Our Belief is Simple – Life is Better Onchain
We recently shared our manifesto which details out why Real World Assets (RWAs) matter. Permissionless, global, 24x7 access coupled with bottom-up innovation leads to incredible things.
But the real world doesn’t work this way, not yet.
By turning everything into software and more importantly, bringing everything onchain – we can unify the global economy and unlock new use cases that we’ve never seen before.
How do we plan to bring the real world onchain?
The Plume ecosystem, centered around a purpose-built L1 blockchain, will achieve this with Real World Asset Finance (RWAfi) innovation intended for crypto natives; a full-stack, purpose-built ecosystem; onboarding the next billion assets, users, and dollars; and creating a unified global ecosystem.
RWAfi Innovation For Crypto Natives
Yield has always been one of the core use cases of crypto. Whether it’s passive yield farming or complex DeFi strategies, there is no question that yields drive crypto.
But onchain users have matured and we’ve learned that not all yields are created equal. Most crypto yields are simply volatile point systems where you are promised one thing and delivered another.
They’re often unstable, moment in time, and fleeting – founders screenshot APYs when they are at their absolute peak and mask the inherent risk in achieving those yields. Users are overpromised and underdelivered.
When the markets are up, none of this matters. Users chase high yields and rotate from project to project to capture the highest returns.
When markets go down (as they always do) what do users do then? They rotate back into RWAs – the stablecoin – and earn 1% to 2% on Aave and Compound while they wait for the next cycle.
We can do better than that.
We can offer a broader array of real assets that are not only yield bearing, but also composable. When assets offered on Plume backed by RWAs say 15% APY, it’s actually 15% in real yield (and of course then paired with additional token APYs on top). Then with other DeFi protocols on Plume, you can loop these assets and earn far more stable and real yields.
Similarly, speculation markets today are limited to basic derivatives and synthetics that fail to capture the deep liquidity of traditional finance instruments.
Protocols built on Plume will be able to offer more sophisticated tools because the network is designed to enable tokenization of synthetics that are fully backed by RWAs, maintaining the composability and programmability that are core tenets of DeFi.
This allows for the creation of sophisticated financial instruments that combine the best of traditional finance rails with Plume’s innovative infrastructure.
A Full Stack, Purpose-Built RWAfi Ecosystem
Simply deploying real world assets onchain does not instantly mean there is both liquidity and a market for it. A thriving onchain community requires a number of key players – asset issuers, users, liquidity providers, to name a few.
These stakeholders do not exist in the crypto ecosystem today. They not only need the guardrails that come from traditional financial systems, but they also require a holistic ecosystem to derive value themselves.
From one of our partners, a $40B asset manager:
You need a full stack architecture and ecosystem to do this.
One that combines technology, community, ecosystem, and liquidity into a single flow to ensure the success of these assets and make sure that assets that are deployed onchain actually improve, not get worse.
Unfortunately, most RWAs get worse when you put them onchain. There’s no usage, no adoption, no composability, no liquidity.
Instead, the creation of a virtuous cycle where these assets can gain value by being onchain to a healthy ecosystem for everyone to participate.
Onboarding The Next Billion Assets, Users, and Dollars
The inflation rate in Argentina is currently over 200% a year. The savings rate is only 40%. Because of this, Argentinians all share one thing in common – they are losing money at an incredibly rapid rate by simply holding the peso.
This is a common story in emerging markets. Users desperately need a safer way to store value, earn, and transact their assets. That’s why products like Lemon Cash, Mercado Bitcoin, and Littio have seen incredible growth - they make it easy for users to hold the stablecoin but still interact with the real world.
Plume is the next iteration.
The Plume ecosystem will simplify the way that emerging markets and financial institutions bring value onchain.
Applications built on Plume are created with these users in mind, where anyone can not only hold value, but also earn value against USD denominated assets. Loop those tokens for additional rewards. All while still being able to utilize these assets in the real world.
Asset managers that are able to participate in the crypto market can further distribute their existing products and build out net new products fit for a crypto-native audience.
Through Plume, these institutions can increase AUM by accessing a whole swatch of new users – not only existing onchain users but also all of the new users in emerging markets that are rapidly onboarding into crypto.
Paired with the ability to leverage DeFi strategies like looping where AUM is dramatically increased with a much smaller base of capital, the ability to bring RWAs easily onchain to a new set of institutional ideas for revenue generation.
By leveraging RWAfi, Plume facilitates the creation of complex, yield-bearing instruments that meet any user's needs.
Navigating the Path to RWAfi Adoption
The convergence of RWAs and decentralized finance presents a transformative opportunity to reshape finance into an interconnected, accessible, and demand-driven global ecosystem. Plume is uniquely positioned to lead this transformation, backed by:
- Demonstrated User Demand: With 18 million wallets, 3.75 million actives and 265 million transactions, Plume has validated the market's readiness for RWAfi.
- Robust Ecosystem: Over 180 apps and protocols highlight Plume's thriving network.
- Significant Asset Commitments: $4.5 billion in committed assets ready to be tokenized and distributed.
By focusing on tangible demand for yield-bearing stable assets, building a vertically integrated composable ecosystem, and leveraging global and institutional distribution channels, Plume aims to drive innovation and meet the real needs of diverse investors.
And by aligning with genuine market demand and offering products that provide transparency, stability, and income generation, Plume will establish tokenized assets as the foundational modular and composable components of the new financial paradigm.
The demand for better RWA infrastructure and architecture is evident.
Through comprehensive infrastructure and regulatory alignment, Plume makes real-world assets even more valuable by bringing them onchain.
This is the second in a four-part series to explain what, why, how, and when Plume Network will be ready to bring the world onchain:
- Manifesto: Bringing the World Onchain With RWAfi
- Thesis: The Case for a Tokenized Future
- L1 Technology: How We’re Building Blockchain Infra Purpose-Built for RWAs
- Mainnet: An RWAfi Ecosystem Ready for Business