> For the complete documentation index, see [llms.txt](https://makerdao.daogov.info/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://makerdao.daogov.info/title/exercise-overview/exercise-2.md).

# Exercise 2: Understand RWA in MakerDAO

## Objective 

Developing skills and knowledge to assess risks for making informed decisions.

## Steps

1. Understand what [<mark style="color:red;">RWA (Real-World Asset)</mark>](/title/exercise-overview/exercise-2/rwa-real-world-asset-in-makerdao.md), how do they work in MakerDAO?
2. How would an increase in RWA affect MakerDAO from your stakeholder's perspective?&#x20;
3. Groups identify potential risks and benefits (e.g., governance, financial, regulatory) that are **important to their roles**.&#x20;
4. Groups are free to choose the format of risk assessments (quantitative, qualitative, or both).
5. As a class, groups discuss their risk assessments.

{% hint style="info" %}
This exercise emulates the MakerDAO community's use of "Signaling" as a pre-voting stage to "greenlight" proposals, encouraging diverse opinions to emerge and enabling proposal refinement.
{% endhint %}

{% hint style="info" %}
Consider using [Additional Information on MakerDAO](/further-reading-and-resources/additional-information-on-makerdao.md) and access [Data on MakerDAO](/further-reading-and-resources/learning-resources.md).
{% endhint %}

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© 2023 Xule Lin & Ying-Ying Hsieh. This work is licensed under a [Creative Commons Attribution-NonCommercial 4.0 International License](http://creativecommons.org/licenses/by-nc/4.0/).