Liquidity Pools for Tokenized RWAs

• Users can supply capital into dedicated lending pools and earn yield (interest fees) on their deposits.

• These pools will support both fungible tokens (e.g., tokenized funds, equities, or bonds) and non-fungible tokens (NFTs) representing real estate or other assets.

• Borrowers can deposit tokenized RWAs (e.g., real estate NFTs, tokenized commodities) as collateral to borrow capital.

• Loans will be over-collateralized to manage risk, ensuring that borrowers must maintain a minimum collateralization ratio (e.g., 125%-150%, depending on the asset class).

• Collateral will be liquidated automatically if its value drops below a set threshold, protecting lenders.

Interest rates are algorithmically adjusted using a utilization-based model:

• If a lending pool is heavily utilized, borrowing rates increase to incentivize more liquidity provision.

• If utilization is low, borrowing becomes cheaper to stimulate activity.

Liquidity Providers:

• Deposit stablecoins (e.g., USDC, USDT) or other supported assets into RWA lending pools.

• Earn a proportional share of the interest paid by borrowers.

Borrowers:

• Deposit tokenized RWAs (e.g., an NFT representing real estate worth $100,000).

• Borrow up to a specified percentage of its value (e.g., 70%, or $70,000) in stablecoins or other supported assets.

• Maintain the required collateral ratio to avoid liquidation.

Example Use Case:

• Alice owns a fractional NFT representing $100,000 worth of real estate.

• She deposits this NFT as collateral and borrows $70,000 in USDC.

• Alice reinvests the borrowed funds into other INVAST products, such as real estate-backed pools on the INVAST DEX or fractional real estate, to generate additional yield.

Depositors will earn returns generated through borrowing fees and real-world yields from the collateralized assets (e.g., rental income from tokenized real estate).

Pools will support diverse RWAs:

• Real Estate Tokens: Representing fractional ownership of properties.

• Tokenized Funds or Bonds: Representing equity or fixed-income assets.

• NFTs: Representing unique high-value assets, such as real estate deeds or artwork.

Our platform is built with robust liquidation mechanisms to ensure lenders are fully protected. If the value of collateral drops below the required threshold, an automatic liquidation process will be triggered to safeguard borrowed funds.

Collateral will be promptly sold to recover the borrowed amount. Additionally, we have a contingency plan in place: collateral can be leveraged within other trusted protocols to secure further funds, allowing us to extend recovery time and maximize asset recovery.

We also encourage market participation through liquidation auctions, ensuring a competitive, healthy marketplace that supports liquidity and stability for all users.