PontoonDAO /by AMPnet: Real-World Asset Index Funds on NEAR Blockchain

Real-World Assets — RWAs

Blockchain technology has historically been used to trade and use so-called “Digital Assets”. This includes Utility Tokens, NFTs, LP Tokens, Staking Tokens and all other DeFi goodies we’ve come to expect in this day and age.

Types of Real-World Assets
  • Renewable Energy
  • Stocks/Company Equity

Benefits of RWAs

Exposure to productive, dividend-generating equity

Most value in digital assets comes from speculative supply/demand mechanics. A lot of RWAs, on the other hand — earn income and pay dividends to their holders. This makes them a great asset class for diversification of DeFi portfolios.

Hedge against crypto bears

Most crypto markets go up and down in tandem with BTC. This makes crypto bear and bull markets a fact of life for all DeFi investors — no matter what crypto they’re invested in. RWAs, however, are generally decoupled from BTC and follow their own bull/bear cycles. This makes them a great hedge against crypto bear markets and a source of security through diversification in crypto bull markets.

Problems with RWAs

Lack of liquidity

Most platforms which deal with secondary markets for real-world assets have very low trading volumes and limited liquidity. For some assets such as real-estate or renewables — the fact that they have predictable returns means that the incentive is for investors to buy and hold these assets — not actively trade them.

Information overload

Investors who want to invest into RWAs need to read and understand complex financial information, often hidden in layers of obscure accounting jargon. For people not used to investing in such asset classes — this can be a daunting challenge and might turn them away from investing into these asset classes all together.

The PontoonDAO Solution

Creating (Swapping) Liquidity

Delegated/Passive Investing

  1. Mint Index tokens by delegating stablecoins to the Index Manager or Index Council

Initial Projects

PontoonDAO is launching with the following indexes:

Providing Liquidity

PontoonDAO and AMPnet are working with partners to provide incentives for maintaining liquidity of PontoonDAO Index tokens on the NEAR blockchain. The announcements for this will come in the following weeks.

Launch

PontoonDAO, associated liquidity mining, TraderX and other initiatives will launch during Q1/2022.

AMPnet • Build a blockchain powered investment platform — with integrated trading — in minutes. Wrap your investments into synthetic tokens and use on DeFi apps