🧰How it works
A high-level overview of how Radao operate.
Ramp
The Ramp is used by all buyers and sellers of Assert Referenced Tokens (ART) who wish to benefit from the liquidity of the real markets.
Using Radao widget interface or API, the Ramp makes it possible to buy or sell the share of the reserve in real-world assets corresponding to the ART exchanged without ever being in contact with the security tokens.
In detail, the flow is as follows for a purchase:
simulation of the amount of ART corresponding to the stablecoin investment, taking into account a number of criteria (last known best price of the asset within the network of brokers validated by the DAO, including any taxes and fees),
receiving stablecoins on the ramp wallet,
execution of the order which will depend on the opening of the real-world market,
Locker minting & delivery of ARTs corresponding to the order to the wallet that paid in stablecoin (e.g. GOOG.ART, APPL.ART, LVMH.ART),
delivery of RAD governance tokens to the specified wallet (by default the wallet that paid in stablecoin). This distribution of RAD, exclusively for the use of Ramp on, has been validated by the DAO in order to facilitate the adoption of the protocol. It is not a component of the protocol itself and may be modified in the future.
Security Locker
The locker is used by the decentralized network of real-world asset holding vehicles validated by the DAO to declare their on-chain proof of reserve in a form of locked security tokens.
These .S tokens (e.g. GOOG.S) are brought into the smart-contract Locker, which then mints a quantity of GOOG.DAO and GOOG.ART on the basis of a 1:1 parity.
A quantity equivalent to the number of GOOG.S in the transaction are minted (buy) or unminted (sell) into GOOG.DAO tokens representing the right to reward and GOOG.ART tokens representing the value of the real-world asset.
Liquid Staking
ART holders can use Liquid Staking Radao to benefit from real-world returns while remaining liquid.
DeFi protocols are generally not compatible with tokens with an evolving supply (e.g. rebasing). Lido has opened the way with an elegant solution consisting of staking the asset (ART in our case) whose supply will be impacted by the rewards and giving an stART claim token in return (e.g. stGOOG.ART).
When RWAs produce a yield it is used to buy more supply of the same underlying. This supply is converted into ART via the Security Locker then brought into the Liquid Staking Locker thus increasing the share of ART redeemable by the stARTs.
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