Unlocking DeFi Yield with Real World Assets: Strategies and Opportunities

The Problem with Pure Crypto Yield

DeFi summer showed both the promise and peril of on-chain yield. While early protocols offered astronomical APYs, many of these yields were unsustainable—fueled by token emissions rather than real economic activity. When the music stopped, yields collapsed and many protocols failed.

RWA: Sustainable Yield from Real Economic Activity

Real World Assets offer something different: yield backed by actual economic activity. When you invest in tokenized treasuries, you're earning from government interest payments. When you lend to tokenized private credit, you're earning from business loan repayments. These yields may be lower than peak DeFi, but they're sustainable and predictable.

Current RWA Yield Opportunities

Tokenized Treasuries (4-5% APY): On-chain access to US Treasury yields through protocols like Ondo and Backed. Low risk, dollar-denominated returns. Private Credit (8-15% APY): Lending to real businesses through protocols like Centrifuge and Goldfinch. Higher yields with additional risk. Real Estate (6-12% APY): Fractional ownership of income-producing properties. Combines yield with potential appreciation. Trade Finance (10-18% APY): Financing international trade through tokenized invoices and receivables.

Building an RWA Yield Portfolio

Smart investors are building diversified RWA portfolios that balance risk and return. A typical allocation might include: • 40% in tokenized treasuries for stability and liquidity • 30% in private credit for enhanced yield • 20% in real estate for diversification and appreciation potential • 10% in higher-risk trade finance for yield enhancement The key is understanding that RWA yields come with different risk profiles than pure crypto yields. Credit risk, duration risk, and liquidity risk all need to be considered.

The ubqty Yield Aggregator

ubqty is developing tools to help investors access and optimize RWA yields. Our yield aggregator will provide a single interface to compare opportunities across protocols, assess risk factors, and deploy capital efficiently. We believe that RWA yield is the foundation of sustainable DeFi—and we're building the infrastructure to make it accessible to everyone.