How much debt gets drawn against an RWA reflects how much the market trusts it as collateral.
@FalconXGlobal AA_FalconXUSDC leads with 25% of its total value still borrowed against - the highest sustained leverage in @ArrakisFinance's study.
Levered carry on private credit is the largest borrow use case on Morpho outside prime markets.
For instance, @3f_xyz's 6.5x leverage vault on @FalconXGlobal's @paretocredit vault has been yielding ~20% APY.
Leverage is drawn from the wFalconX market on Morpho, which has become a top 20 collateral on Ethereum in less than 2 months
.@ArrakisFinance traced what buyers actually do with tokenized RWAs after buying them. Most of it just sits in spot.
@FalconXGlobal AA_FalconXUSDC stands out: 46% is put to work as collateral on @Morpho - the highest collateral share of any product in the study!
@ArrakisFinance How much tokenized credit actually gets used as collateral says a lot. Nice to see AA_FalconXUSDC come out on top there - that's usually a sign institutions trust an asset enough to build on top of it.
Great insights all around!
@Benzinga Agree, legacy private credit's opacity is where the risk tends to hide.
Onchain infrastructure can bring more transparency and capital efficiency to these markets - a structural improvement worth taking seriously as private credit scales.
@ZeusRWA Actually, we're preparing to launch Pareto Studio - a self-service, no-code platform for structuring and deploying Credit Vaults on Pareto
https://t.co/2YyL6gPjVV
Four steps.
15 minutes.
Your own institutional credit facility - ready to be launched onchain.
Pareto Studio is in closed beta - DM us to request access.
@ImperiumPaper Interesting take. Curators at Pareto don't decide where lender liquidity goes - they're incentivized to keep the vaults healthy. And if things go wrong, it's the curator who represents LPs in recovery
https://t.co/p8YT8KedE2
@Delphi_Digital Most neobanks today just replicate legacy banking with a better UX. The ones that survive will be those that lean into DeFi's composability and offer what legacy banking structurally can't
https://t.co/F5faWqm2qL