The RWA hype this round is pretty intense, but I’m honestly a bit worried about liquidity. To put it bluntly: when you move things like loans and mortgages onto the chain, the TVL looks like it’s rising—but how much actual buying and selling can on-chain trading volume really support? I’ve seen too many projects where the TVL is locked up tight, and the redemption terms are like a maze. Retail users walk in thinking they’ll be able to get out quickly, only to end up waiting half a day to leave. And in the meantime, they also get bitten by slippage and Peg issues.

Recently, a certain area raised taxes, and compliance has tightened up again—so a lot of people are getting jittery. People’s expectations around deposits and withdrawals have become especially sensitive. Think about it: if the redemption terms aren’t firm enough, liquidity is at best an illusion. Don’t just look at the surface-level locked positions—when you really want to run, you won’t even be able to make so much as a splash.

I’ve been researching “anti-getting-stuck” approaches lately, and I think for this kind of on-chain RWA, the main thing that should be protected against is the pitfalls in the “payout/redemption terms,” so don’t let paper wealth fool people. That’s it for now—let’s talk more if I come up with any ideas.