The DeFi ecosystem has been plagued by two major issues—liquidity fragmentation and inefficient utilization of collateral assets. These problems have hindered the growth potential of the entire industry. Some projects are attempting to break through this bottleneck from the perspective of "universal collateral infrastructure," redefining the way on-chain assets generate value.

**Breaking the Limitations of Single Collateral**

Traditional DeFi protocols often only recognize a specific cryptocurrency as collateral, severely limiting user options. The new generation of solutions changes this logic—supporting the combination of mainstream crypto assets and tokenized real-world assets (RWA) as collateral. This "virtual-physical integration" approach sounds simple but has far-reaching implications. Once real-world assets are successfully tokenized and incorporated into the on-chain collateral system, the traditional financial credit market worth trillions of dollars could gradually flow into blockchain. This is a qualitative leap in supplementing on-chain liquidity.

**Stability Breakthroughs in Synthetic Assets**

Through over-collateralization mechanisms, projects issue synthetic USD products to create efficient liquidity tools for users. Compared to traditional lending protocols that face "liquidation risks" caused by sharp volatility, this infrastructure optimizes collateralization models, allowing users to obtain stable liquidity without being forcibly liquidated.

Even better, users can participate in various investment opportunities on-chain with synthetic assets while retaining ownership and appreciation potential of their original assets. Assets are thus fully utilized—protecting their original value while generating additional income.

This design logic is attracting more and more participants, driving DeFi toward deeper financial infrastructure evolution.