Is RAAC Safe?

|RWA
C

Risk Grade: C (49/100)

RAAC is rated as elevated risk — multiple novel mechanisms and notable interaction risks.

RAAC is an ambitious protocol attempting to bridge physical asset ownership with DeFi lending. The novel approach to real estate and gold tokenization has significant potential but carries substantial execution risk. Pre-mainnet status, unproven liquidation mechanics for physical assets, and jurisdiction-dependent legal enforceability create elevated uncertainty. High-risk, high-potential profile.

RAAC (Regnum Aurum Acquisition Corp) is a DeFi protocol that tokenizes real-world assets like real estate and gold, allowing them to be used as collateral for on-chain borrowing and lending. It uses NFTs to represent property ownership with legal rights and is building a commodity-backed stablecoin (pmUSD).

TVL

$133M

Mechanisms

7

Interactions

5

Value Grade

D

Key Risks for RAAC Users

1.

The protocol is still pre-mainnet — smart contracts have only been tested on testnet, meaning production bugs could affect your funds

2.

Selling real estate collateral takes weeks or months, not seconds — liquidation may not work as quickly as in normal DeFi

3.

Legal enforceability of property-backed NFTs is untested and varies by country

Top Risk Factors

  • Real estate and gold tokenization introduces complex off-chain valuation and legal ownership risks that are difficult to enforce on-chain
  • Pre-mainnet protocol with testnet-only validation — $131M TVL represents committed capital without production-tested smart contracts
  • Oracle dependency for real-world asset pricing creates manipulation and staleness risks that could cascade through lending positions

Risk Score Breakdown

RAAC's highest risk area is Regulatory Risk (8/10). Here's how each dimension contributes to the overall 49/100 score:

Mechanism Novelty8/15
Interaction Severity10/20
Oracle Surface5/10
Documentation Gaps3/10
Track Record4/15
Scale Exposure5/10
Regulatory Risk8/10
Vitality Risk6/10

Read the Full RAAC Risk Report

This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.

View Full Report →

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Ratings use Hindenrank's eight-dimension risk rubric. Lower score = lower risk. Grades range from A (safest) to F (riskiest). This is not financial advice.