Today, when I was browsing the Binance wallet activity, a number suddenly caught my attention——13% annualized.
To be honest, seeing such a high yield in the market, I no longer immediately think "I must jump in quickly."
My first reaction instead was: Where is this money actually being invested?
After all, in investing, I have always felt that one phrase is particularly true:
The yield determines whether you'll click in, but where the yield comes from decides whether you dare to invest your money.
So, I spent some time going through the public information on this product.
If you recently came across this activity, I hope this article can save you some time.
📌 What is this activity?
This is a recent DeFi exclusive event launched by the Binance wallet.
During the activity period (July 15—July 19), users can purchase USDC through the Pharos R25 Axil Prime 3M USDC fund pool. In addition to the yield generated by the fund pool itself, users can also participate in sharing $300,000 worth of PROS rewards according to the activity rules.
Many people will be attracted by "13% annualized" at first glance.
But what I am more concerned about is: Where does this yield actually come from?
💰 Where will my money ultimately flow?
I checked the public information, and the entire process is actually not as complicated as I imagined.
You deposit USDC
│
▼
Enters the R25 fund pool
│
▼
Configured by Axil Prime to underlying assets
│
▼
Underlying assets continue to generate yields
│
▼
Yields return to the fund pool
The real aspect worth focusing on is this link: underlying assets.
According to public information, Axil Prime mainly manages real-world credit assets, such as corporate loans, consumer loans, etc.
Simply put: This money is not lent to others for trading cryptocurrencies but flows to borrowers in the real world with financing needs, who pay interest, forming the source of yield.
Compared to many products that completely rely on on-chain lending demand, the source of yield from this model can be more diversified.
🌍 Why do many people mention RWA?
While researching, I found that many people relate this type of product to RWA.
Actually, it doesn't have to be thought of as too complicated. RWA (Real World Assets) translates to real-world assets.
In one sentence, it means: Allowing on-chain funds to have the opportunity to invest in assets in the real world.
For example, corporate loans, consumer loans, U.S. Treasury bonds, real estate income rights, etc. These are common underlying assets of RWA.
According to public information, the real-world credit assets involved by Axil Prime are typically classified under RWA-related directions.
However, there is one point that needs to be distinguished: RWA is a category of assets, not a specific product.
Different products invest in different assets, and the risks and sources of yield may also vary completely, so it cannot be equated just because they are all considered RWA.
⚠️ If you are considering participation, I think you should confirm these points first
① This is a product with a 3-month duration.
During the lock-up period, early redemption is not allowed, so it is more suitable for idle USDC that won't be needed in the short term.
② Rewards are distributed in PROS.
Activity rewards are not in USDC, but in PROS tokens, so the value of the rewards will fluctuate with market prices.
③ No matter how high the yield, don't forget to consider the risks.
Every investment product has risks.
In addition to the yield, it is important to understand potential credit risk, liquidity risk, operational risk, and smart contract risk associated with the product. Clarifying how the money is earned before deciding whether to participate is always a wise choice.
✍️ Finally, let me share my thoughts
After looking through the entire product, my greatest takeaway is not "13% annualized."
Instead, I discovered that more and more on-chain products are beginning to attempt to link yield sources with real-world assets, rather than solely relying on internal borrowing within the crypto circle.
As for whether this model will become more popular in the future, no one knows that yet, but at least it offers a new perspective.
If you do not have a Binance account, you can first complete the registration and open the Binance wallet before participating in this activity.
Registration link:
https://jump.do/zh-Hans/xlink-proxy?id=3
(Invitation code: aicoin668, enjoy a 10% rebate)
There is no standard answer for investments.
But I feel that regardless of whether you ultimately participate, it is worth understanding one thing first: Where does the yield actually come from?
Join our community to discuss and become stronger together!
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Binance benefits group:
https://www.aicoin.com/link/chat?cid=gmLgwvKD1
Risk warning: This article is based on the announcement of the Binance wallet activity and the project's public information, intended only for product mechanism analysis and does not constitute any investment advice. The cryptocurrency market is highly volatile, please participate within your risk tolerance.
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