This formed a liquidity pool available for others to borrow from,
the knowledge learned about lending.
Once tokenized, these assets can be used as collateral
The real meaning ◇ terms like collateral, cyclical or tokenized risk
Terms like real-world assets (RWA) sound very complex.
messy. But through hands-on experience, I realized that Plume makes
This makes everything simple and practical.
What is lending on Plume
Lending on Plume Network is using tokenized
real-world assets (RWA) and cryptocurrencies to borrow
Earn, borrow, or yield.
Think of it as a digital bank but powered by blockchain
Supportive, compliant, and designed for scalable finance
it.
How lending works on Plume
G
Here's a step-by-step breakdown of what I've learned:
Step 1: Tokenize RWA
Real-world assets, such as real estate, private equity
Lending, even yield tokens, are tokenized and brought into
Plume Network.
Step 2: Use as collateral
for loans.
products.
You can also use crypto assets, such as:
$ pETH (Plume ETH, a liquidity staking derivative)
derivatives)
Yield-generating stablecoins
Step 3: Access the lending protocol
Plume has a comprehensive lending platform where users can
to store assets.
Reborrowing stablecoins that yield, and users can
while depositors can earn interest.
Step 4: Make money or borrow money
Lenders earn interest by providing liquidity.
Borrowers can use their tokenized RWA or crypto assets
Use tokens as collateral to borrow.
Real examples I observed
a) Yield-generating tokens
I saw how $ pETH was used as collateral, which means
You can stake ETH, earn rewards, and still make
Borrowing with tokens or earning more yield.
b) Stablecoin recycling
This surprised me: through cyclical borrowing and
Before this, I had no understanding of crypto lending.
to increase yield.
My journey highlights
Lending isn't as complicated as I imagined; Plume simplifies
Tokenized the entire process.
The power of tokenized assets lies in their
earn, borrow, and recycle simultaneously.
Compliance and scalability make Plume ready for
Widespread adoption in RWAfi.
Next steps for beginners
Start with a small amount to understand the process.
Understand the risks: liquidation, volatility, and platform-specific rules
are.
Once you feel comfortable, you can explore yield stacking and
strategies like recycling, etc.
