RWAOne Protocol

RWAOne is more than just a protocol—it’s a gateway to the future of finance. By paving the way for how real-world assets are traded and managed in the DeFi space, we aim to drive increased accessibility, liquidity, and transparency.

Synthetic RWAs serve as the cornerstone of its mission to bridge traditional finance and DeFi. By creating over-collateralized synthetic versions of assets like forex, commodities, stock and indices , RWAOne allows users to interact with these markets on-chain. This not only democratizes access but also integrates the stability and diversity of real-world assets into the fast-paced, innovative world of decentralized finance.

RWAOne’s process for creating synthetic RWAs involves two key steps:

1. Minting rUSD with USDC Collateral:

   • Users lock up USDC (a stablecoin pegged to the U.S. dollar) as collateral in a smart contract.

   • This collateral is "over-collateralized," meaning its value exceeds the amount of rUSD—the protocol’s synthetic stablecoin—they can mint. For example, a user might lock $150 USDC to mint $100 rUSD, providing a safety buffer.

   • The over-collateralization ensures stability, protecting the system against price volatility in the broader crypto market.

2. Minting Synthetic RWAs with rUSD:

   • Users then use their minted rUSD to create synthetic RWAs, such as a synthetic gold or a forex pair (e.g., USD/EUR).

   • The value of these synthetic RWAs is tied to real-world asset prices via external price oracles (Pyth in this case), which provide real-time data to keep the synthetic assets accurately pegged.

   • Smart contracts manage the entire process—minting, tracking, and redemption—ensuring it’s trustless and transparent.

For instance, a user could lock USDC, mint rUSD, and then use that rUSD to mint a synthetic RWA representing oil. They don’t own physical oil; instead, they hold a token that tracks oil’s market price, tradable within the DeFi ecosystem.

Benefits of Synthetic RWAs in RWAOne

• Accessibility: Users can gain exposure to diverse markets (forex, commodities, indices) using just USDC, bypassing traditional gatekeepers like banks or brokers.

• Liquidity: Synthetic RWAs can be traded or used in DeFi protocols 24/7, unlocking opportunities unavailable in traditional finance.

• Yield Opportunities: rUSD and synthetic RWAs can be leveraged for staking, lending, or other income-generating strategies within RWAOne.

• Security: Over-collateralization and blockchain transparency reduce risks and build trust.