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.
Top Risks
1
Real estate and gold tokenization introduces complex off-chain valuation and legal ownership risks that are difficult to enforce on-chain
2
Pre-mainnet protocol with testnet-only validation — $131M TVL represents committed capital without production-tested smart contracts
3
Oracle dependency for real-world asset pricing creates manipulation and staleness risks that could cascade through lending positions
Risk Breakdown
Frequently Asked Questions
Is RAAC safe to use?
RAAC receives a C risk grade (49/100) from Hindenrank, where lower scores indicate lower risk. 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).
What are the main risks of using RAAC?
The key risks identified for RAAC are: (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
What is RAAC's risk score breakdown?
RAAC scores 49/100 across eight risk dimensions: Mechanism Novelty: 8/15, Interaction Severity: 10/20, Oracle Surface: 5/10, Documentation Gaps: 3/10, Track Record: 4/15, Scale Exposure: 5/10, Regulatory Risk: 8/10, Vitality Risk: 6/10. The highest risk area is Regulatory Risk at 8/10.
How does RAAC compare to other RWA protocols?
Among 72 rated RWA protocols on Hindenrank, RAAC ranks #64 by safety (lowest risk score = safest). Its 49/100 risk score and C grade place it among the riskier RWA protocols.
Has RAAC ever been hacked or exploited?
RAAC scores 4/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.