the DeFi space, opening up new opportunities for investors and traders. RWAs are designed to mirror the value movements of real-world assets, providing a bridge between the crypto realm and traditional financial markets.
This RWA market, though still in its early stages, has shown significant growth. As of September 1st, 2023, RWAs rank as the eighth-largest sector in DeFi, with a combined Total Value Locked (TVL) of $1.3 billion. This growth is indicative of increased adoption and interest in RWA protocols.
The number of RWA token holders has also been steadily rising. As of July 24, 2023, there were over 41.3K RWA token holders on the Ethereum blockchain, doubling from approximately 17.9K token holders a year ago.
It's important to note that the tokenization of illiquid assets, like real estate and bonds, presents a substantial opportunity. Industry experts, such as the Boston Consulting Group, estimate that the tokenization of global illiquid assets could become a $16 trillion business by 2030. Even capturing a small percentage of this market could have a significant impact on the blockchain industry.
As adoption grows, traditional exchanges may facilitate the secondary trading of RWAs. With that, tokenizing and trading synthetic assets will play a crucial role in mainstream adoption.
Synthetic Assets: A unique approach
Synthetic Assets, as their name suggests, are digital representations of real-world assets created using smart contracts and blockchain technology. These assets derive their value from underlying assets or reference points, much like traditional financial derivatives. However, what sets Synthetic Assets apart in the realm of DeFi is their unique ability to provide users with exposure to a wide range of assets, including stocks, commodities, and more, all within a decentralized and permissionless environment.
One notable pioneer in this domain is Synthetix, a DeFi protocol built on the Ethereum blockchain. Synthetix has taken the lead in enabling the creation and trading of Synthetic Assets, offering users the opportunity to access a diverse array of assets without leaving the DeFi ecosystem. Through its innovative platform, Synthetix has introduced tokens that mirror the value movements of various real-world assets. Their innovative approach has undoubtedly set the stage for subsequent developments in the space, such as those witnessed in the case of Holdstation.
Holdstation's Vision: Bridging DeFi and Traditional Finance
Holdstation embarks on an ambitious mission to bridge the gap between the DeFi universe and traditional financial markets. Its strategic maneuver introduces an interesting feature– trading Real World Assets (RWAs), with a particular emphasis on assets like OIL and XAU (gold). Leveraging price feeds from Oracles and established centralized exchanges like Binance, Holdstation empowers users to participate in trading synthetic tokens linked to these real-world assets.
Unlocking Real-World Assets in DeFi
Holdstation's foray into the tokenization of RWAs signifies more than just a feature; it’s the approach to how traditional financial assets are accessed and traded. For a long time, trading Real-world assets in the traditional market have long been associated with high barriers to entry, illiquidity, and limited trading hours.
However, Holdstation's Defuture platform shatters these limitations by introducing synthetic tokens pair meticulously designed to mirror the price movements of assets like OIL and XAU. This means users can now engage in trading activities that were previously confined to traditional financial markets, and they can do so 24/7, providing unprecedented accessibility and flexibility.
Furthermore, Holdstation's user-friendly approach to RWA is matched by its support for leverage of up to 250x, making it a decentralized platform with unparalleled trading opportunities.
Holdstation's Defuture: notable effort for RWA
At the heart of Holdstation's pioneering efforts lies the Defuture platform, an indispensable gateway for users to explore and partake in trading opportunities intricately tied to real-world assets.
Recent focus for RWA has catapulted Holdstation into the light, marking a significant milestone. With a 30-day trading volume of approximately $44.1 million, Holdstation's effort to influence in this narrative is undeniable. The XAUUSD pair alone commands around 10.41% of this total volume, firmly establishing its significance alongside ETHUSD at 10.5%, and trailing only behind BTC at 17.75%.
Not stopping at that, Holdstation's DeFutures platform stands out with exceptionally low fees, charging a mere 0.01% for trading XAUUSD and OILUSD pairs. This new update, with a remarkable 5x reduction in trading fees for commodity pairs, has caused opening and closing fees to plummet from 0.05% to just 0.01%.
As a result, the weekly trading volumes for oil (OIL/USD) and gold (XAU/USD) have surged, accounting for 10.33% and 27.45% of the total volume in the last 7 days, respectively. These developments highlight Holdstation's commitment to providing users with cost-effective and efficient trading options for real-world assets.
The significance of this achievement cannot be overstated. By providing traders with access to real-world assets through a user-friendly and cost-effective platform, along with gas sponsorship - a feature of Account Abstraction (AA), Holdstation is spearheading a financial revolution that bridges the gap between traditional finance and DeFi. Users can now engage in trading activities that were previously reserved for traditional markets, all within the decentralized and inclusive ecosystem.
Holdstation's approach to the trading of real-world assets signifies a pivotal moment in the realm of decentralized finance, heralding a new era of trading practices. Holdstation's innovative approach ensures continuous trading, even during periods when traditional markets are closed. This heightened flexibility opens doors for traders to access these assets outside regular trading hours, unlocking a spectrum of new opportunities and broadening the horizons of DeFi.