Is the infrastructure an aerial refueling station for RWA tracks? What level of expectation should be maintained for Plume? @The emergence of plumenetwork is seen as the next milestone in the RWA track, ensuring complete compliance in the form of infrastructure and combining RWA with DeFi on this basis. It looks perfect, but can Plume really become a "super giant" to break the "Maria Wall" of Crypto? The narrative of RWA has been going on for many years, and everyone knows that it has broad limits. The beautiful narrative may bring incremental funds that the crypto industry has never seen before. But the phrase 'thunder and rain, small dots' has been a clear perception in the market for a long time in the past. The high threshold and long cycle make RWA in Crypto a game for institutions - funds come in, but only stay there. The reason is that in order for Crypto to enjoy the incremental funds of RWA, it must accept the corresponding game rules. The supervision and regulations under the shadow of "incremental" have separated Crypto's RWA from the masses and put it on the shelf. This article first returns to the three doubts when studying Plume, and then analyzes its advantages and disadvantages based on its fundamentals, attempting to answer whether Plume is the most reliable value capture in the RWA track? Firstly, why do we need to build infrastructure on the RWA track? There are three reasons: 1. The segmentation track of RWA is too fragmented: real estate assets, art collections, securities assets, supply chain finance, cross-border trade, etc. The learning and transaction costs of moving between different platforms are too high; The difficulty of off chain compliance endorsement is high, and users need to hold trust assumptions for different physical mapping assets separately. There is a shortage of endorsement platforms that integrate professional institutions in the market; The risks associated with regulatory and legal frameworks are the easiest to understand but also more difficult to overcome obstacles. Plume, in the form of Infra, has corresponding solutions for the above pain points, as detailed below. Secondly, what is the product moat that can only be realized after the infrastructure is built? If Plume only focuses on coin issuance and compliance platform, then it has only completed its first step in envisioning RWAFi. While building a complete framework, Plume combines the advantages of blockchain and combines RWA with DeFi, breaking the dilemma of low trading volume and low attention of traditional financial RWA projects. How to break it? Lowering the entry threshold for RWA assets - users can start various profit oriented operations in Plume wallet; Improving Security - Plume flexibly responds to regulatory requirements with modular thinking, combining high security with low barriers to entry, making Plume attractive to existing cryptocurrency users and having the potential to transform the low liquidity dividends of entering Crypto into high liquidity assets on the chain that users can play with. Plume's core appeal is to attract institutions into a thriving ecosystem. Therefore, Plume's answer to defining this prosperity is to provide real benefits and real use cases. The consensus among all IQ100 players is to search for PMFs in the industry with real profits after the Memecoin narrative has come to an end. This is also the focus of investors when I mentioned the return to long termism in my previous article. The final question before delving into the fundamentals of Plume is, do RWAFi have any advantages over DeFi? What risks do we need to take in order to achieve these advantages? The revenue type of DeFi is endogenous revenue, and the logic of the three types of Ponzi schemes can cover most DeFi protocols, that is, these profits are generated and transmitted in a closed loop system. Crypto players will think about who will take over the DeFi protocol when faced with it? To whom? What kind of beautiful logic should be depicted for the buyer? These subconscious ways of thinking are caused by the objective volatility of returns and the fact that Ponzi's token model will always collapse at some point. The combination of RWA and DeFi breaks through the limitations of endogenous returns, and on the premise of improving the liquidity of RWA assets, gains additional returns through lending and pledging operations, allowing real assets to receive DeFi assistance and consolidating the value foundation of DeFi returns. There are many introductions to the fundamentals of Plume, so I will briefly summarize them along the line of "real assets and real returns". Firstly, there is Plume's asset management classification. Plume is the RWA infrastructure and manages RWA assets on the platform, with the first batch of 180+ecological projects and a management scale of 1.25 billion assets. From the perspective of asset management types, there are three categories. namely: Collectibles: sneakers, Pok é mon cards, watches, wine, and artworks Alternative assets: private equity loans, real estate or green energy projects Financial Instruments: Stocks or Corporate Bonds Next, let's review the pain points of RWA assets: Many RWA projects excessively restrict their assets on the chain in a way that reduces their liquidity to achieve compliance, such as requiring KYC, setting 3-5 year lock up periods, or only providing 3-5% low returns. Plume's solution to this is not just to tokenize physical or synthetic assets on the chain, but to go further and make these assets useful. Bring real returns through income generating assets and introduce real users through existing markets. In order to serve this goal, Plume made changes when assets were put on the chain, determining the issuance form: NFT, token, or combination asset. By shaping products rationally, we can improve asset liquidity, increase returns, and reduce risks. Buying these assets can earn a stable coin annual yield of 10-20%, as well as additional native tokens and Plume incentives for the protocol. In order to make this architecture run smoothly, Plume's four main suites play an important role, namely: Tokenization token issuance system Arc; Nexus, a dedicated oracle for RWA track; Aggregate asset management public tools and integrate different token standards and other on chain DeFi composability smart wallet Passport; SkyLink, a cross chain bridge that allows users to obtain institutional level RWA revenue without permission through mirrored YieldToken. Therefore, in order to attract institutions to enter, Plume's major premise is to build a prosperous RWA public chain. In order to achieve this goal, it is necessary to attract native encrypted users. Plume offers two types of preferred asset areas: first, income generating assets, such as green energy projects, which are safe and stable. However, from the official website's ecological list, it was found that there are not many green energy projects that can be participated in, and some projects that open up solar asset channels need to be locked in for 5-10 years. The second category is trading and investment model users. Plume believes that speculation on sneakers or cards is a widespread demand, so for these types of assets, Plume provides trading methods such as inventory sweeping, mortgage lending, and asset synthesis. For security and integrity, they can be discussed in terms of physical assets and revenue assets. The tokenization of physical assets involves storing them in a secure location and minting a tokenized version of the asset on the chain; Income assets will be directly integrated with equipment, such as solar energy equipment. Finally, there are regulatory and legal requirements, in order to cope with different regulatory requirements in different regions. Plume's approach is to rely on corresponding partners and flexibly switch licenses to correspond. After discussing the fundamentals of Plume, it can be seen that its advantages and disadvantages are very obvious. The advantage is that it is comprehensive and meets regulatory legal requirements; Provide a complete solution from development to operation, ensuring a smooth path for physical asset issuance; After Binance's investment, it occupies the leading position in RWA infrastructure. Once RWA hotspots return, the probability of PLUME being hyped is high; The narrative hype of RWAFi has come into view, and real assets with real returns have added new temperament and imaginative space to Crypto. The ultimate pursuit of RWA in the crypto industry is incremental growth, incremental funding, and incremental user growth. Plume provides the lowest level of support for the RWAFi public chain platform in the form of infrastructure. As long as the market value of the RWA track steadily increases in the future, Plume has a high expected ability to capture value first. The core users of Plume are institutions and DeFi protocols, therefore targeting the vast majority of capital increments. Web2 institutions can use Plume's complete infrastructure to transform traditional assets into Crypto operable RWA assets, and combine them with corresponding DeFi gameplay to reduce friction caused by development and migration, and achieve accelerated iteration. However, there are also corresponding drawbacks. Plume seems to have over 180 ecological projects, but this data has not grown for nearly half a year. The first ecological launch seems that Plume has played all the cards in hand, and the actual activity of the ecosystem is not optimistic. Plume appears to be a compliant and comprehensive shell that enables institutions to seamlessly integrate and migrate existing DeFi protocols. Plume is a project that requires attention to fundamentals because it is infrastructure. But in the past year, the market has turned pale when it comes to infrastructure, with a large number of empty infrastructure becoming ghost cities after coin issuance. Setting aside chip analysis, the label of infrastructure is Plume's characteristic and may also become a source of resistance for retail investors. Is Plume the most reliable value capture on the RWA track? Currently, it may be, but in the future, it is highly likely to be replaced. The significance of RWA lies in increment, increment of funds, and increment of users. Plume currently has persuasive appeal in terms of incremental funding, but it may not necessarily be effective in increasing user base. Returning to the real use cases of income generation in Plume's preferred asset areas, such as power plants and oil wells, followed by trading speculative sneakers and sports star cards, whether these two assets really need to be put on the chain has not been proven. In fact, Plume's current operating protocols are mostly based on US bonds. Plume's preferred asset area has not been proven, and the competitiveness of its products on the US bond chain may not be sufficient. Secondly, with the explosive increase in users, the usage mode of the product must be simple. For most retail investors, assets such as bonds, private equity loans, and real estate are relatively distant, and the time cost and expected benefits are not equal. Secondly, the issuing entities of such assets are relatively limited, and it is difficult for Plume to attract these assets to the platform, which involves friction in resource cooperation, legal terms, and other aspects. Therefore, at first glance, Plume's actual available asset classes are very limited: green energy projects, NFT card assets, and US bonds. It seems that none of the three types of assets can attract large-scale retail investors to participate. Therefore, there must be someone else in the RWA track that attracts user growth. Listing on the US stock market is the core scenario of To C. As @ Wuhuoqiu mentioned, it is a process from 0 to 1 to connect an asset on the chain for users who did not have a channel to purchase it before. summarize The prospects of RWA are broad, but there are only a few infrastructure specifically designed to address traditional asset management and improve on chain connectivity. Plume is the infrastructure of an RWA track, which is a vertical full stack architecture. In summary, Plume provides security and integrity certificates for real assets on the blockchain, and RWA assets on the blockchain are no longer fragmented. Through Plume's wallet, DeFi applications such as yield farming can be participated in, and on this basis, regulatory risks of different RWA assets in different regions can be fully covered, allowing ecological applications to enjoy the natural traffic of the platform's wide user base. This is the definition of Plume's vertical architecture, whose relative integrity is scarce in the market, because for ToB's RWA assets, to truly integrate RWA assets with DeFi gameplay, a high integrity network architecture, rich and complete ecological structure, and a smooth development kit are essential. But for retail investors, the RWA asset types offered by Plume may not be attractive enough, but this is already the ceiling of RWA inflation in the market. So, Plume's ultimate target customer group is institutions, building end-to-end RWA assetization services for traditional assets from bottom to top. The ecosystem attracted by the vertical architecture and the incentive to attract users are all stepping stones to attract more top institutions. Before the emergence of US stocks or other innovative RWA products on the chain, Plume relied on Binance investment to obtain Buff, and by utilizing the aggregation effect of RWAFi, could become the Infra leader in the RWA track,. The value capture of Plume comes from the acceleration of the narrative process, therefore, buying or participating in Plume should hold the above reasonable expectations.