Ethereum Watch

The Numun Ecosystem has officially launched, introducing a suite of applications designed to tokenize and lend against real-world assets (RWA) on the Ethereum network. This RWA-focused ecosystem is initially comprised of tokenization company Num Finance and lending protocol Vectium.

“Numun ignites the power of synergy between transparency and innovation. Our commitment lies in steering the course of finance towards a future where accessibility, security, and empowerment are not just ideals, but everyday realities for DeFi [decentralized finance] users,” said Agustin Liserra, CEO of Num Finance. “As we unveil Numun to the world, we stand on the brink of a new financial era – one that we are proud to shape and lead.”

The Numun Token is at the heart of the ecosystem, featuring a value accrual mechanism where up to 40% of lending protocol revenue is used for a buy-back-and-burn strategy. This ensures the token’s value is closely tied to the ecosystem’s performance.

Num Finance specializes in converting traditional finance (TradFi) assets such as exchange-traded funds (ETFs), stocks, and bonds into digital registers in the blockchain, called nTokens. They conducted a pre-seed funding round that gathered $1.5 million and attracted over 500,000 users in its first year with its MVP, which is the issuance of stablecoins paired to emerging markets currencies.

Vectium is an RWA lending protocol that leverages nTokens to enable users to lend and borrow stablecoins. The protocol is set to expand its services to include additional RWAs, providing a permissionless and secure way to leverage and hedge TradFi assets.

“The Numun ecosystem represents the culmination of our enduring commitment to reshaping the DeFi landscape. After years of meticulous work, we are introducing an on-chain ecosystem that makes real-world assets the epicenter,” stated Alex Kruger, Advisor and Strategic Director at Num Finance. “This is the advancement that the DeFi space has been waiting for — a transformative step in aligning the reliability of traditional assets with the innovation of decentralized finance.”

Moreover, the Numun Ecosystem is partnering with other projects, such as Impossible Finance which will collaborate to bring the Numun Token to market. Calvin Chu, co-founder of Impossible Finance, praised Numun’s approach to permissionless tokenized assets as a way to enhance interoperability and address gaps in the current financial landscape.

RWA is seen by the market as a hot narrative for this bull cycle, with tokens within this sector jumping over 285% on average in the first quarter, according to a report by CoinGecko. That’s the second most profitable narrative in this period.

The total value locked on RWA-related decentralized applications reached $6.3 billion at the time of writing, with a 10% growth in Q1, according to DefiLlama data.