Chiliz expands SportFi ecosystem… unveils RWA-based sports DeFi model

According to Chiliz on the 22nd, the model was implemented through collaboration with Decentral Protocol, a Chiliz chain-based sports finance-specialized protocol. Decentral is an RWA DeFi protocol designed to tokenize future media revenue rights such as broadcast rights held by football clubs so they can be used for immediate fundraising.

Although the global sports industry holds high asset value through broadcasting rights and sponsorship contracts, it has struggled to secure short-term liquidity due to a structure in which revenues are paid out in installments over a long period. Financial burdens concentrate at times when large-scale funding needs arise, such as player acquisitions or infrastructure investments.

The Chiliz chain-based DeFi model focuses on solving these problems. It is designed to record clubs' future media revenue rights on-chain as RWAs and to enable the procurement of stablecoin liquidity using them as collateral. This is said to reduce reliance on traditional bank loans and increase transparency in the fundraising process.

Decentral has formed a USDC liquidity pool of about $1,000,000 in the initial phase. The pool operates with a 90-day lockup condition and an annual 12% yield structure, providing clubs with collateral-based funding means and offering investors RWA investment opportunities linked to actual sports industry revenues.

This case is seen as showing that the Chiliz chain is expanding beyond a fan token-centered participatory platform into the financial infrastructure of the sports industry. Analysts also say it has full-fledgedly initiated the so-called 'SportFi' ecosystem through a real-asset-based DeFi structure.

Alexandre Dreyfus, Chiliz CEO, said, "This collaboration shows that SportFi has entered a stage beyond a concept to actually solving the financial problems of the industry," and added, "The Chiliz chain will continue to provide an environment where the asset value of the sports industry can be connected to on-chain finance."

The Chiliz chain is an Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain and has partnerships with more than 70 global sports clubs and leagues, including Paris Saint-Germain (PSG), FC Barcelona, and Tottenham Hotspur.