RWA Project Index (RPI)
Background
Real World Assets (RWA) refer to physical assets that are tokenized and brought onto blockchain networks, enabling them to be traded, invested in, and managed digitally. These assets can include real estate, commodities, bonds, and other tangible items. The trend of integrating RWAs into Web3 is gaining traction because it promises to enhance liquidity, transparency, and accessibility in traditionally illiquid and opaque markets. By leveraging blockchain technology, RWAs can be fractionalized, allowing smaller investors to participate in markets that were previously inaccessible. Additionally, the immutable and decentralized nature of blockchain ensures secure and efficient transactions, further driving the interest in RWAs within the Web3 ecosystem. Another advantage of RWA products is their ability to provide predictable fixed earning rates, which offer a stable investment option in the otherwise volatile crypto market. This stability is particularly appealing to risk-averse investors seeking steady returns.
The market for RWAs is experiencing significant growth, reflecting the increasing interest and investment in this space. According to Korbit research, the RWA product TVL has grown from $700 million to $5.7 billion by 2023, and The Boston Consulting Group (BCG) has projected that the RWA market will grow to $16 trillion by 2030. Furthermore, the total value of assets managed on decentralized finance (DeFi) platforms that incorporate RWAs has exceeded $1.5 billion, according to DeFi Pulse. This trend is also evident in the number of projects and protocols focused on RWAs, such as Ondo Finance, which has facilitated over $500 million in products backed by real-world assets. These figures highlight the potential and the rapid growth of RWAs in the Web3 landscape.
Thus, to follow the demand of the market, NEOPIN has selected initial component tokens of trending RWA projects as below:
Initial Set Up
| Name | Symbol | Price ($) | Market Cap ($) | Allocation | DEX TVL (M, $) | Token Contract |
|---|---|---|---|---|---|---|
Maker | MKR | $2,379.74 | 2,208,177,063.32 | 29.10% | 48.8 | |
Ondo | ONDO | $1.12 | 1,551,138,073.40 | 24.68% | 11.3 | |
Pendle | PENDLE | $5.41 | 835,141,193.83 | 18.22% | 2.1 | |
MANTRA | OM | $0.72 | 567,738,696.00 | 14.95% | 4 | |
Propy | PRO | $1.54 | 153,739,970.21 | 7.64% | 0.595 | |
Goldfinch | GFI | $2.62 | 76,465,920.58 | 5.41% | 1.8 |
The parameters are updated with the data from CoinmarketCap and Uniswap on 17/06/2024. The component tokens may be updated as the market capitalization changes over time.
Methodology
Our methodology involves selecting and weighting tokens based on their market capitalization. To prevent over-concentration, we cap the allocation of any single token at 30%. Excess weight is redistributed proportionally among the other tokens in the index. The selection criteria include factors like network compatibility (Ethereum ERC20), market cap, liquidity, project history, and security reviews. These standards ensure that only high-quality, stable tokens are included in the index.
If you would like to see the full details, please see [View Details] > [Methodology] of the product details
Notes:
Allocation calculation logic with 30% Max. cap and 2% low threshold with assuming no slippage / swap fees included during the rebalancing.
The 30% max cap is applied in the allocation calculations by averaging raw value and the max cap.
The allocation lower than low threshold will be set to 0%.
Any excess weight is redistributed proportionally among the other tokens in the index.
GFI's allocation has been set to 0% prior to official launch due to the instability of the project and DEX TVL.
Maintenance
The RWA Project Index is maintained quarterly, with updates occurring in two phases:
Determination Phase: During the third week of each rebalancing month, we review and determine the necessary changes for the next quarter. This involves analyzing price and market cap data to ensure the index remains balanced and reflective of the current market.
Reconstitution Phase: Adjustments, additions, and deletions of index components are implemented on the first business day of the quarter. This ensures that the index adapts to market changes and continues to provide optimal diversification and risk management.
Find the rebalancing history as below:
[RPI] Rebalancing HistoryBy leveraging these methodologies, the RWA Project Index provides a robust and dynamic investment product that adapts to market conditions while maintaining a stable and diversified portfolio.
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