🏭Reason why

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 limited source of financing,

• a high cost of entering into relationships with customers.

Expending supply

In the decentralized environment where money (stablecoin) and crypto-asset-focused markets (DEX and loans) already exist, Radao is participate to add real-world assets tokens compatible with DeFi existing ecosystem.

Radao versus TradFi main services around securities assets

What	TradFi	Radao
Clearing and settling payments	carried out by financial institutions like payment systems, deposit accounts, e-money, cards, central counterparties (=💰 fees)	decentralized, immutable smartcontract, priced by an on-chain oracle, with transparent network and pool fees
Raising or pooling of funds	carried out by stock exchanges for stocks, bonds, mutual funds, exchange-traded funds (ETFs) for large companies and private or fundraiser for others; (= 💰 fees)	decentralized, immutable smartcontract, priced by an on-chain oracle, with transparent network and pool fees
Transfer economic resources though time and space	Loans, mortgages, pension funds, mutual funds, etc. (= 💰 fees)	decentralized, immutable smartcontract, priced by an on-chain oracle, with transparent network and pool fees
Manage uncertainty and control risk	Loans, insurance contracts, derivatives, hedging strategies (= 💰 fees)	decentralized, immutable smartcontract, priced by an on-chain oracle, with transparent network and pool fees
Provide price information to coordinate decentralised decision making	Exchanges, trading activities, derivatives (= 💰 fees)	decentralized, immutable smartcontract, priced by an on-chain oracle, with transparent network and pool fees
Deal with incentive problems	Risk management, repeated interactions with the same known counterparties (= 💰 fees)	decentralized, immutable smartcontract, priced by an on-chain oracle, with transparent network and pool fees + identified issuer address known by investors (reputation)
Crossborder	Difficult, new intermediaries and legal structures (= 💰 fees)	decentralized, immutable smartcontract, priced by an on-chain oracle, with transparent network and pool fees

based on https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4325095

Risk comparison between Radao and TradFi

What	TradFi	Radao
Clearing and settling payments to facilitate trade	systemic externalities.	no risk: clearing is instantaneous, risk: currency received as payment carries a risk (USDT, USDC, etc.)
Pooling of funds to undertake large- scale enterprises	inadequate information	risk: inadequate information, solution: information made available at the time of purchase proven on-chain
Transfer economic resources though time and space.	systemic externalities managed by contract & third parties under local regulation	risk: systemic externalities, solution: decentralized & immutable over-collateralisation on-chain
Manage uncertainty and control risk; Provide price information to coordinate decentralised decision making; Deal with incentive problems.	inadequate information	risk: inadequate information solution: smart contract allow transparent market + IPFS allow proof of information at the time of transaction

What new opportunities does Radao offer?

Investors in equities and bonds can find new backers, liquidity providers new sources of earnings

• Lower costs = easier gains:

  • limited market access costs,

  • crypto capital gains generally not taxable,

  • DeFi protocol fees much lower than centralized investment platforms (e.g. 0.01%-0.30% Uniswap pool versus shadow fees on the market where the stock is traded, local taxes likeTobin tax, brokers payment for order flow, etc.).
• New earning opportunities:

  • use securities underlying for a crypto-loan,

  • receive RAD tokens linked to usage,

  • 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

• new token assets class,

• liquidity of their Spot is completed by that of the real markets when the underlying asset is itself listed in the real world.