Lately I've been seeing a bunch of RWA on-chain projects hyping up "on-chain liquidity," but I'm starting to have some doubts: a lot of the liquidity is actually just market making + subsidies creating a lively scene. When it comes time for you to redeem, the terms are what really lock you in. To put it simply, don’t just look at whether you can sell that token on a DEX; you need to check the redemption window, whether redemptions can be paused, KYC trigger conditions, minimum redemption amounts, who has the authority to change the rules… these permissions are like keys to the door, whoever holds them is crucial.

By the way, Layer 2s are constantly arguing over TPS, fees, and ecosystem subsidies, but for something like RWA, those small fees don’t really matter. What matters is whether you can get your money back as agreed. My current approach is pretty old-fashioned: first, read the redemption terms as if it’s a contract; then check if the admin permissions include multi-signature or one-click freezing; only after that do I consider whether to get involved. I’d rather miss out on the hype than risk getting caught in a trap.