Overview of the Market
As of 2024, the market for Real World Assets (RWA) lending protocols in Web3 has grown significantly, with a total value locked (TVL) exceeding $42.8 billion and a cumulative loan volume of over $29.2 billion. This market includes various assets such as real estate, treasury bonds, commodities, and corporate debts.
| DeFi Protocols | TVL | Total Loan Volume | Revenue Streams | Profit Distributions |
|---|---|---|---|---|
| AAVE | $20bn | $12bn | Interest Fees | |
| Flash Loan Fees | ||||
| Protocol Fees | Liquidity Providers - 85-90% | |||
| Protocol Treasury - 10-15% | ||||
| Compound | $12bn | $8bn | Interest Fees | Liquidity Providers - 85-90% |
| Protocol Treasury - 10% | ||||
| MakerDAO | $7bn | $5bn | Stability Fees Liquidation Fees | Protocol Treasury - 100% |
| RWA Protocols | ||||
| Maple Finance | $500m | $400m | Interest Payments | |
| Origination Fees | Liquidity Providers - 80% | |||
| Protocol Treasury - 20% | ||||
| Centrifuge | $500m | $400m | Asset Origination Fees | |
| Transaction Fees | Liquidity Providers - 85% | |||
| Protocol Treasury - 15% | ||||
| GoldFinch | $300m | $200m | Interest Payments | |
| Service Fees | Liquidity Providers - 80% | |||
| Protocol Treasury - 20% | ||||
| Clearpool | $150m | $350m | Interest Payments | |
| Borrowing Fees | ||||
| Protocol Fees | Liquidity Providers - 80-85% | |||
| Protocol Treasury - 15-20% | ||||
| TrueFi | $160m | $1.7bn | Interest Payments | |
| Loan Origination Fees | ||||
| Liquidity Providers - 85% | ||||
| Stakers - 10% | ||||
| Protocol Treasury - 5% | ||||
| Credix | $20m | $150m | Interest Payments | |
| Transaction Fees | ||||
| Service Fees | Liquidity Providers - 85% | |||
| Protocol Treasury - 15% |
Combined Market Metrics
• Total Value Locked (TVL): $42.8 billion
• Total Loan Volume: $29.2 billion
Revenue Streams and Earnings Models
• Average borrower interest rate: 14-20% per annum.
• Protocol commission: 1-2% of the interest rate.
• Management fees: 0.5-1% of the total assets under management (AUM).
• Pool delegates receive the majority of the management fees (70-80%).