I’m Valerio a finance student in Italy. I’d like to make a discussion regarding the possibility to expand RWA into the idea of “circular economy”.
What:
The goal would be tokenize second hand (luxury or not) accessories or “things” (watch ecc) in order to have collateral and stable pools. The idea is to create a market (vinted, wallapop ecc) where we can have data about the prices and also where the pool could sell the collateral.
Why
Growth of Circular economy , a lot of stable assets not used like luxury watches, impossibility to gain yield on those assets, marketing friendly, Possibility of earning from diversified sources (marketplace), Lowest prices for products used as collateral.
then, people can use “things” to gain better collateral for loans or simply earn interest from luxury assets ecc
Howdy, this kind of like a defi pawn shop. There would have to be a physical location to hold the collateral during the time that they are pooled, no? A pool could be launched by a platform that can hold and manage tokenized assets in escrow and that has a “deposit” platform for collateral on one side and a secondary vinted style market on the other. It’s an interesting idea and could work for more liquid assets that that can be accurately priced. watches, jewelry, and potentially artwork. A lot of moving parts (watch pun) and underwriting required but a professional provider could probably handle it. Yield might be too low and these are extra real assets which adds overhead and complication.
Certainly, it’s complicated, but it’s a scalable idea to connect real assets to tokenization.
To start, these assets could already be stored in bank vaults; I suppose many assets like artworks, watches, Pokémon cards, shoes, and so on, are already in secure storage. Wouldn’t that be sufficient?
Certainly. The documentation for many of the off-chain assets used on centrifuge are also stored by custodians in physical locations albeit in paper form. Worth exploring
How investors can trust your storage manager and valuation of assets?
Artwork could be evaluated and prices, but what to do with other proposed assets?
What are the min costs for tokenized one asset and what to do if the price of the assets is less than the cost of tokenization?
Storage: physical store or bank
Evaluate: oracle if data available (we’d need a market)
The valuation, with given market, could be trusted with high volume
A marketplace is created, for simplicity let’s say it’s similar to Vinted.
Now, if I want to use a physical asset as collateral, like those previously mentioned, I can list the item for “pre-sale” at an obviously discounted price to accept payment. This payment occurs as a pre-payment; the user puts their crypto, let’s say a stablecoin, into a pool, which simultaneously enhances liquidity and earns a percentage. In the event that the borrower repays the loan, the funds placed in the pool as pre-payment are returned to the lender; otherwise, the lender will purchase the item. The item should likely be stored in a bank, which should have no problem shipping if necessary (I am, of course, simplifying).
This way, you would have a decentralized marketplace (similar to Vinted as mentioned earlier), with login only through a wallet, where the marketplace earns by selling insurance on products, commissions, or other means. Users can find rare and valuable items at lower prices if a loan is not repaid. Users can tokenize their high-quality products and use them as collateral, while lenders earn a percentage from the pool and, in some cases, can purchase luxury goods at discounted prices.
