🏭Reason why

Why we do things.

What problem is Radao solving?

Blockchain enables exchanges without intermediaries and without the need to trust the other party. This is quite the opposite of traditional finance, which, depending on the nature of the exchange, can involve numerous intermediaries at every stage and contracts establishing duties and responsibilities without, however, guaranteeing compliance with them. Each intermediary chooses its own interpretation of the regulation through its compliance policy and will add its costs, including its margin, which is often only legitimized by its operating license.

For the investors, the penalty is threefold:

  • longer transactions,

  • more expensive,

  • more costly in administrative effort.

For the platforms:

  • a long and costly need for regulation,

  • a permanent operating risk,

  • a high cost of entering into relationships with customers.

Blockchain based Real world assets (RWA) are by definition borderless but regulated by local law in case of security tokens, which can have a significant impact on their liquidity, taxation and value. We can, however, classify them into global investment categories that have similar business models throughout the world, albeit in very different forms: equities, bonds (debt), money-market investments, commodities, currencies and real estate.

Bitcoin decentralized money is a significant advance, enabling everyone to hold their money without intermediaries. The opening, crediting or debiting of an account cannot be prevented by any criterion other than the state of the balance. Secure exchanges are made possible without contact or trust. Assets in circulation can only be created by an algorithm known to all.

Decentralized lending and borrowing (DeFi) is also a major advance in the regaining of control by value holders over traditional financial players (TradFi), made possible by the distributed Turing machines initiated by Ethereum. Pooling via pools (Uniswap, Aave) or peer-to-peer (Morpho) enables greater capital efficiency and better rate transparency.

Radao provides a flexible solution for equity and bond investors who want to benefit from the advances in DeFi. With self-ownership of securities backed ART tokens, a complete ecosystem needs to be rethought, in which the numerous intermediaries are replaced by applications at the service of customers, in compliance with regulations.

Radao versus TradFi main services around securities

Risk comparison between Radao and TradFi

What new opportunities does Radao offer?

Investors in equities and bonds can earn more through the Radao protocol

  • Lower costs = easier gains:

  • New earning opportunities:

    • use its securities as collateral for a loan in order to re-invest,

    • use the Radao ramp to receive RAD governance tokens,

    • and anything else the DeFi community can come up with using ART tokens...

Centralized exchanges will be able to list tokens backed by equities and bonds

  • a new asset class that is technically and legally similar to the ERC20s already listed (ETH, SOL, DOT, LINK, etc.),

  • liquidity of their Spot market fuelled by the Ramp to the real market.

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