Why DeFi plus asset tokenization will take cryptocurrencies to new heights by Cointelegraph


Why DeFi plus asset tokenization will take cryptocurrencies to new heights

In previous years, we have seen numerous attempts to bring real-world assets to the crypto market. However, none of them have proven to be massively adopted among retail cryptocurrency users and traditional financial players. So why hasn’t real-world asset tokenization become a massive trend? The real world assets used by the protocol must have a transparent source of prices available on demand by any user of the protocol. This requires not only selecting an asset capable of meeting this requirement, but also building a pricing oracle that will transfer collateral information. Such an oracle should be connected to a transparent and reliable pricing source, such as Bloomberg Terminal, rather than receiving proprietary data from a centralized party. Real-world assets used by the protocol should be as less volatile as possible, generate fixed income for provide real cash flows to liquidity pools, and have a certain level of liquidity and market in the real world to be able to process the liquidation event should it occur. The protocol should allow users to borrow money in fiat. For such purposes, there is a need for another intermediary to be connected to the protocol, to cover the exchange needs of users who want to borrow money in fiat currency and fulfill the role of a payment agent for them. by protocol it must have a digital presence, for example, kept in a secure accounting system. To achieve this, an intermediary is necessary to operate said systems connected to the protocol. To uphold the decentralized nature of the protocol and maintain trust at the highest level achievable, intermediaries connected to the protocol must be regulated, secured. , selected and supervised by the protocol community under the established requirements. In addition, the community will decide on any other matters crucial to the development and economic sustainability of the protocol, including the selection of assets that can be admitted as collateral.

Artem Tolkachev is the founder and CEO of Tokenomica. For more than six years, Artem has been a key thought leader on blockchain and tokenization in the CIS region. Since 2011 he has been a lawyer and entrepreneur in intellectual property and information technology. In 2016, Artem founded and led the Deloitte CIS Blockchain Lab. As part of that initiative, he led a variety of innovative projects involving the implementation of enterprise blockchain solutions, the tokenization of real-world assets, the legal and tax structuring of offerings. of security tokens, cryptocurrency development and blockchain legislation.

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