✈️2. Industry

2.1 Market Environment

2.1.1 RWA

Tokenization of real-world assets is an important application of Web3 technology in the real asset and even art market. Through RWA, real-world artworks can be converted into digital tokens on the blockchain, allowing them to be traded and invested in digital markets. This approach not only enhances the liquidity of artworks but also increases their financial value. Currently, the total market value of the RWA market has reached $8 billion, and it is expected to grow to $16 billion by 2025.

Due to RWA being supported or assisted by real-world assets, it exhibits greater stability compared to the extreme volatility of virtual assets. This stability is crucial for the diversified allocation of virtual assets; a balanced virtual asset investment portfolio requires a reasonable distribution of medium to high-risk, low-risk, and risk-free assets. The introduction of RWA will promote the diversified allocation of crypto investments, rather than merely speculative trading, thereby avoiding extreme market fluctuations.

Investors have different risk preferences and tolerances, and their requirements for interest rates also vary. Therefore, regardless of whether the market is in a bullish or bearish state, there are opportunities for interest rate swaps or arbitrage, which also provide liquidity to the market. Thus, one of the keys to the success of RWA lies in how to enhance its liquidity.

When the public discusses RWA, they gradually discover its value, such as: globalization of cross-trading markets, reduced transaction costs, and improved trading efficiency, the expected consensus tokenization for emerging asset valuations like AI computing power, data, and artworks, as well as more inclusive and transparent pricing models and security. At the same time, they will also identify the issues with RWA, such as regulatory and compliance challenges, insufficient liquidity, and technological and operational risks.

2.1.2 Artwork

With the rapid development of the blockchain market, the Web3 concept has gradually integrated into the art market, bringing unprecedented opportunities. Web3 technology enables the digitization, tokenization, and online trading of artworks through decentralized, transparent, and secure transaction methods. This not only enhances the liquidity and market transparency of artworks but also provides new revenue streams for artists and collectors.

According to the "Art Basel and UBS Global Art Market Report," the art market has shown strong performance in its recovery from the pandemic, with the total value of the global art market expected to reach $75 billion by 2025. Meanwhile, Web3 applications such as NFTs and RWAs are rapidly gaining popularity, further driving the prosperity of the art market.

As more artists, collectors, and investors flock to this field, the integration of Web3 with the art market will undoubtedly continue to lead future innovation trends. RWA is reshaping the art market, bringing broader investment opportunities and greater market transparency. This trend not only drives the prosperous development of the art market but also creates more business opportunities and financial value for artists and collectors.

With the rapid proliferation of blockchain technology, the tokenization of real-world assets has gradually become a focal point of market attention. The total value of the global art market and collectibles market is measured in trillions of dollars, but issues such as poor liquidity, high transaction costs, and lack of transparency have limited the market potential of these assets. The RWA market then

By tokenizing these assets, Ultiland not only provides asset owners with greater liquidity but also ensures the transparency and security of transactions through blockchain technology.

2.2 Opportunities and Challenges

The main challenges in the current RWA market include the lack of effective asset verification mechanisms, trust issues during the transaction process, and insufficient market liquidity.

Ultiland effectively addresses these issues by introducing Sigmoid Bonding Curve asset issuance, Special Asset Entity Protocol (SAE), and A/B Shares On-Chain Lending. The Bonding Curve model achieves dynamic pricing through smart contracts, ensuring a fair market value for tokenized assets; SAE is responsible for comprehensive audits of all tokenized assets to ensure their authenticity and compliance.

We conducted a series of analyses and reflections on this and proposed the concept of Meme-like RWA.

2.2.1 RWA+Artworks+Meme

It is well known that Web3 has three directions: virtual assets (Meme), application assets (BTC, ETH), and real-world assets (RWA).

Many people question whether RWA is not a digital native token, so one can make an association: Is Bitcoin a tokenized RWA of energy?

With the emergence of BTC and ETH ETFs, Web3 is gradually breaking free from the semi-closed predicament of internal self-sustenance and external takeovers. The influx of real-world assets into Web3 will be a significant opportunity in the upcoming cycles. RWA is the physical business within the crypto industry and is the necessary path for industrial blockchain.

When the global economy is in decline, the lipstick effect has influenced the art market after the pandemic; NFTs have further ingrained the concept of digitizing art. The traditional art market relies on conventional value experiences and trading methods, while AI and blockchain technology have created a new paradigm for the digital art market, breaking traditional limitations and paving the way for emerging investment and consumption options in art, broadening the creative paths and monetization channels for artists.

In the context of RWA and the art market, putting assets on-chain is no longer the most challenging aspect of RWA development. The relevant infrastructure is already redundant, and the disconnection between off-chain continuous validation and on-chain value presentation is the main reason for its slow growth and the wear and tear of on-chain assets. Most RWA products are concentrated in expensive assets, limited to quantifiable financial products, and face complex KYC and professional knowledge barriers, making it difficult to participate as easily as with memes. Both the scale and the barriers cannot reach the consumer level.

When we think about the value presentation of art and artworks in Web3, we often instinctively associate it with NFTs. However, it is now 2024, and we are no longer the FOMO participants in the NFT bubble; we should be able to clearly recognize that:

Even NFTs cannot effectively ensure the copyright and intellectual property rights of the original author, and the created works are merely "digital versions," lacking digital financial and application value, with the relevant industrial chain also being incomplete. It is inappropriate to regard NFTs as carriers of the financial attributes of artworks, as issues of liquidity and ownership have always existed.

2.2.2 Meme-like RWA

RWA, as a security token for real-world assets, is not just about simply putting physical assets on the blockchain and then issuing a token, but rather involves three levels: from the underlying asset, to the expected return type, and finally to tokenization. Based on this, Ultiland has proposed the concept of Meme-like RWA to create more attractive and innovative financial products.

Asset Stability Combined with Meme

Asset stability is the cornerstone of RWA, and meme-like RWA enhances the perception of its stability by combining assets with popular cultural symbols. The universal appeal of memes helps build a loyal community that is not only concerned with the current value of the assets but also holds confidence in their future stability. Through meme dissemination, the stability narrative of RWA spreads rapidly, attracting more investors and holders.

Secondary Derivation of RWA Asset Value

The meme-like RWA model provides a new avenue for the secondary derivation of RWA asset value. By creatively combining RWA assets with meme culture, new financial derivatives can be developed, such as tokens or NFTs based on specific meme themes. These derivatives not only offer investors new revenue opportunities but also increase the diversity and appeal of RWA assets, thereby attracting a broader audience.

Iterative Design of Yield Farming

The meme-like RWA model combines mining patterns with meme culture through iterative design in yield farming, creating an investment method that is both fun and profitable. Community members can earn additional token rewards by participating in meme challenges, creating related content, or completing specific tasks. This approach not only enhances the appeal of RWA assets but also increases community activity and engagement.

Derivatives of interest-bearing assets

The meme-like RWA model allows RWA underlying assets to derive income-like assets. These assets, in the form of memes, create new investment value by combining current yields and future expectations. For example, a token can be designed that is related to a specific meme, whose value depends not only on the performance of the RWA assets it represents but also on the community's enthusiasm and participation in meme culture.

Dual Design of Real Assets

In the Meme-like RWA model, real assets are endowed with a dual design of current returns and future expectations. This design not only considers the immediate returns of the asset but also the potential value of the asset as time passes and community engagement increases. Through the dissemination of Meme culture and community co-creation, RWA assets can achieve continuous growth and expansion of value.

Through the aforementioned methodology, the Meme-like RWA model injects new vitality into traditional RWA by combining the power of Meme culture and community, creating more attractive, interactive, and innovative financial products. This model not only enhances the market performance of RWA but also promotes innovation and development across the entire blockchain finance sector.

2.3 Summary

The RWA circuit is full of opportunities as well as many challenges. Regulation and compliance, lack of liquidity, technological and operational risks, and market acceptance are the main pain points at the moment. However, the prospect of asset diversification, stable cash flows and returns, market expansion, and innovation and growth make RWA a highly sought-after segment of the crypto market.The Meme-like RWA model significantly improves the liquidity and market acceptance of RWA assets by capitalizing on the propagation properties of Meme culture, addressing the aforementioned pain points while opening up new opportunities for asset diversification, stable cash flows and returns, market expansion, as well as innovation and growth. With the continuous progress of technology and the gradual maturity of the market, Meme-like RWA is expected to play a greater role in the future and promote the deep integration of blockchain and traditional financial markets.

At Ultiland, art is not only a source of inspiration for creativity, but also a form of embodiment of assets. Through the dissemination of Meme culture, the value of art and real assets can be tested in the market, helping quality assets to gain heat and liquidity at an early stage.Meme as a kind of performance art, combined with RWA, brings more creative and business opportunities for art and investors.