Platform Overview
The RWA Vault System is a comprehensive coordination mechanism that transforms illiquid luxury assets into liquid, tradeable tokens with multiple yield strategies.
Mission Statement
"A healthy vault continuously expands liquidity by acquiring physical assets, maintaining fair pricing, and providing sustainable yield through multiple strategies."
Success Criteria
Our platform is designed around five core success metrics:
- ✅ Ever-expanding collateral - More physical assets entering custody
- ✅ Deep liquidity - Low slippage for fractional buyers
- ✅ Sustainable yield - Multiple revenue streams feeding vault APR
- ✅ Fair pricing - Professional market maker with challenge mechanisms
- ✅ Low friction - Less than 5% total fees vs 20%+ competitors
System Architecture
The platform operates in four integrated layers:
1. Custody & Tokenization Layer
Convert illiquid physical assets into fungible on-chain tokens. Luxury vehicles are authenticated, appraised, and stored with trusted custody partners, while fungible tokens are minted representing fractional ownership.
Key Feature: Original owners retain a call option to retrieve their specific vehicle if they maintain minimum token holdings.
2. Spot Market Layer (AMM)
Enable fractional trading of tokenized assets with professional market making. Users can buy and sell fractions of luxury cars with low fees and deep liquidity.
Trading Pairs: Multiple RWA_TOKEN/USDC pairs with concentrated liquidity pools.
3. Vault Staking Layer
Two vault strategies for different risk profiles:
- Conservative Vault: Focus on spot trading fees and lending yield
- Aggressive Vault: Add perp trading exposure for higher returns
Dynamic APR: Automatically adjusts based on vault performance and market conditions.
4. Perpetual Futures Layer
Leverage trading on luxury asset prices without holding the underlying tokens. This is our MVP focus as perp volume typically exceeds spot trading by 10-50x.
Use Cases:
- Dealers hedge inventory risk
- Traders speculate on price movements
- Arbitrageurs capture funding rate opportunities
Revenue Streams
The protocol generates revenue through multiple channels:
- Spot Trading Fees - 0.3% per swap
- Perp Trading Fees - 0.05-0.1% per trade
- Funding Rates - Longs pay shorts (or vice versa) hourly
- Lending Interest - Borrow fees on token collateral
- Custody Fees - Less than 1% for physical asset storage
Key Differentiators
| Feature | RWA Platform | Traditional Dealers |
|---|---|---|
| Total Fees | 5% | 20-27% |
| Minimum Investment | $1 | $500,000+ |
| Liquidity | 24/7 on-chain | Business hours only |
| Settlement | Instant | Days/weeks |
| Hedging Tools | Perp contracts | None |
| Transparency | Full on-chain | Opaque pricing |
Target Market
Phase 1: Luxury Collectible Assets
- Primary Category: Vintage and exotic collector vehicles
- Market Size: $50B+ global collector asset market
- Price Range: $500K - $70M+ per asset
- Target Custody: 10-20 high-value assets initially
- Estimated Annual Volume: $100-250M
Future Expansion Categories
- Fine art and rare collectibles
- Investment-grade jewelry
- Luxury real estate fractionalization
- Alternative investment assets
Next Steps
Learn about our products:
- RWA Tokens - Fractional ownership
- Vault Staking - Earn yield
- Perpetual Futures - Leverage trading