Yuki Yuminaga on Why Tokenized Assets Are Broken Onchain

Explores tokenizing real-world assets and market-structure shifts: when AMMs fit, when order books/prop‑AMMs win, and how atomic mint/redemption reduces liquidity risk.

Key Takeaways

Tokenize via futures (e.g., CME‑backed) to mirror spot exposure, capture basis decay as yield, and hedge volatility—protocols cover premiums using USDC collateral and low‑risk yields.
Design for atomic minting/redemption and keep USD collateral as USDC to process roughly 70% of redemptions quickly, reducing AMM reliance and mitigating bank‑run risk.
AMMs remain valuable for memecoins, BTC‑ETH pairs and stable swaps, but many tokenized or mid‑tier assets need order books, prop‑AMMs or market makers for depth and low slippage.
On‑chain systems must equalize pricing and liquidity with off‑chain venues: match settlement speed, provide deep liquidity, and offer 24/7 access to attract institutional and retail flows.
Beware hedging costs: high hedging premiums compress token yields (realistic net yields ~0.5–1%); gold lending offers 2–3% with long lockups—structure products accordingly.
Improve infrastructure to prevent MEV and slippage failures—large on‑chain market orders (e.g., $50M) cause severe slippage; prefer order books or aggregator-driven, prop‑AMM solutions.

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