Moderator: Harsh (BD manager @R2)

Speakers:

• Wilguish (Head of Ecosystem @pharos_network)

• Jerry Yu (VP @CicadaFinance)

• Sawyer (Growth Lead @APRO_Oracle)

• Aniket (BD manager @R2)

1. What unlocks the real utility for RWAs on-chain?

• The future of DeFi lies in RWAs + DeFi, enabling programmable financial products like yield-bearing stablecoins and on-chain credit, with a focus on native settlement, compliance, and bridging TradFi and DeFi for seamless liquidity. (Wilguish)

• RWAs become truly useful when they are programmable and dynamic in DeFi. Reliable data infrastructure like decentralized oracles is key for real-time pricing, verification, and ownership. (Sawyer)

• Composability, interoperability, and user-centric design are essential. Cicada’s rebalance mechanism and asset management drive seamless integration and sustainable yields in DeFi. (Jerry)

• Usability in DeFi means composability (e.g., lending, borrowing, AMMs). Liquidity fragmentation across chains is a challenge, requiring standardized bridging for easy access without UX complexity. (Aniket)

2. What are the essential elements of transparency and auditability for bringing real-world value on-chain?

• Transparency needs decentralized oracles (like APRO’s) for tamper-proof, real-time data from trusted sources, using models like TVWAP to prevent manipulation and ensure accurate pricing. (Sawyer)

• Transparency requires on-chain verification, multilayered audits, decentralized oracles, regular audit reports, transparent smart contracts, and decentralized governance for trust and compliance. (Jerry)

• Users need clear visibility into asset backing, yield sources, and risk management. On-chain reports, audits, and oracle integration for off-chain data are essential for transparency. (Wilguish)

• Full transparency means users must know asset backing, yield origins, and risk management. Oracle integration, on-chain reports, and regular audits ensure custodians fulfill their promises. (Aniket)

3. How do you approach designing sustainable, transparent, and programmable yield mechanisms for tokenized assets?

• Cicada combines real yield from RWAs and crypto, dynamic rebalancing, transparent audits, and user-friendly smart contracts for sustainable, verifiable yields. (Jerry)

• Focuses on fixed-income assets like bonds to ensure predictable yields, using DeFi tools (lending, looping) and stablecoin strategies for sustainable returns. (Wilguish)

• R2 leverages tokenized assets (e.g., T-bills) and looping strategies to amplify yield while connecting it to real cash flows. (Aniket)

4. How should teams deploy RWA products across multiple chains while preserving security and capital efficiency?

• Interoperability and shared infrastructure (like APRO’s Data Layer) ensure consistent pricing, validation, and capital efficiency across chains. (Sawyer)

• Multi-chain deployment is key, using canonical bridges, standardized tokens, and concentrated liquidity pools to maintain liquidity and reduce slippage. (Wilguish)

• Use interoperable standards (e.g., Chainlink’s CCIP), cross-chain pools, secure bridges, and unified governance to maintain coherence and capital efficiency. (Jerry)

• Solve liquidity fragmentation with bridging standards (e.g., LayerZero, Wormhole) to ensure secure, seamless token movement across chains. (Aniket)

5. Can teams balance regulatory compliance, user-friendliness, and yield attractiveness?

• Uses CeFi-DeFi hybrid models with KYC/AML, intuitive UX (like Cicada’s asset management), and LTRT rebalancing for stable, RWA-backed yields. (Jerry)

• R2 offers compliant tokenized assets, easy UX for deposits/loans, and 10-15% sustainable yields via diversified RWA baskets. (Aniket)

• Feeder funds and yield-bearing stablecoin aggregators (like R2) simplify compliance and UX while offering attractive yields through curated, permissioned assets. (Wilguish)

6. What will the ideal user journey for RWAs look like in 2027 in terms of UX and yield?

• By 2027, users will earn yields from tokenized assets (e.g., T-bills, real estate) through intuitive apps with transparent pricing, powered by reliable data and seamless UX. (Sawyer)

• Users will engage with RWAs seamlessly on-chain, with no distinction between Web2 and Web3, driven by easy onboarding and features like stablecoin aggregators and on-chain stock trading. (Wilguish)

• The ideal experience will feature intuitive UX, abstracted KYC/compliance, transparent asset verification, modular yield engines, and smooth cross-chain liquidity without bridging issues. (Aniket)

A massive thank you to Wilguish, Jerry Yu, Sawyer, and Aniket for dropping their invaluable insights! 🙌 We’ve got more exciting guests lined up for the next AMA, so stay tuned!