MIKE MASSARI How Tokenized RWAs Can Change DeFi RedStone

Let's see. Yes, nice to see you everybody. I am Mike Masari. We changed the speaker. So, this was not my talk.

Um, I created this presentation based on our new RWA focus in Reson. I'm strategic advisor Reson. I've been with Reson for a few months now. Before I was head of platform and integration at Changing Labs. So Marson cannot be here but you get me which is the second best option.

All right I like to start my talks with a question as well. Um and we're going to talk about something that is a bit more technical that is a bit more institutional than the previous project which is RWI. So let's start with setting the stage. How many of you have used DeFi before to trade stable coins or to trade tokens? So, eat or BTC.

Show hands. All right. Good. Good amount of people. Fantastic.

So, keep your hand up. How many of you have used it for trading real assets? So, commodities and stuff like that. One. And The one person what's her name?

Fabitio. Fabitio. What is RWA looping? Do you know? Yeah, exactly.

So RWA looping is the way that effectively a lot of DI protocols are integrating RWA into DI. We lived in a world for a very long time where most of the DeFi run and still runs on cryptonative assets. But that is changing and it's changing rapidly. So we want to figure out in the next few minutes why that's changing, why that is important, and why we should all care. So let me take you through a little bit of a journey and let's start with the past.

So in the past stable coiny tastes yield farming coateralized lending all of these things that we're very familiar with they were the essence of defi and we all lived in this like crypto sandbox in which all the crypto assets were crypto assets and all of the real world assets were different assets that didn't exist in blockchain and we built a bunch of things we did a lot and I've been in crypto since 2017 I saw this industry grow like many of you and I was part of this industry growth like many of you. We focused the last decade around building what is DeFi today. We have protocols like unis swap compound morpho a we have protocols like sushi swap. protocols like Resdon that really created what is the financial stack for native crypto assets today. And obviously we have lending pools request taking and that really gave like a boost to DeFi in a creation of a like this composable financial universe that we all live in now.

And this was awesome. Most of the reason why we're all here today is this. But there's also a bunch of things that we did not build. We didn't build infrastructure for the real world assets. We didn't build composibility with traditional finance and we didn't build onchain access to global credit to global yield.

And so because of that institutions were always a bit shy of crypto. Just now in the last few years you're seeing you know regulations coming into the crypto space. Yesterday the house of uh the house in the US just passed a bill for three crypto regulatory proposals for stable coins specifically mostly for stable coins. But this is a new thing and you're seeing this like crypto boom in the market. You saw it with the Trump election when the market just skyrocketed.

You're seeing it now because of the same thing. The US government is really really interested in what's happening in crypto and institutions are getting interested in what's happening in crypto. So in a word RWA so real world assets they're breaking in. they they're actually trying to become the central focus of crypto. There's a big push from the Ethereum foundation of Ethereum being the chain for institution, right?

And as a matter of fact, RWAS are the second fastest growing vertical in crypto today. First one being stable coins. So all these things that we talk about and we're very passionate about the AI, the payment, the gaming, all of these kind of things, they're after RWA. And this is something that not a lot of people talk about. So we wanted to discuss it today.

In 2022, RWA represented pretty much five billion dollars within the crypto market, right? This is commodities and stuff like that. Take a guess. How much is now button? 26.

Other guess is higher and lower than 26 billion. Higher. It's a bit lower. You're very close. It's 24 billion.

But this is a fivefold almost increase in three years. This is 5x. And this shows really what the interest of the industry is. Again, institutions are here. People like Black Rockck, people like City Bank, people like Capo, people like DTCC.

These are people that move hundreds of billions with a B of dollars a year and use cases are here. So, you know, to to get a successful recipe when it comes to making something really happen effectively, this is what you need. You need people that want it. You need ways of people to use certain things. And then you need one other piece which we're still building and is still not quite there, which is infrastructure.

Infrastructure is still lacking. We don't have a standard format for IWAS. We don't have oracles that are fast enough. Most oracles are as slow and they don't really have true composibility and true modularity. So this creates a certain degree of friction.

We talked about RWA loopin. I wanted to double click on that a little bit. Fabitzio know what it is but many of you don't. Let's say I have an asset right security is a big asset issuer the biggest in the world let's say I have acred on Sana what I can do is I can deposit my acred into a securitized vault which is Sacred and then I can supply Sacred to a protocol like drift that has like an isolated pool of acret and with that I can borrow USDC's that then I can use to buy acid on sana and so on and so forth and I keep making money on that and I get yield based on that. This is our WA grouping.

This is happening today. All of this part that you see on the right is secured by redstone. So uses resum price feed. We just signed an agreement to be the official oracle of securityize and we are enabling actively these DeFi RWA use cases that until just months ago were impossible. And so when we were thinking about this, we sat down as we usually do on a table.

Reson is a very dynamic team. We're very fast moving. We're very lean. One of the best team that I've ever worked with in two decades of career. And we asked the question as we usually ask, what is that this thing needs to be successful?

What is that the thing needs to scale? And we came up with one, two, three, four, five different factors and different properties. First one is easy and it's kind of straightforward. We talked about it. Real time, real time data feeds.

RWAS more than many other things need fast reliable Oracle updates not just stale prices. This is things that need to move very very quickly. Second is programmability. So we want to make sure that you know assets are usable by smart contracts and there can be repayments happening there can be hooks into the contracts that can be defaults and so on. Then obviously very very important we need verifiability and provenence and this effectively means audit status proof of ownership on chain all of the things that are actually making the institutions trust the defy part of it.

Institutions are very risk averse as they should be and so this is probably the most important factor this and speed and then finally obviously we need interoperability in the same way that we have interoperability on chain right you can move stable coins from one chain to the other from one protocol to the other very easily you should be able to do this with RWA as well it just makes sense and finally we need standardized risk And we need standardized metadata. And this in practical terms just means that every RWA should dispose risk yield terms in a way that is you know easily machine readable and and standard so that you know if something is machine readable then people can make it human readable. enter restor which is us and we are currently the fastest blockchain oracle period ever. I worked at chain link before. I know the oracle space inside out been in this space for a while.

Reson by far provides the fastest feed and I will just tell you how fast in a moment but we have the reason why we can do that is because we have a modular multi-chain architecture that effectively means that we separate all the data collection part of the oracle from the delivery part of the oracle right we support push model. So us pushing the data on chain and then we support pool models. So people requesting the data from us and then putting it on chain themselves. And this happens across over a 100 different blockchain securing 8 billion with a B dollars in TVL for over 1300 assets including a bunch of our WAS. We can be fast because we're very modular.

We can move fast. We can integrate fast but but moving fast and integrating fast is not just the old piece of the puzzle. We need to be trusted and we need to have institutional trust and adoption. I mentioned securityize a moment ago, but Black Rock Builder, VanX Treasury Fund, Apollo Acred, we talked about it, and many others, they're just using us, Restston, as the official oracle for their institutional assets. And we launched a very new brand new product just called Reststone on Bolt just I think a month and a half ago.

And Resto on Bolt is the fastest blockchain oracle ever. And the reason for that is because it pushes on chain a price update on Mega Eat which is a layer to blockchain on Ethereum every 2.4 milliseconds. That's 400 times a second. No other oracle in the space is even close to this type of speed.

One more thing which may be the most important thing. We do all this with zero mispricing events, zero downtime since inception. Since the moment that we got our first feed in production on not a test net, Reston experienced exactly zero errors, zero interruptions, zero debagging and we work with over 175 people on over 100 chains. Chains go down more often than rest does. So to wrap up as my time almost comes to an end, where is this all going, right?

So what is the future of RWA and why do we all care about that? Because we eventually will have probably RWA backstable coins. We will have onchain credit scores potentially. We will have a realward yield. we already do flowing into DeFi as well as global payment rails and crosschain composibility for all the real world values.

We released a report which is a phenomenal bedtime read if you're a nerd like myself and there is a very nice too long didn't read part at the beginning if you're not which you can access scanning the QR code or going to just redstone.inance-rwa Finance-RWA report. It's about 67 pages. Don't be alarmed. There's a lot of pictures, but we talk about this much more extensively.

Our analyst actually did an incredible job in making sure that this is accessible and consumable by most. And this is a report of rare precision and rare quality is now on the desk of every Apollo XAC in the world. It can be on your desk too. So to wrap up finally RW aren't just a bridge to trapfy. they are ringing infrastructure for the new financial primitives that we're all trying to build and move towards.

We're not talking of mass adoption. We're not talking of crypto becoming this big industry and globally recognized thing and it's becoming that. But it will become that even more because of institutional adoption. So thank you. If you have any questions, please hit me up on mike.

mmasari at resto finance or on Twitter MK Masari. It was lovely talking to all of you. Thank you for your time.