Opportunities by NEND

NEND protocol allows users to utilize their assets and provides a solution for creating greater capital efficiency and earning attractive yields.

RWA owners can borrow against the value of their RWA whilst retaining ownership of the asset.

If you have bought a tokenized RWA that you want to hold on to because it has rights associated to it you wish to retain but at the same time it’s of no practical use, NEND protocol will allow you to utilize its value and take opportunities for more returns in several ways, such as reinvest timely undervalued assets or highly profitable tokenized RWA.

Many owners view tokenized RWA ownership as a long-term investment but would like to make short-term better use of the asset. No tokenized RWA is the same so the reason for different stakeholders participating in this ecosystem will be many and varied. All operations will be governed by smart contracts defined by a democratic governance process, like many you can see working today in the Defi community. While lenders in the protocol can earn a yield through providing liquidity and through the process of assessing risk and value, ‘curators’ in the network can earn NEND tokens for performing ‘curation’ (the process of defining a tokenized RWA $ valuation).

NEND Protocol especially enables participants to refinance or monetize their various illiquid assets.

In several sectors of the defi protocol, various assets remain illiquid in the form of deeds, notes, or bonds. These assets typically take a long time to sell or can be structurally complex because the underlying sources of cash flow can be hard to discern. There may be time or costs associated with the conversion to cash that could impact the final amount.

Borrowers getting a loan by collateralizing their RWAs can issue ‘Trust deeds’ while lenders offering a loan receive ‘Promissory notes’. Also, stakers who stake assets and get rewards in escrow can also issue EABs(Escrowed Asset-Backed Bonds). The value of such illiquid assets is possibly lower than that of an intrinsic asset that is readily marketable. Trading these assets on the market can produce sufficient cash flow in the ecosystem. Through this secondary market, you can have a huge opportunity of managing risks and amplifying yields by trading illiquid assets.