Multicoin: The RWA upchain will help the DeFi expand to D...

Multicoin Capital said in a statement that RWA 's upstream will drive the expansion of DeFi to DeFi .0 infrastructure. In its view, after traditional assets such as sovereign bonds, stocks, corporate credit, commodities and foreign exchange enter on-chain , the existing DeFi , which is mainly built around AMM, perpetuity, open-ended floating rate lending and overdraft mortgages, will gradually join more conventional financial infrastructures.

Why does RWA uplink change the structure of DeFi

DeFi Early products are more serviced by on-chain Native token 。AMM is suitable for continuous trading and liquidity pool , perpetual futures suited to high-leverage price games, while open term floating rate lending and excess mortgages can handle higher volatility.

When assets are converted into government bonds, stocks, corporate credit, commodities and foreign exchange, the trading pair is no longer simply a convertible token , but may also have expiration dates, credit risk, interest rate benchmarks, dividend rights, collateral attributes and legal settlement paths. These differences make the original instrument insufficient to cover all needs.

DeFi 2.0 What basic components are needed

Multicoin Capital will target changes to a specific set of infrastructures: central cap order book , inquiry system, fixed rate, term loans, earnings split, interest rate derivatives, repurchases, dark pools, portfolio securities, options and periodic contracts.

These components are tailored to different scenarios. Central capping order book and enquiry systems are used for more precise price discovery with institutional quotes; fixed interest rates and term loans match capital costs to maturity; earnings splitting separates cash flow rights from assets; interest rate derivatives help hedge against changes in interest rates; repurchases can be used for short-term mortgage financing; dark pools provide private execution of large transactions; portfolio collaterals and options, while periodic contracts refer to portfolio risk management and structured trading.

What are the possible levels of value?

Under this framework, the value of RWA is not limited to front-end products but can also be deployed across multiple layers of infrastructure: Universal blockchain , Core Financial Protocols, Aggregation and on-chain Major Brokers, Applications and Order Layer.

For developers, the competition may shift from a simple pool of borrowing to liquidation, pricing, collateral management and portfolio risk control; for institutional participants, it is more critical that they have access to stable, auditable and hedge-able execution environments; for ordinary users, changes may be reflected in accessible asset classes such as sovereign bonds, stocks, corporate credit but also require an understanding of maturity, credit and clearing rules.

A follow-up view is whether these components will form stable operating conditions in on-chain and if the traditional asset chain will drive more mature clearing, pricing and risk management tools. Relevant progress still depends on factors such as issuance of assets, legal rights, blockchain oracle , collateral flows and user acceptance.