RAAC is an RWA-focused DeFi protocol built to turn real-world collateral into onchain products. Its live ecosystem currently revolves around pmUSD, a mainly gold-backed stablecoin at the centre of the platform’s yield opportunities. Users can deploy pmUSD across RAAC’s various liquidity pools and vault strategies to access onchain yield, while a separate real estate-centered onchain lending arm, called RAACLend, is still in development.
RAAC stands for Real Asset Acquisition Corp, and it is an RWA-focused DeFi protocol built around the idea of taking real-world collateral and turning it into products that can be used onchain.
The main opportunities right now are in the pmUSD liquidity pools and the vault-style routes available through the app, so in this guide, we’ll look at how the protocol works, and how to use the pools and vaults to generate yield.
Before we carry on though, please be aware of the risks involved when using any DeFi protocol, which include the possibility of frontend attacks, smart contract exploits, stablecoin de-pegs, and liquidity risks. Note that there was recently a high profile exploit on the Resolv protocol, and these kinds of vulnerabilities are a real factor to consider when allocating into DeFi. You should also take a look at the official RAAC documentation before making use of the protocol.
What Are RAAC and pmUSD?
With a focus on RWAs, the main token product on RAAC is pmUSD, within what’s called the RWf(x) side of the platform (only this section is functional at the moment, but there is more in development, as we’ll cover in a moment).
pmUSD is RAAC’s own gold-backed stablecoin (it can also be backed by other precious metals–pm means precious metals–but the main backing right now is gold), and it is the center of the current user experience, as users can deploy pmUSD into liquidity pools and vaults. So, there is the asset-backed stablecoin itself, and then there is the yield infrastructure built around it.
There is also another aspect to the protocol, called RAACLend, which is building to enable lending against tokenized real estate–an area with a huge amount of potential as traditional markets and crypto rails become increasingly integrated. However, this part of the protocol is currently in testnet mode only, but it’s definitely worth keeping tabs on as it develops further.
Within the RXf(x) side of RAAC–that’s the tokenized precious metals section–TVL is currently at $117.34 million, and the protocol has been receiving growing attention recently, suggesting that it has room to expand as DeFi users search for onchain yield related to actual physical assets.
How to Access Yield on RAAC
To find yield opportunities, open the RAAC app, connect up your wallet, and you can review all the available pmUSD routes, with APR ranges and TVLs shown upfront.
These various options make use of several different protocols, so again, you need to consider all the risks involved and check all the details and relevant documentation, including security audits, as you will be exposed to multiple DeFi working parts.
On RAAC, you’ll find the Liquidity Pools section first, and you can then click on each pool to open up the interface for Deposits and Withdrawals. As an example, the pmUSD/frxUSD liquidity pool on Curve is currently offering a yield…
