Real-world assets are definitely breaking into the mainstream now. The thing is, RWAs work best when they're being used as collateral—that's where the real utility kicks in.

Here's the key: wherever you've got collateral on a protocol, there's debt sitting underneath it. The debt amount and terms shift depending on which protocol you're working with. Different DeFi platforms structure their collateral requirements differently, which means the risk models and liquidation thresholds vary too.

So the real question becomes: how each protocol designs its debt mechanics around RWA collateral. That's where the protocol's risk management framework really shows itself.