Comet Finance aims to bring real-world assets (RWAs) onto the blockchain, providing decentralized finance (DeFi) users access to opportunities previously unavailable. Their core strategy revolves around fractionalizing these assets and creating markets that allow for trading, lending, and borrowing. Comet’s deals often involve identifying undervalued or underutilized real-world assets, securing their acquisition (or a stake in them), and then tokenizing them for use within the DeFi ecosystem. One prominent aspect of Comet Finance’s deals is the rigorous due diligence process they employ. They carefully assess the legal, financial, and operational risks associated with each potential asset. This includes detailed analysis of cash flows, market conditions, and regulatory compliance. They also collaborate with legal experts to ensure that the tokenization process adheres to all applicable laws and regulations, which can vary significantly depending on the jurisdiction and asset class. The tokenization process itself is crucial. Comet typically issues security tokens that represent ownership or a claim on the underlying real-world asset. These tokens are designed to be compliant with regulatory frameworks and often incorporate mechanisms for distributing dividends or profits generated by the asset. The tokens are then made available on decentralized exchanges (DEXs) or through Comet’s own platform, allowing users to buy, sell, and trade them. Lending and borrowing against these tokenized RWAs forms another key component of Comet’s strategy. They aim to create lending pools where users can deposit stablecoins or other cryptocurrencies as collateral and borrow against the value of their RWA tokens. This enables users to unlock liquidity from their real-world assets without having to sell them. Interest rates within these lending pools are typically determined algorithmically based on supply and demand. Comet’s deal structures can vary depending on the specific asset. For example, they might fractionalize real estate properties, enabling users to own a share of a building and receive a portion of the rental income. They might also tokenize receivables or invoices, allowing businesses to access short-term financing by selling their outstanding invoices to the DeFi market. In some instances, they could even tokenize commodities or intellectual property. A critical factor in the success of Comet Finance’s deals is the quality of the underlying asset. They focus on acquiring assets with strong fundamentals and potential for growth. Transparency is also paramount. Comet provides detailed information about the assets underlying their tokens, including financial statements, legal documentation, and performance metrics. This transparency helps build trust and confidence among users. Finally, Comet Finance actively manages the underlying assets to maximize returns for token holders. This could involve property management, revenue optimization, or even selling the asset at a profit and distributing the proceeds to token holders. They often partner with experienced operators in the relevant industries to ensure effective asset management. By combining the power of DeFi with the stability and predictability of real-world assets, Comet Finance seeks to create a more efficient and accessible financial ecosystem.