The more RWA on-chain projects I’ve been seeing lately, the more I feel there’s a bit of a “liquidity illusion.” On-chain you can see a bunch of TVL, and trades can be placed as orders—but when it actually comes time for everyone to want to redeem at the same time, it’s those terms in the fine print—like “T+X days,” the “window period,” and “redeem can be paused”—that are the real constraints. To put it plainly, what you might be buying isn’t liquidity you can walk away from anytime; it’s a rule-bound queue ticket. The whole incentive-driven TVL-hunting approach from new L1/L2s is pretty similar: once more people start “mining,” it becomes “mine, then sell,” so the data looks lively, but the friction left behind becomes even more obvious.

In any case, I’m just a more conservative type. I treat my RWA allocation as a low-correlation add-on: only get in if I can understand the redemption terms, stretch the cycle and reduce the amount. What I fear most is mistaking “redeem-ability” for the default option.