Rising 100% in a week, Avalanche’s RWA strategy and European market capture

2023-11-15 14:02

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Original Title: "Avalanche's Land Grab for Tokenized Assets Unlock Trillions in Institutional Money"

Original Author: ARNDXT

Translated by: Luccy, BlockBeats

Editor's Note:

In the last bull market, Solana, Avalanche, and Terra, as the three most widely adopted L1 public chains, together shaped the narrative of the "new public chain". "Solunavax" also became a meme-like presence on Twitter. Although the three public chains are not comparable, "Solunavax" seems to still point to the price trend.

In addition, AVAX has risen by 100% in the past month, and the rise in coin price is closely related to the steady ecological development of Avalanche. Cryptocurrency researcher ARNDXT pointed out that RWAs will be the next major narrative, and Avalanche's entry into RWAs and the European center is consistent with its strategy of attracting institutional capital and consolidating itself as the preferred blockchain for enterprises.

ARNDXT is optimistic about Avalanche's launch of the $50 million fund "Avalanche Vista", believing that this will promote wider adoption of RWAs and bring new opportunities to the DeFi industry. He believes that ReHold has promoted the development of AVAX's RWA ecosystem in expanding the European market. BlockBeats has translated the original article as follows.

AVAX is a leading tokenized asset.

With AVAX rising 100% in a month, it's hard to ignore the progress made by the Avalanche team as they occupy a market share in Europe through the latest developments in the RWA field.

Avalanche is one of the ecosystems that I firmly believe in as a practitioner in the encryption industry, because it constantly builds powerful narratives, one of which is in the RWA field.

AVAX quickly rose from $9 to $18, a 100% increase in less than 30 days.

It has taken decisive steps to establish its dominant position in RWAs and expand its presence in the large European crypto market. These measures are in line with Avalanche's strategy, attracting institutional capital and establishing infrastructure for mainstream blockchain adoption.

RWAs are the next big event

RWAs involve tokenizing real-world assets such as private equity, real estate, and commodities on the blockchain to enable more efficient trading, fractional ownership, and embedded programmability.

The RWA market is expected to quickly surpass the current DeFi industry. Recognizing this huge potential, Avalanche has launched a $50 million fund called Avalanche Vista to accelerate the adoption of RWA by purchasing tokenized assets minted on its chain.

Avalanche's technical features, such as speed, low cost, and customizability, make it an ideal choice for assets that require high throughput, such as KKR's issuance of private equity tokens and RealT's fractionalization of property ownership.

Gateway for Institutional Capital

Avalanche's RWA initiative is aligned with its strategy of attracting institutional capital.

The launch of Avalanche Evergreen's subnet Spruce will focus on introducing institutional partners into DeFi, initially involving some core financial services such as foreign exchange and swaps, with plans to expand to more asset types and financial services in future stages.

Major asset management firm Franklin Templeton plans to introduce its money market fund to Avalanche. Prominent investors Andreessen Horowitz and Polychain Capital also support Avalanche's institutional appeal.

Avalanche's RWA ecosystem continues to strengthen, with its DeFi protocols ReHold and Trader Joe playing a crucial role in the ecosystem.

Expand European Market

ReHold is driving the RWA ecosystem of Avalanche towards its goals, providing more utility for $EURC through two features: $EURC Duals and gasless transactions on ReHold.

$EURC is a Euro stablecoin issued by Circle. They have released version 2.2 upgrade for their USDC and EURC stablecoins.

The new features include reduced gas fees, better support for account abstraction, and improved transaction security on EVM blockchains.

$EURC Duals Description:

TLDR: Earn leveraged returns through these LPs.

The Dual product offers very high returns through high-risk leverage exposure.

It allows users to stake one of a pair of tokens within a fixed time period.

Pledge yield is usually much higher than regular pledge yield, often exceeding 100% annualized percentage rate. This is due to leverage and volatility exposure.

If the price of the unpromised token undergoes drastic changes during the locked token period, there is a risk of unavoidable loss. This may result in the returned tokens being less than the initially deposited amount.Due to the potential for leverage and short-term price volatility, Dual Investment is considered to be very high risk. High returns come with equally high risks.

ReHold 上的无 Gas 交易

Gasless Transactions on ReHold

This is a feature that caught my attention: Gasless.

This, combined with ReHold's Dual Investment product, makes it more affordable for users to access high-yield DeFi investments.

Choosing multiple blockchain networks further optimized costs. It covers 6 different blockchain networks: Ethereum, Binance Smart Chain, Polygon, Avalanche, Fantom, and Arbitrum, providing users with the flexibility to choose the network with the lowest gas fees or their preferred network.