FAQ

Is Vadium just an RWA lending market?

No. Cash financing is one half of the design. Vadium also creates a market for borrowing actual RWA inventory against cash collateral.

Why would someone borrow an RWA?

To hedge, take short exposure, arbitrage price differences, support market making or satisfy temporary delivery needs without permanently purchasing the asset.

Where does the cash come from?

From stablecoin suppliers that fund the cash-financing vault.

Where does the RWA inventory come from?

From RWA suppliers or separately financed inventory facilities. Borrower cash collateral is not assumed to create the inventory.

Can users always borrow 24/7?

Not necessarily. The chain can remain live while new borrowing or collateral withdrawals are restricted when price or execution conditions are unreliable.

What happens if an RWA price falls sharply?

A cash-financing position can become eligible for liquidation. The protocol sells collateral through approved execution routes to repay stablecoin debt.

What happens if a borrowed RWA rises sharply?

An RWA-borrowing position can become unsafe. The protocol can use posted cash collateral to buy the RWA back and return it to the inventory vault.

Does Vadium create a stablecoin?

No. The proposed MVP uses an existing stablecoin rather than issuing a protocol-native dollar.

Is the protocol live?

No. The current documentation describes a proposed protocol and first-market design. Parameters and implementation choices remain subject to change.