Analysis of National Debt RWA and Its Implications

In the cryptocurrency market, government bond-like RWA projects are growing rapidly, with tokenized government bond assets approaching $700 million, a 240% increase since the beginning of the year. The government bond RWA in MakerDAO has also reached a scale of billions of dollars. Government bond RWA holds significant importance for the crypto world:

1. Provide a relatively safe and stable income-generating place for U-based investors.
2. Helps to launch hybrid equity-debt financial products and promotes DeFi asset management innovation.
3. Provide a stable source of income for the project, especially during bear markets.

Currently, there are 5 main business models for RWA government bonds: agency model, platform model, infrastructure model, self-operated model, and hybrid model. The underlying assets mainly include US Treasury ETF, US government bonds, and a combination of US Treasuries with agency bonds, cash/reverse repos.

The asset-side business architecture mainly includes trust architecture, SPV architecture, lending platform + SPV architecture, and on-chain fund share types. As the scale expands, the scalability of the architecture will become increasingly important.

User-end requirements mainly differ in terms of investment threshold, KYC requirements, and regional restrictions. The profit distribution strategies mainly include direct debt distribution and deposit interest rates. In terms of composability, projects without KYC have a greater advantage.

Characteristics of potentially winning business models in the future:

• The underlying assets use government bond ETFs or directly purchase U.S. Treasuries.
• Strong scalability of business architecture
• No KYC, no threshold restrictions for users
• The yield is consistent with the yield of government bonds.
• Highly composable, rich application scenarios

In the long run, lightweight KYC projects may have more advantages. Project parties need to seek a balance between regulation and user experience.