Regulatory risk: RWA-backed stablecoins face stricter regulatory scrutiny, especially in regions with more regulated financial markets such as the United States.
Technical risk: Smart contract vulnerabilities or attacks may cause damage to user assets.
Market competition: Facing fierce competition from established stablecoins such as USDT and USDC and emerging DeFi products.
Growth dependence: The rapid growth of TVL may be a short-term driving force. If the growth slows down, it may affect the protocol revenue and token value.