Hot take: private credit is the best RWA to hold and the worst one to borrow against. @PanteraCapital showed in their latest report that it's already the most used RWA in DeFi, with 44.7% of it sitting in DeFi protocols. Here's why that's risky: 1) DeFi lending relies on selling collateral fast when loans go bad. 2) Private credit exits through redemptions that can take weeks and get gated in a crunch. 3) So when collateral needs to be sold, liquidations fail and bad debt piles up. 4) The USDC lenders who thought they were earning "safe" yield are the ones left holding it. Liquidity is still an issue for some RWAs, especially private credit. I'd be really careful looping it, it's probably not worth it for a few extra % APR. Not every asset is meant to be looped or leveraged.