Pharos Network, a Layer 1 blockchain focused on real-world finance (RealFi) and artificial intelligence, has announced Faroo as the inaugural project of its Pharos Incubation Program. The incubator, valued at $10 million, will provide Faroo with comprehensive investment and resource support at a confirmed $10 million valuation.
Alongside the incubation announcement, Faroo is launching its RWA Hybrid Vault, a product designed to expand yield opportunities for holders of Pharos's native token, $PROS. The vault combines native staking rewards with returns generated from real-world assets (RWAs), offering diversified yield exposure within a single protocol.
Strategic Investment in RWA-DeFi Convergence
Pharos launched its $10 million incubator program in February 2026 with the goal of bridging real-world assets with on-chain finance. The program supports early-stage teams building at the intersection of RWA and decentralized finance (DeFi). Participating teams receive end-to-end support, including technical guidance, product launch assistance, and access to Pharos's global investor network.
While RWA has become a dominant narrative in the crypto industry, much of the market remains in what Pharos describes as a “static tokenization” phase—assets that lack composability and cannot function effectively as collateral within the broader DeFi ecosystem. Faroo was selected for its technical foundation in liquid staking infrastructure and its alignment with the Pharos ecosystem.
With this investment, Faroo joins the Pharos RealFi Alliance, taking on a central role in the ecosystem's liquidity infrastructure. The Faroo team has deep expertise in cross-chain staking infrastructure, building upon Bifrost's SLPx module to deliver Layer 1-grade security and native cross-chain interoperability.
Hybrid Yield Mechanism and Ecosystem Integration
At the core of Faroo is its proprietary “Hybrid Yield” mechanism, which combines on-chain staking rewards with returns from real-world assets. This approach provides users with diversified yield exposure, bridging decentralized technology with regulatory compliance.
Pharos Network is a financial-grade, asset-native Layer 1 designed to bring an estimated $50 trillion in real-world assets, traditional finance, and cross-chain capital into a modular on-chain economy. The network launched its Pacific Ocean mainnet and the $PROS coin in April 2026, having raised a cumulative $52 million to date. Faroo is deeply integrated into this ecosystem, leveraging Pharos's native coin economy, the RealFi Alliance's RWA asset pipelines, and the network's compliance framework.
For context on the broader RWA tokenization landscape, see our coverage of CertiK Joins XDC Network as Institutional Validator, Boosting Security for Trade Finance and RWA Tokenization.
Expanding Utility for $PROS Holders
The launch of the Faroo RWA Hybrid Vault marks a meaningful expansion in utility and yield opportunities for $PROS stakers. Users can lock their staked $PROS into the vault to earn incentives tied to the market performance of specific enterprise partners. This allows $PROS holders to simultaneously capture on-chain staking rewards and returns generated by RWA projects, moving beyond a single source of staking yield.
“Faroo proves that real-world assets and on-chain staking can be deeply integrated at the same protocol layer,” said Wish Wu, Co-founder and CEO of Pharos. “This significantly expands the utility of $PROS and provides reusable liquidity infrastructure for the entire RealFi ecosystem.”
Blueprint for Future Incubations
As the first project to graduate from the Pharos Incubator, Faroo's launch showcases the full breadth of Pharos's capabilities—from foundational blockchain infrastructure to a thriving application ecosystem. Beyond capital, the incubator provides portfolio teams with access to Pharos's institutional-grade infrastructure, RealFi Alliance partners, and global compliance and finance network, supporting projects through every stage from R&D to go-to-market.
The Pharos Incubator remains open to developers and RealFi innovators worldwide. Using Faroo as a benchmark, the program aims to accelerate the development of next-generation real-yield asset infrastructure and bring compliant, scalable, and programmable on-chain finance into the mainstream.
For investors tracking developments in the crypto and blockchain space, the integration of real-world assets with DeFi continues to gain traction. Meanwhile, market dynamics in other sectors remain volatile—see our analysis of Western Digital Stock Up 264% in 2026, but Valuation and Technical Risks Mount for a contrasting perspective.
This article is for informational purposes only and does not constitute financial advice.
