What are Real World Assets (RWA)?

Real World Assets (RWA) are the tokenization of real world tangible or intangible assets that are brought onto chain. Essentially, they are traditional financial assets that are made available to users on the blockchain. RWAs therefore can represent tangible assets like real estate or intangible assets like government bonds.

These RWAs are traditionally backed by traditional assets and can serve as representations of traditional assets issued directly on or off chain.

On Hydro Protocol, there are a two significant ways we can optimize on RWAs:

• Use RWAs as index components on Hydro’s Real Yield Assets (RYA)

• Use Hydro’s LST to collateralize RWAs