The yield derivative protocol, Pendle has introduced Real World Assets (RWA) based financial product that will generate gains from traditional sectors.
Pendle will use MakerDAO’s SavingsDAI (sDAI) and Flux Finance’s fUSDC in this first RWA-based product. Both these tokens bear yields from the traditional finance sector.
Pendle is a DeFi yield generative protocol that offers yields in the form of tradable tokens. It was launched in November, 2022 on Ethereum and later expanded to multiple chains including Arbitrum, BNB Chain, and Optimism.
Real World Asset (RWA) financing is a new primitive in DeFi which refers to the mechanism which enables financing of virtual assets with traditional assets like real-estate, commodities and other traditional financial instruments.
“RWA is already one of the fastest growing sectors, with a monstrous addressable market waiting to be unleashed in DeFi, and we’re ready for it.” says Pendle.
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