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Explain How an Existing Product Can Be Used as Collateral in a Decentralized Finance (DeFi) Derivative

Tokenized real-world assets (like real estate) or their revenue streams are locked in a DeFi protocol to back loans or synthetic derivatives.
Greeks.Live15.11.25

Explain How an Existing Product Can Be Used as Collateral in a Decentralized Finance (DeFi) Derivative.

The revenue stream or tokenized representation of an existing product can be used as collateral. For instance, a tokenized real estate asset (a security token) can be locked into a DeFi protocol to borrow funds or to back a synthetic derivative.

The protocol assesses the value of the underlying product/asset and allows a loan or derivative position against it. This bridges traditional assets with decentralized finance, expanding collateral options beyond native crypto.

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