Over the past few years, the concept of “yield” in the on-chain world has been heavily simplified.

Many users have become accustomed to focusing on:

• How high the APY number is

• How fast rewards are distributed

• Whether funds can be withdrawn at any time

In the real world, however, yield is never created out of thin air.

It is always the result of risk, duration, and cash flows.

When allocating capital to real-world assets (RWAs), the core questions are never:

"What yield number can you offer?"

But rather:

• Where does the yield come from?

• How long is the asset duration?

• Are redemption rules clearly defined?

• Does the structure still hold under stress scenarios?

R2's goal is to bring these questions back to the center of the conversation.

In traditional financial systems, stable and explainable yield primarily comes from a few asset categories:

• Extremely low risk

• Transparent returns

• Strong liquidity

• Limited upside over the long term

Treasuries serve as a yield anchor, not a yield amplifier.

Including:

• Short-term corporate bonds

• Senior secured loans

• Trade finance instruments

Key characteristics:

• Higher yield than Treasuries

• Risk depends on:

  • Duration

  • Collateral structure

  • Borrower quality

These assets form the backbone of most medium-risk, medium-return portfolios.

• LATAM and Asia-focused credit

• SME financing

• Assets backed by real operating cash flows

These assets:

• Require stricter duration and redemption constraints

• Are not designed for frequent entry and exit

• Can provide stable returns when structured properly

Many assume the main challenge with RWAs is asset quality.

In practice, we have found the opposite to be true.

RWAs are not short of assets, they are short of usability.

The most common issues are:

• Mismatch between asset duration and user expectations

• Unclear or inconsistent redemption rules

• Fragmented risk disclosures

• Users not fully understanding what they actually hold

This is why many RWA products that look attractive on paper struggle to achieve real adoption.

R2 is not a protocol designed to "invent yield."

What R2 is building can be summarized in three parts:

R2 Vaults are not designed to chase maximum APY.

They are built around:

• Short- to mid-duration assets

• Clearly defined redemption rules

• Traceable and explainable cash flows

So users can clearly understand: What their capital is doing.

Beyond user-facing Vaults, R2 operates at a deeper layer:

• Working directly with asset managers and issuers

• Bringing real-world yield on-chain

• Providing standardized execution and settlement frameworks

This positions R2 not just as a front-end product, but as yield execution infrastructure.

R2 currently focuses on underlying assets from:

• The United States

• Latin America

• Asia

These regions share common characteristics:

• Clear legal and financial frameworks

• Mature short-duration credit markets

• Existing, real demand for yield

Across all products and partnerships, R2 adheres to a set of consistent principles:

• We do not promise yield that cannot be explained

• We do not obscure asset duration

• We do not sell liquidity illusions

• We do not treat short-term incentives as long-term returns

Yield is not a marketing slogan. It is the outcome of system design.

Real-world yield is not a new concept.
It has existed within traditional financial systems for decades.

R2 is not trying to invent yield. Instead, we aim to:

Bring existing, explainable yield to the users and endpoints that need it, in a more transparent, usable, and simplified way.

What ultimately matters is not how high the yield is, but:

• Where it comes from

• How risk is constrained

• Whether users understand what they hold in all market conditions

R2 will continue building around these principles, rather than chasing short-term numbers.

Over the past few years, the concept of “yield” in the on-chain world has been heavily simplified.

Many users have become accustomed to focusing on:

• How high the APY number is

• How fast rewards are distributed

• Whether funds can be withdrawn at any time

In the real world, however, yield is never created out of thin air.

It is always the result of risk, duration, and cash flows.

When allocating capital to real-world assets (RWAs), the core questions are never:

"What yield number can you offer?"

But rather:

• Where does the yield come from?

• How long is the asset duration?

• Are redemption rules clearly defined?

• Does the structure still hold under stress scenarios?

R2's goal is to bring these questions back to the center of the conversation.

In traditional financial systems, stable and explainable yield primarily comes from a few asset categories:

• Extremely low risk

• Transparent returns

• Strong liquidity

• Limited upside over the long term

Treasuries serve as a yield anchor, not a yield amplifier.

Including:

• Short-term corporate bonds

• Senior secured loans

• Trade finance instruments

Key characteristics:

• Higher yield than Treasuries

• Risk depends on:

  • Duration

  • Collateral structure

  • Borrower quality

These assets form the backbone of most medium-risk, medium-return portfolios.

• LATAM and Asia-focused credit

• SME financing

• Assets backed by real operating cash flows

These assets:

• Require stricter duration and redemption constraints

• Are not designed for frequent entry and exit

• Can provide stable returns when structured properly

Many assume the main challenge with RWAs is asset quality.

In practice, we have found the opposite to be true.

RWAs are not short of assets, they are short of usability.

The most common issues are:

• Mismatch between asset duration and user expectations

• Unclear or inconsistent redemption rules

• Fragmented risk disclosures

• Users not fully understanding what they actually hold

This is why many RWA products that look attractive on paper struggle to achieve real adoption.

R2 is not a protocol designed to "invent yield."

What R2 is building can be summarized in three parts:

R2 Vaults are not designed to chase maximum APY.

They are built around:

• Short- to mid-duration assets

• Clearly defined redemption rules

• Traceable and explainable cash flows

So users can clearly understand: What their capital is doing.

Beyond user-facing Vaults, R2 operates at a deeper layer:

• Working directly with asset managers and issuers

• Bringing real-world yield on-chain

• Providing standardized execution and settlement frameworks

This positions R2 not just as a front-end product, but as yield execution infrastructure.

R2 currently focuses on underlying assets from:

• The United States

• Latin America

• Asia

These regions share common characteristics:

• Clear legal and financial frameworks

• Mature short-duration credit markets

• Existing, real demand for yield

Across all products and partnerships, R2 adheres to a set of consistent principles:

• We do not promise yield that cannot be explained

• We do not obscure asset duration

• We do not sell liquidity illusions

• We do not treat short-term incentives as long-term returns

Yield is not a marketing slogan. It is the outcome of system design.

Real-world yield is not a new concept.
It has existed within traditional financial systems for decades.

R2 is not trying to invent yield. Instead, we aim to:

Bring existing, explainable yield to the users and endpoints that need it, in a more transparent, usable, and simplified way.

What ultimately matters is not how high the yield is, but:

• Where it comes from

• How risk is constrained

• Whether users understand what they hold in all market conditions

R2 will continue building around these principles, rather than chasing short-term numbers.