Represents a different risk profile than crypto assets, with illiquidity (30-90 day redemptions) and sudden 'gap down' risk, as demonstrated by a recent 2% markdown due to a corporate fraud in the underlying portfolio.

Highlighted as a key example of the risks of using illiquid RWAs in DeFi. Its monthly redemption window prevented borrowers from liquidating their collateral during a liquidity crunch on Morpho, leading to unsustainable borrow rates.