🏭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

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:

  • 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.

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