🚗 #GateSquareCommunityChallenge# Round 1 — Who Will Be The First To The Moon?
Brain challenge, guess and win rewards!
5 lucky users with the correct answers will share $50 GT! 💰
Join:
1️⃣ Follow Gate_Square
2️⃣ Like this post
3️⃣ Drop your answer in the comments
📅 Ends at 16:00, Sep 17 (UTC)
Recently, the tokenization of real-world assets (RWA) has become a hot topic in the investment community. To help investors better understand this emerging field, we have conducted an in-depth exploration of the three most common questions.
First of all, many people are concerned about whether ordinary investors have the opportunity to participate in RWA investments. The answer is yes. Currently, investors can purchase tokens linked to government bonds through specialized RWA platforms using USDC. This investment method has a relatively low threshold, with a minimum investment amount of only 100 USDC, and does not require complex qualification reviews; simple identity verification is sufficient to participate.
Secondly, in the face of relatively low yields from RWAs, investors may question their attractiveness. However, the advantages of RWA investment lie in its stability and compound interest effect. For example, if you invest 100,000 USDC to purchase government bond tokens, at an annual yield of 5%, the total principal and interest after three years could reach 116,000 USDC. In contrast, while the potential returns of cryptocurrencies like ETH may be higher, their volatility risk also significantly increases. Therefore, RWAs are particularly suitable for investors with lower risk tolerance.
Finally, regarding the issue of mixed collateral between RWA and crypto assets. In fact, this combination strategy is not only feasible but can also effectively balance risk and return. For example, investors can use $50,000 worth of government bond tokens and $50,000 worth of ETH as collateral, maintaining a 60% overall collateral ratio, which ensures the stability of the portfolio while enjoying higher returns. This strategy could potentially yield about $200 more per month compared to single asset collateral.
With the continuous development of the RWA market, investors' interest in this field is increasing day by day. Nevertheless, before making any investment decisions, it is recommended that investors fully understand the associated risks and make informed choices based on their own financial situation and risk preferences.