In volatile markets, RWAs like gold are a lifeline

Current market volatility has driven investors towards safe haven assets like gold. However, gold's lack of income generation is a drawback compared to alternatives. DeFi offers a solution by enabling yield generation from tokenized gold. Currently, tokenized gold largely mirrors ETFs, offering no yield. The low market capitalization of gold-backed tokens reflects investor preference for yield-generating assets. Integrating tokenized gold into DeFi could unlock its potential for income generation. This involves using gold reserves to create yield-bearing stablecoins. Blockchain technology offers benefits like 24/7 trading and instant settlement for tokenized gold. The convergence of growing digital finance acceptance and demand for gold creates an opportunity for DeFi. DeFi can bridge traditional and digital finance by providing yield opportunities without compromising gold's stability.