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Discover the Future of Passive Income with NodePay: Opportunities and Risks

Discover the Future of Passive Income with NodePay: Opportunities and Risks

The world of decentralized finance (DeFi) continues to evolve, presenting innovative ways to harness unused resources. Among the most promising entrants is NodePay, a platform that transforms idle internet bandwidth into a revenue-generating asset. If you’ve ever wondered how to earn passive income without additional work, NodePay could be the opportunity you’ve been seeking. However, as with any new technology, understanding its benefits, risks, and practical applications is essential.

What Is NodePay?

NodePay is a blockchain-powered network that enables users to share their unused internet bandwidth with AI companies and organizations. By doing so, participants contribute to critical tasks like AI model training, distributed computing, and data processing. In return, they earn cryptocurrency rewards proportional to their shared bandwidth, making it a win-win scenario for contributors and businesses alike.

Why NodePay Stands Out

NodePay combines the DeFi and AI sectors, creating a unique value proposition. Here’s what makes it noteworthy:

  1. Decentralized Bandwidth Marketplace: Unlike traditional centralized providers, NodePay creates a transparent, blockchain-driven platform where AI companies can access bandwidth for their needs.
  2. User-Friendly Setup: With a simple web extension, users can easily create accounts and activate their nodes, making bandwidth-sharing accessible even to non-tech-savvy individuals

Passive Income: NodePay allows users to earn without technical expertise or active involvement. The more bandwidth you share, the more you earn.Privacy Emphasis: Through encryption and blockchain technology, NodePay ensures that your personal data remains protected, with no exposure to third parties​.

Is It Safe?

NodePay prioritizes user privacy and security. Data shared via the network is encrypted, and personal information remains inaccessible to participating businesses. However, users should remain vigilant as all DeFi platforms carry inherent risks. The value of rewards (in cryptocurrency) is subject to market volatility, which may impact earnings. As with any software, it is important to consider the possibility of undiscovered security vulnerabilities.

Resource Demands: What to Expect

  1. CPU Usage: NodePay runs efficiently in the background, exerting minimal strain on your device. It’s unlikely to disrupt everyday usage unless you’re using older hardware.
  2. Bandwidth Sharing: Participants retain control over how much bandwidth they allocate to NodePay. By setting appropriate limits, you can ensure that your regular internet activities remain unaffected.

Risks to Consider

While NodePay offers exciting prospects, it’s not without its challenges:

  • Bandwidth Constraints: Sharing too much bandwidth may slow your internet connection, especially for users with limited or capped plans.
  • Earnings Volatility: Since rewards are in cryptocurrency, their value can fluctuate significantly, potentially impacting your passive income.
  • Device Dependence: To maximize rewards, users are encouraged to keep their devices connected and running, which may increase power consumption.

Getting Started

  1. Install the NodePay Extension: Visit this page.
  2. Set Up Your Account: Create a profile to access your dashboard and manage settings.
  3. Activate Your Node: Start sharing bandwidth and watch your earnings grow.
  4. Optimize Settings: Experiment with bandwidth limits to balance earnings with internet performance.

Summary

NodePay represents a groundbreaking intersection of blockchain and AI, offering a glimpse into the future of decentralized resource sharing. For those with unused bandwidth and a curiosity for crypto rewards, it’s a compelling opportunity. However, it’s vital to weigh the risks, monitor resource usage, and stay informed about market trends.

Whether you’re an early adopter eager to explore innovative income streams or a cautious observer weighing the trade-offs, NodePay is undoubtedly a platform worth watching as it pioneers a new frontier in decentralized finance.

Why People Love the Risk of Rug Pulls: The Thrill Behind High-Stakes Crypto

Why People Love the Risk of Rug Pulls: The Thrill Behind High-Stakes Crypto

The crypto world is infamous for its unpredictability, and few phenomena capture this chaos like rug pulls—projects designed to siphon funds from unsuspecting (or fully aware) participants. Despite the inherent risks and countless cautionary tales, thousands of people continue to flock to these schemes. Why? The answer lies in a fascinating mix of psychology, market dynamics, and cultural norms.

The Psychology Behind Risky Decisions

1. The Thrill of Risk

Many rug pull participants experience an adrenaline rush akin to gambling. The opportunity to make outsized returns in a short time—despite the odds—triggers excitement and engagement. The risk itself becomes part of the appeal, a game to beat before the inevitable collapse.

2. Fear of Missing Out (FOMO)

FOMO drives much of crypto investing, but it’s particularly potent with rug pulls. Seeing others boast about massive gains in questionable projects can be hard to ignore. Even if investors recognize the risk, they’d rather take a chance than feel left out.

3. Overconfidence in Outrunning the Collapse

Rug pulls operate like a ticking time bomb, and participants often believe they can outsmart the system. This overconfidence leads them to think they’ll be among the first to cash out, leaving the losses for others to absorb.

4. The “Greater Fool” Mentality

Some knowingly enter rug pulls with the belief that they can sell their tokens to someone even less informed or more reckless. This greater fool theory perpetuates the cycle, as participants gamble on being smarter than the next person.

Rug Pulls as Gambling: The Addiction to Speculation

Crypto markets have gamified investing, blurring the lines between financial activity and gambling. Rug pulls amplify this dynamic:

  • Dopamine Hits: The act of placing a risky bet and watching its potential payoff stimulates dopamine production, creating a cycle of anticipation and excitement.
  • High-Risk, High-Reward: The potential for life-changing gains in minutes or hours keeps people hooked, even if they know the odds are against them.
  • The Cost of Playing: Many participants justify losses as the “price of admission” to the crypto casino, normalizing the risk of being rugged.

Social Proof and Herd Behavior

1. Influencer Hype

Crypto influencers and anonymous accounts often hype questionable projects, intentionally or otherwise, creating a perception of legitimacy. Seeing a community rally behind a project can validate decisions to participate, even when red flags are obvious.

2. Herd Mentality

When everyone else seems to be rushing into a project, the fear of being left behind can cloud judgment. Herd behavior drives participants to ignore risks, reasoning that they can’t all be wrong.

Rationalizing Losses

Even after losing money, participants often remain undeterred. Here’s why:

  • Normalization of Scams: In the fast-paced world of crypto, scams like rug pulls are often viewed as a natural part of the game.
  • Optimism Bias: Many believe the next gamble will be different and that they’ll finally strike it big.
  • Social Validation: Sharing losses with others who’ve experienced the same reinforces the idea that it’s just part of the crypto journey.

Why Losing Might Even Be Part of the Thrill

Interestingly, for some, the possibility of losing might add to the emotional high. Similar to gamblers chasing their next big win, the ups and downs of rug pulls can become addictive, overshadowing rational decision-making. It’s not the loss itself they seek but the rush of being part of the game.

What Does This Mean for the Future?

Understanding why people engage in rug pulls highlights a deeper need for education and safeguards in the crypto space. While speculative behavior will always exist, creating systems that reward long-term value and transparency could shift the focus away from get-rich-quick schemes.

Conclusion

Rug pulls are a wild, high-risk game that shows how speculative crypto markets can be. People jump in for the thrill, hoping to outsmart others or just to chase a quick profit. But the mix of FOMO, overconfidence, and the normalization of scams makes it easy to get caught up in the frenzy. By understanding why we take these risks, we can make smarter decisions and focus on more sustainable opportunities in the long run.

Backed by Blockchain Heavyweights Oasis Aims to Dominate the Privacy Narrative

Backed by Blockchain Heavyweights Oasis Aims to Dominate the Privacy Narrative

What Is the Oasis Network?

The Oasis Network ($ROSE) is a Layer 1 blockchain designed with a dual focus on privacy and scalability, aiming to enable secure decentralized finance (DeFi) and real-world applications. Unlike many blockchains primarily targeting DeFi or NFTs, Oasis prioritizes data privacy for sensitive use cases such as healthcare, finance, and identity management.

Oasis employs a modular architecture with two key layers:

  1. Consensus Layer: A secure and decentralized proof-of-stake system.
  2. ParaTime Layer: A flexible layer for parallel computation, allowing developers to create specific environments (e.g., for privacy, scalability, or Ethereum compatibility).

This design makes Oasis one of the few networks optimized for confidential computing and scalable DeFi.

What Makes the Oasis Network Stand Out?

1. Privacy-First Design
Oasis enables confidential smart contracts using tools like Cipher ParaTime, ensuring sensitive data remains encrypted while being processed. This makes the network attractive for use cases requiring regulatory compliance or sensitive data handling.

2. Parallel Processing
With its ParaTime Layer, the network supports simultaneous transaction processing, reducing bottlenecks and gas fees. Developers can build custom ParaTimes tailored to specific needs, such as DeFi scalability or privacy preservation.

3. Enterprise and Real-World Utility
Through its Parcel SDK, Oasis empowers data tokenization and secure data storage, enabling enterprises to adopt blockchain without sacrificing privacy. Real-world partnerships, such as collaborations with Binance and Fortune 500 companies, highlight its enterprise appeal

4. Ecosystem Accessibility
Oasis is EVM-compatible via its Emerald ParaTime, allowing Ethereum developers to migrate their projects with minimal friction.

Backers and Support

Oasis Network boasts strong backing from major institutional investors:

  • Andreessen Horowitz (a16z)
  • Binance Labs
  • Polychain Capital
  • Pantera Capital
    These backers reflect confidence in the network’s vision and its potential to lead privacy adoption in blockchain

Oasis has also partnered with leading industry players like Chainlink and Meta (Facebook), further validating its potential as a privacy-centric solution for data-driven industries.

Competitors

1. Secret Network ($SCRT): A direct competitor with a similar focus on privacy but uses Trusted Execution Environments (TEEs) as its core mechanism for private smart contracts.
2. zkSync and StarkNet: These Layer 2 solutions focus on scalability and privacy via zero-knowledge proofs but lack the enterprise-level privacy infrastructure Oasis offers.
3. Solana and Avalanche: While these Layer 1s compete in scalability, they do not prioritize privacy.

Oasis’s combination of modular scalability, privacy features, and real-world focus distinguishes it from these competitors.

Why Oasis Has a Chance at the End of the Bull Run

In the later stages of a bull run, market attention often shifts from speculative, high-risk projects (e.g., meme coins) to utility-driven solutions. Oasis is uniquely positioned to capitalize on this trend due to its focus on privacy and real-world applications:

1. Privacy as a Narrative

  • As the market matures, demand for privacy in DeFi and dApps grows, especially as institutional interest rises. Oasis offers privacy-preserving tools natively, which could make it the blockchain of choice for secure applications.
  • Increased regulatory scrutiny in Web3 could further push developers toward blockchains like Oasis that offer compliance-friendly privacy features.

2. Underdeveloped Competition

  • Oasis’s closest competitor in the privacy space is Secret Network, but its modular ParaTime architecture and scalability could give it an edge in attracting developers.

3. Institutional and Enterprise Appeal

  • Real-world use cases such as tokenized data and private smart contracts could drive late bull-run interest from enterprises and DeFi protocols. Partnerships with ecosystems like Chainlink further solidify its utility.

4. Current Undervaluation

  • With a relatively low Total Value Locked (TVL) compared to other Layer 1s, Oasis is still under the radar for many investors. As privacy narratives gain traction, the network could experience significant growth.

Potential Challenges

While Oasis has strong fundamentals, several risks could hinder its adoption:

  • Low Ecosystem Development: Currently, Oasis has limited dApps and DeFi protocols compared to leading blockchains.
  • Market Competition: Other Layer 1s or privacy-focused networks could outpace Oasis if they secure stronger narratives or user bases.
  • Awareness Gap: A lack of strong marketing and community engagement might slow adoption, especially during high market competition.

Conclusion

Oasis Network ($ROSE) is a standout project in the blockchain space, combining privacy, scalability, and enterprise utility. While it currently flies under the radar, its focus on real-world adoption and the growing demand for privacy solutions position it as a top contender for success in the latter stages of the bull market.

How the Narratives Will Shift During This Bull Cycle – 2025

How the Narratives Will Shift During This Bull Cycle – 2025

TLDR: How the Crypto Narratives order might play out

  • Early-Cycle: Institutional adoption → Layer-2 scaling.
  • Mid-Cycle: RWA tokenization → DeFi renaissance.
  • Late-Cycle: AI integration → Meme coins comeback → Gaming/Metaverse → Privacy.
  • Shifting Focus: The narrative order shifts from infrastructure and adoption to speculation and hype, as early-stage trends mature and new speculative trends take hold.

Each bull cycle has its own rhythm, and understanding the order in which narratives emerge helps investors and enthusiasts better position themselves for success. Whether it’s the infrastructural advancements of Layer-2s or the speculative highs of meme coins, knowing when to focus on each narrative can make a significant difference.

Emerging Narratives in the Next Crypto Bull Cycle: The Order of Events and Key Trends

As the cryptocurrency market braces for its next bull cycle, investors and enthusiasts are eager to identify which narratives will dominate the landscape. The last few bull runs saw a variety of trends, from the rise of Bitcoin ETFs to the explosion of decentralized finance (DeFi) protocols. But what’s next? What trends and narratives will capture the imagination of the market in the upcoming cycle?

Understanding the order in which these narratives emerge and evolve is crucial for anticipating where market capital may flow. Each phase of the bull cycle typically experiences a distinct shift in focus—from foundational infrastructure and institutional adoption to more speculative, high-risk trends driven by retail investors. Below is a deep dive into the most likely narratives to shape the next crypto bull cycle, explaining how and why the order is likely to shift over time.

1. Institutional Adoption of Crypto

The first and most critical narrative to shape the early stages of a bull market is institutional adoption. As major financial players—such as banks, hedge funds, and large asset managers—start to integrate crypto into their portfolios, confidence in the market grows. Institutional adoption signals that cryptocurrency is not just a speculative asset but a legitimate part of the global financial system.

In this early stage, we will likely see developments such as:

  • Approval of Bitcoin and Ethereum ETFs by regulatory bodies like the SEC.
  • Increased allocations in crypto by institutional investors such as BlackRock, Fidelity, and MicroStrategy.
  • More corporate treasury strategies incorporating digital assets.

Once institutional money flows in, the market has the liquidity and backing to support further development.

=======> As of today, we are currently more or less at this stage <=======

2. Layer-2 Ecosystems and Scaling Solutions

Once institutional adoption gains momentum, the next narrative that emerges is the need for scalability—a natural progression in a growing market. Ethereum’s soaring gas fees during the last bull run exposed the limitations of existing blockchain infrastructures. Layer-2 solutions (like Arbitrum, Optimism, and zk-Rollups) have quickly gained traction as solutions to these problems, offering faster, cheaper transactions without sacrificing security.

In the early to mid-bull cycle, as transaction volumes increase, Layer-2 solutions will become a focal point. This is critical for:

  • Enabling mass adoption by reducing costs and improving efficiency.
  • Driving decentralized applications (dApps), including DeFi and NFTs, to new heights by making them more accessible to users.

Layer-2 ecosystems are thus positioned to fuel the next phase of growth in the crypto space, facilitating broader use cases for crypto products and services.

3. Real-World Asset (RWA) Tokenization

As the infrastructure for crypto grows, the next trend will be Real-World Asset (RWA) Tokenization. Tokenizing traditional assets—such as real estate, stocks, and bonds—onto the blockchain will revolutionize how assets are traded and transferred. This bridges the world of traditional finance and crypto, potentially bringing trillions of dollars worth of value into the crypto ecosystem.

In this phase, we can expect:

  • Institutional players such as banks and asset managers working with tokenized assets.
  • The rise of regulated tokenization platforms offering real-world asset-backed cryptocurrencies.
  • Legal and regulatory clarity emerging around tokenizing real estate, securities, and other traditional assets.

This mid-cycle narrative offers a more stable, real-world application for crypto, attracting large-scale institutional investors who are more likely to adopt tokenized assets for their portfolios. It will serve as a bridge to broader acceptance and adoption of crypto beyond speculative markets.

4. Decentralized Finance (DeFi) Renaissance

After the rise of institutional adoption and tokenized real-world assets, the DeFi renaissance will dominate. Decentralized finance has already proven to be one of the most disruptive forces in the crypto world, and in the next cycle, DeFi 2.0 will likely emerge, with new protocols and financial products that continue to innovate on the original DeFi vision.

This narrative will see:

  • New decentralized exchanges (DEXs) and lending protocols, such as Aave, Uniswap, and Curve.
  • Synthetic assets and derivatives becoming more mainstream (ENA).
  • The rise of decentralized stablecoins, yielding platforms, and innovative yield farming mechanisms.

The maturation of DeFi will provide a major value proposition for the crypto market, offering real-world financial tools that can be used globally. As the market continues to mature, decentralized finance becomes an essential narrative for retail investors and institutional players alike.

5. AI and Crypto Integration

By the late stages of a bull market, AI and crypto integration will emerge as an exciting narrative. This could take various forms, from AI-powered NFTs to decentralized AI platforms that allow anyone to leverage blockchain for machine learning and artificial intelligence tasks.

The excitement around AI has grown rapidly, and as the bull cycle matures, the market will likely start experimenting with:

  • Decentralized AI services built on blockchain, allowing users to monetize their computing power.
  • AI-driven NFT projects that offer dynamic, evolving digital assets.
  • Projects like SingularityNET and Fetch.ai that integrate AI with blockchain for decentralized autonomous systems.

This late-cycle narrative tends to be more speculative, driven by the desire to invest in the next big thing. AI in crypto is exciting and futuristic but remains a niche use case for now, even if it gains considerable attention during the peak of a bull cycle.

6. Meme Coins and Community-Driven Tokens

It’s hard to imagine a crypto bull cycle without the return of meme coins like Dogecoin, Shiba Inu, and other community-driven tokens. Though meme coins initially exploded in popularity at the start of this bull cycle, they are likely to experience a comeback toward the end again.

Meme coins often thrive in the final speculative push, where retail investors become highly active in the market. As the bull cycle matures, meme coins will see:

  • Increased speculation and price surges driven by social media hype and community efforts.
  • A final retail rally that pushes prices higher in the latter stages of the bull cycle.

Meme coins have always been a part of the narrative when market sentiment is exuberant, and in the final stages of the bull cycle, they provide retail investors with a high-risk, high-reward opportunity.

7. Gaming and Metaverse Comeback

Gaming and the metaverse have already seen hype waves in previous cycles, but the comeback of this trend will likely occur toward the mid-to-late stages of the next bull market. Expect more polished, user-friendly gaming experiences that integrate blockchain for in-game economies, NFTs, and cross-platform interoperability.

The metaverse will continue to evolve as a concept, with:

  • New gaming ecosystems leveraging blockchain technology to allow players to earn and trade digital assets.
  • A resurgence in virtual worlds, where players can buy, sell, and trade land, digital goods, and NFTs.

The gaming and metaverse sectors will gain traction when better user experiences emerge and market interest in speculative trends wanes.

8. Privacy and Decentralization Narratives

As the market matures, privacy coins and tools that support decentralization will become increasingly important. This narrative is likely to come to the forefront in the later stages of the bull cycle, when there are concerns about regulation and surveillance.

Privacy projects like Monero, Zcash, and Tornado Cash will rise in importance as users demand greater sovereignty over their data and transactions. These tools will become central to the decentralization ethos that crypto is built on, especially when the market reaches its peak.

However, with the new administration in place, that trend might not be of concern.

Risks to Consider in the Next Crypto Bull Cycle

While the emerging narratives in the upcoming bull cycle present tremendous opportunities, they are not without significant risks. These risks are tied to both the inherent volatility of the crypto market and the evolving nature of these trends.

  • Regulatory Uncertainty: As institutional adoption and RWA tokenization gain traction, they will attract greater regulatory scrutiny. Governments around the world are still figuring out how to regulate digital assets, and new regulations could stifle growth or create compliance burdens for projects and investors.
  • Technological Risks: The evolution of Layer-2 scaling solutions, AI integration, and decentralized finance (DeFi) depends heavily on technological progress. Issues such as security vulnerabilities, network congestion, and protocol failures could derail adoption or lead to substantial financial losses.
  • Speculative Bubbles: Meme coins, AI-powered projects, and gaming/metaverse narratives are particularly vulnerable to market speculation. These sectors can quickly experience parabolic price increases driven by hype, only to crash when market sentiment shifts. The final speculative rally can be especially risky, as retail investors may get swept up in the excitement without understanding the underlying value.
  • Market Saturation: As more players enter the crypto space, the risk of market saturation increases, particularly in areas like DeFi, NFT marketplaces, and tokenized assets. Too many projects competing for attention may lead to overcrowded sectors, making it harder for any one project to dominate and reducing potential returns.
  • Adoption Delays: While many of these narratives show immense promise, mass adoption is often slower than anticipated. Blockchain technologies can face significant hurdles related to user experience, network adoption, and education. Delays in the widespread use of DeFi or the tokenization of RWAs could slow down the overall market growth.

Investors should be cautious and conduct thorough due diligence as they navigate these trends. While the rewards can be substantial, the risks are equally high, and the market’s volatility demands a careful and strategic approach to capital allocation.

Lastly, this bull run will be like a game of musical chairs. Don’t hesitate to take profits—others might not, and you could find yourself holding the bags.

2024/2025 crypto bull run – Is Ethereum in the race?

2024/2025 crypto bull run – Is Ethereum in the race?

The crypto bull run is gaining momentum, with all eyes on Bitcoin. However, memecoins are stealing attention, boosting the Solana ecosystem. Memecoins are popular for onboarding new users, as they promise quick or life-changing gains. The thrill of trading them feels like a casino rush, driving their appeal.

Traditionally, bull runs start with money flowing into Bitcoin, then large-cap altcoins, small caps, and finally memecoins and NFTs. This time, it’s different. The run began with Bitcoin, followed by a mix of last cycle’s large caps (Algorand, XRP, Cardano) and memecoins.

While the Base ecosystem seemed ready to lead the memecoin mania, Solana overtook it with the success of PumpFun.

Many crypto “influencers” are even speculating that a utility coin-driven bull run might not materialize this cycle, casting doubt on Ethereum’s potential for significant gains. As we know, smart money often accumulates undervalued or less visible coins with strong narratives and high success potential. Whenever a coin is being shilled on twitter or Youtube, it’s very important to do an extensive research and assess if it’s too late to get in.

Comparing Ethereum and Solana

Let’s compare Ethereum and Solana ecosystems to understand wether Ethereum is underperforming:

As of 20 November 2024

PriceFDVVolume (24h)Circulating supplyTVL
Ethereum3100$373b28b120M59b
Solana234$111b6.9b474M8b

We can see that Solana has approximately four times more tokens in circulation than Ethereum. If Solana had four times fewer tokens in circulation to match Ethereum’s supply, its price could be closer to $1,000 (474/120×234=924$). When considering the supply factor, we can see that Ethereum is around 3 times more expensive than Solana (3100 vs 924).

Let’s see if Ethereum’s performance justifies being 3 times more expensive than Solana.

Performance comparison

Latest revenuHighest revenuTransactions
EthereumAround 3M per dayAround 203M per day (2022)Around 1M per day
SolanaAround 5M per dayAround 5.5M per day (2024)Around 51M per day

If we compare the total value locked, we can see that it is 7 times higher on Ethereum than on Solana. This suggests that Ethereum is viewed as a more trusted chain, where institutions prefer to park assets with fewer transactions but larger amounts. The total value locked will increase rapidly as Ethereum gains in value.

The number of transactions on Solana is currently 51 times higher than Ethereum, however the revenue is only around 2 times higher (As of 20 november 2024 – with all the memecoin mania). While this cements Solana as a leader in transaction throughput, we can view this differently as it takes much more effort on Solana to produce the same revenue. We are also not taking into account all the bundled transactions that are validated on Ethereum through the different Layer2 solutions.

Another factor to consider is that Ethereum set a record revenue of $203 million in a single day in 2022, according to DeFiLlama. While this level of revenue may not be repeated anytime soon—especially with the Dencun upgrade and fee adjustments—it sets a significant milestone for Ethereum’s potential compared to Solana.

Memecoin mania

The memecoin mania will likely shift to other blockchains, particularly Ethereum L2s, as they attract fresh users with lower fees and faster transactions. However, this hype will probably fade toward the end of the bull run. Solana will face significant competition for memecoins in the short term and will need to pivot to new narratives, such as AI, to maintain its performance edge. While it’s likely that the memecoin craze will end with many investors losing money and realizing they were shilled on, the overall hype will eventually subside. This gives a direct strategic advantage to Ethereum.

Both Ethereum and Solana are strong projects that are likely to perform well during the bull run. However, it’s important to understand that the capital flowing into crypto can’t chase all projects at once. Money will rotate between different projects, selecting winners and losers, and shifting narratives multiple times along the way. Investors will aim to profit from the highs and lows of each rotation, ultimately exiting when the bull market begins to fade.

This is why it’s crucial not to fall for narratives or become emotionally attached to a project. Conducting your own research is essential to understand why certain narratives are being pushed and fed to you daily, often obscuring other potential opportunities.

Real world Assets (RWAs) – The new narrative

Real world Assets (RWAs) – The new narrative

Real World Assets are physical assets, like real estate, commodities, shares, and artwork, that are represented digitally on a blockchain. By converting these assets into digital tokens, investors can buy, sell, and trade smaller portions. This makes previously exclusive asset classes more accessible. This model of fractional ownership broadens access to high-value assets, enabling individuals to invest in items that would typically necessitate significant capital, which in turn enhances investment opportunities.

Tokenized real-world assets (RWAs) offer several significant benefits, such as enhanced liquidity, increased efficiency, and improved transparency. Traditional assets often suffer from illiquidity, making cash conversion challenging. However, tokenization allows these assets to be traded on digital platforms, facilitating quicker and more accessible transactions. The use of blockchain technology provides clear record-keeping and automates processes with smart contracts. It reduces the dependence on intermediaries, cuts costs, and fosters trust. Furthermore, RWAs create new opportunities for diversifying portfolios, giving investors options to allocate risk beyond conventional stocks and bonds.

Despite these benefits, RWAs come with challenges, including regulatory hurdles, valuation difficulties, and security concerns. Different jurisdictions regulate tokenized assets in various ways, creating compliance complexity, and accurately pricing RWAs remains tricky due to their real-world dependencies. Nonetheless, RWAs have the potential to reshape finance, merging traditional and digital markets, increasing global market access, and providing blockchain with practical, real-world applications that could revolutionize investment practices.

We will look at 3 different projects in the space.

Ondo finance

Ondo Finance is a DeFi platform that bridges traditional finance with blockchain by offering tokenized versions of real-world assets, such as U.S. Treasury bills and corporate bonds. This allows investors to access stable, yield-generating financial products within the crypto ecosystem, providing lower-risk, fixed-income opportunities compared to typical DeFi products. By tokenizing these assets and managing them with smart contracts, Ondo enhances accessibility, transparency, and efficiency for both retail and institutional investors, aiming to create a compliant, stable link between conventional finance and decentralized markets.

Ondo is deployed on several blockchain such as Mantle and Ethereum. The treasury bills native tokens (USDY and OUSG) can be bridged from one chain to another and used in DEFI to earn an additional yield.

Mantra

While Ondo’s goal is to tokenize real world assets into tokens, Mantra offers a layer1 solution customized for RWAs. Its goal is to simplify the adherence to regulatory requirements. Mantra is built using the Cosmos sdk and offers ready made modules that developers can build on or leverage such as a compliance ID which offers a single solution for all Mantra Apps for KYC solutions.

Mantra integrated Ondo‘s USDY token and offers it as a genesis asset throughout the blockchain.

Anzen

Anzen Finance specialize in real-world lending, focusing on integrating real-world assets (RWAs) into the DeFi ecosystem. Its goal is to provide stable, yield-generating opportunities. By connecting blockchain-based lending with traditional financial instruments, like loans backed by U.S. Treasury bills or other secure assets, Anzen aims to offer a safer, more predictable alternative to typical crypto-based lending platforms. Any user can provide liquidity to Anzen which will be used to power real world secured loans. Anzen partnered with Ondo by backing part of its reserve with tokenized security deposits backed by Ondo’s token.

Anzen offer a stable coin USDz on several chains (Ethereum, Arbitrum, base, etc…) that is backed by real loans and other financial assets. USDz can be staked to earn around 15% yield. Anzen also offers different strategic vaults and earn additionnal yields by locking your coins for a period of time.

Anzen has presently an airdrop opportunity. All you have to do is hold USDz to start accumulating points. You can buy it directly from Anzen or swap into it on any dex like jumper. If you use your USDz in DEFI on platforms like Aerodrome or Ionic, you can earn a multiplier on your liquidity.

Do not forget to do an extensive research before diving in, because holding USDz comes with risks. USDz can unpeg from real USD if any of the underlying loans has some default. Using USDz on DEFI platforms adds another layer of smart contract risk, impermanent loss, etc…