Recently, discussions about RWA on the blockchain have heated up again, and I keep stuck on one word in my mind: liquidity.

On-chain, it looks like you can exchange anytime, and the pools are quite lively, but honestly, much of it is a "liquidity illusion."
When large withdrawals happen, the terms suddenly flip: lock-up periods, queues, suspensions, or even price discounts...
Instantly, it’s back from DeFi’s speed to the slow pace of traditional finance.

These days, I’ve also seen many people rushing to testnet incentives, stacking points, and guessing whether the mainnet will issue tokens.
It’s not that it’s impossible, but don’t confuse “points” with “the ability to exit anytime.”
When expectations get high, risks tend to be automatically ignored.

I personally prefer low-frequency approaches, only engaging with a little bit if I understand the redemption terms and can accept the worst-case scenario.
Anyway, liquidity is an advantage in normal times, but when things go wrong, that’s when you realize if it’s an illusion or not.
Let’s leave it at that for now.