Hosted by: José Pereira of Own Network
Guest: João Moreira, Founder of Mystic Finance
Date: June 27, 2025
João, can you briefly introduce yourself and Mystic Finance?
Hi everyone, I’m the founder of Mystic Finance. My background spans product sales, private equity, and crypto since 2021. Mystic is a lending protocol focused on real-world assets (RWAs), addressing a core challenge: RWAs lack secondary liquidity, which makes liquidations very difficult in DeFi. We solve this by introducing OTC-style liquidation auctions and a tranche-based lending model to manage risk and yield.
Why is liquidation such a challenge for RWAs compared to crypto?
Crypto assets benefit from deep, permissionless DEX liquidity and liquidation bots. RWAs don’t have that. With little to no on-chain liquidity, traditional liquidation mechanisms break down. Our OTC auction model allows pre-approved liquidators to bid on collateral based on their ability to hold and exit it over time.
Can you contrast lending models like Compound or Aave with what Mystic is doing?
Compound and Aave use pooled (shared) liquidity, which enables rehypothecation and greater efficiency but less risk control. Mystic uses isolated markets, like Euler or Morpho. This suits RWAs better, as each asset has unique risks. Pooling them would be inefficient and potentially dangerous.
How do you see tokenization helping unlock access to traditionally illiquid assets like real estate or private equity?
Tokenization improves access, especially for users who previously had none. But liquidation remains the big blocker. You won’t see DEX liquidity for a single real estate asset. That’s why OTC models matter. Fintechs already work this way — we’re adapting that to DeFi.
Are there use cases where RWAs can be liquidated on-chain?
Yes, for assets like gold or stocks with reliable off-chain pricing. But that introduces the Oracle problem — how do you get fast, accurate, trusted price feeds? The more liquid the asset, the easier it is. The best oracles often tie data to custodians directly rather than just market prices.
What’s currently popular on Mystic in terms of TVL and user demand?
Our top TVL product is basis trading, probably because it’s familiar to crypto users. Treasury bill markets see interest, but yields are often too low compared to DeFi rates. We’re still early — more demand will come as people get comfortable with new asset classes.
What’s your experience been like cold-starting liquidity and partnerships?
Institutions have been more responsive — they understand the risks and assets. Retail is harder to educate but has shown strong interest in familiar assets like stocks. Some products are just more institutionally aligned; others resonate better with retail.
What’s Mystic’s multichain strategy? Are you exploring new chains like Own?
We’re currently focused on Plume, but Own is definitely on our radar. Lending against tokenized stocks is a killer use case. The overlap between DeFi lending and traditional margin trading makes this a natural evolution — it’s like crypto borrowing returning to its roots.
How do you see stable RWAs enabling more sustainable borrowing for retail users?
RWAs bring stability to DeFi. If users can borrow against yield-bearing assets like gold or stocks, they get the upside while still accessing capital. It reduces risk vs. borrowing against volatile altcoins. It’s a huge opportunity for diversification and better user experience.
What’s your view on KYC and compliance in RWA protocols?
We treat compliance as essential but try to be as crypto-friendly as possible. If an asset doesn’t require KYC (e.g., not a security), we skip it. If it does, we either KYC directly or retrieve verified info from trusted partners. We only KYC users who need it — no overreach.
Any final thoughts or places where readers can learn more about Mystic?
Check us out on our webiste https://www.mysticfinance.xyz/ our X https://x.com/mystic_finance, and join the conversation in our Discord https://discord.gg/f5m2TMr7gV. We’re working to make RWA lending seamless and accessible, with real infrastructure and sustainable yield. Always happy to chat more with like-minded builders.
For the full AMA see link here: https://x.com/i/spaces/1eaKbWQObXaGX
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