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The market in Web3 is growing rapidly, but two fundamental problems prevent it from becoming a mature financial layer.

Fragmented Liquidity

Liquidity is scattered across dozens of isolated pools — none reaching meaningful scale

Opaque Governance

Key decisions happen offchain with limited visibility for token holders

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Fragmented Liquidity

Most issue a separate token for each asset or asset pool — one for a property, another for a credit portfolio, another for infrastructure. Every token creates its own isolated market.

Liquidity is scattered

Dozens of small, independent pools — none reaching meaningful scale. Capital cannot concentrate into deep, reliable markets.

Price discovery is unreliable

Thin markets produce inconsistent and easily manipulated pricing. Without volume, fair value remains unknown.

Capital is trapped

It cannot flow freely between assets, limiting efficiency and composability across the ecosystem.

Yield stays siloed

Each asset generates an isolated income stream that does not reinforce the broader system or attract new capital.
Instead of one deep, unified liquidity layer, the RWA market operates as a fragmented patchwork of micro-pools. This structural weakness makes the entire sector fragile, capital-inefficient, and difficult to scale.
As long as liquidity remains fragmented, RWA cannot become a mainstream DeFi primitive.

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Opaque Governance

Beyond liquidity, the RWA sector suffers from a governance problem. Most protocols manage real-world assets through centralized or semi-centralized structures where key decisions happen offchain, with limited visibility for token holders.

No transparent decision-making

Asset selection, risk parameters, and fund allocation are controlled by small teams without onchain accountability. Token holders have no visibility into how their capital is managed.
Protocol operators may prioritize their own interests over token holders, with no mechanism to prevent or detect this. The absence of checks and balances creates systemic risk.
Each protocol invents its own rules, making it impossible for users to evaluate or compare governance quality across platforms.
Participants must trust operators rather than verify onchain — contradicting the core promise of DeFi and recreating the opacity of traditional finance.
Without transparent, verifiable governance, real-world assets onchain are simply traditional finance with extra steps — inheriting all the opacity of the old system while gaining none of the benefits of decentralization.
For RWA to fulfill its potential, both liquidity and governance must be solved at the protocol level — not left to individual projects.