Phoenix

Currently, we can only handle a limited number of RWA. For example, if you want to include US stocks in your portfolio, you can use the S&P 500, but you cannot hold that position directly from USDC. There are obstacles to allowing the S&P 500 to be handled from USDC in the following ways.

1. Difficult to get real-time S&P 500 prices
2. No CDPs will issue tokens pegged to the S&P 500
3. For the price to stabilize, the tokens issued on the CDP must have enough liquidity on AMM. Similarly, to be able to treat each gold, REIT, government bond, etc. as an RWA in DeFi, someone has to prepare for them to meet the above three requirements every time. This would take a long time for RWA to come to DeFi.

Links

• https://github.com/trudransh/Phoenix_Eth_India

1. Establishing reliable and tamper-proof price feeds for real-world assets (RWAs) to ensure fair collateral valuation.
2. Navigating the complex regulatory landscape to integrate RWAs into a permissionless DeFi environment.
3. Generating sufficient liquidity for newly created CDP markets, especially for niche or less liquid RWAs.
4. Ensuring the robustness of smart contracts against vulnerabilities and exploits, particularly for contracts handling RWAs.
5. Creating CDP for the different RWA's and then integrating it with the Index Liquidity Provider.
6. Adding the liquidity pool of the newly created RWA/USDC pair in the AMM.