Brief review of RWAFi, a Plume Network aggregation service platform that raised $20 million in funding

Authored by: Haotian

Seeing the news of @plumenetwork’s $20 million financing in the market, my intuition tells me that this will be a landmark event driving the development of the RWA track. Simply put: Plume uses a fully integrated vertical technology framework to classify all of these into the category of RWAFi and provide comprehensive infra+ compliance services. Let me briefly share my thoughts:

1. The development and evolution of the RWA track has not been systematic. The core business development logic is the injection of a large number of on-chain assets + off-chain compliance and legal framework resource capabilities, as well as experimental landing applications, involving a relatively wide range of areas, such as real estate asset tokenization, art collection tokenization, security tokenization, supply chain finance tokenization, cross-border trade tokenization, etc.

It can be found that the landing of such scenes is fragmented, but with the demonstration of projects like Ondo and Huma in various vertical scenes, after the fragmentation of scenes becomes more abundant, platforms like Plume, which are aggregating service platforms, naturally emerge. This is the manifestation of the increasingly mature RWA track.

2）Based on this premise, Plume has built a modular infrastructure specifically designed to serve the RWA track, such as a tokenization construction engine aimed at achieving the creation, registration, and management of RWA asset tokens, and incorporating considerations such as compliance and security in the asset issuance process, ensuring that the platform’s RWA asset starting point can be deployed quickly, economically, and in compliance.

For example, Plume has built Nexus on-chain data services, aiming to integrate reliable off-chain data and integrate more real-time off-chain data into the blockchain system in the form of oracles, which is equivalent to customizing a dedicated oracle data pipeline for the RWA track;

In addition, in the face of fragmented compliance service demands, Plume directly integrates ‘compliance’ suppliers into the upstream supplier system of the platform based on its unified integration advantage, to ensure that tokenized assets on the Plume platform meet compliance and regulatory requirements from the start.

Of course, some unified wallet asset management tools, including integration and compatibility with various token standards such as ERC20, 721, 1155, and 3643, as well as integration with other chain DeFi infrastructures, will also be provided as a package service.

3. There are many layer2 technologies such as OP Stack, ZK Stack, Polygon CDK, Rollup as a Service, etc. on Ethereum, but these to B stack frameworks have more logic to precipitate developers and quickly homogenize the deployment of some infra.

In comparison, the challenges faced by Plume in building modular integrated services in the direction of RWAFi will be greater. The main reason is that there are existing on-chain DeFi infrastructure experiences such as on-chain token standards, wallet adaptation standards, DeFi ecosystem composability, etc., but there are challenges in off-chain compliance issues, Oracle data credibility issues, on-chain liquidity volatility and regulatory deviation issues, on-chain transparency of behavior, and privacy protection issues.

There are too many complexities in technology, operation, risk control, etc., waiting for Plume to solve.

However, as a block aggregation service platform for RWAFi, Plume’s opening performance is not bad, with more than 180 applications and protocols already accumulated, and the test network has attracted more than 3.75 million users, generating billions of transactions.

This is actually not difficult to understand. After the aggregation platform effect of RWAFi is generated, it will naturally become the comprehensive portal of the RWA ecosystem, which will drive the RWA race track to release its potential more quickly and efficiently.