Skip to main content

Cash against RWAs

FLOW A — Deposit an RWA. Borrow cash.

A borrower deposits an eligible tokenized RWA into an isolated collateral account. Stablecoin liquidity is supplied by a separate funding vault. The borrower receives stablecoin debt while maintaining economic exposure to the deposited RWA.

  1. Deposit an eligible RWA.
  2. The protocol verifies the canonical asset, oracle state and market state.
  3. Borrow stablecoins up to the market's permitted risk limits.
  4. Interest accrues on the stablecoin debt.
  5. Repay debt to withdraw collateral.
  6. If the account becomes unsafe, collateral can be sold through approved execution routes to repay the stablecoin debt.
Health_A = (RWA amount × RWA price × collateral factor) / stablecoin debt

Conceptual formula. Market-specific parameters are not final.

A position is healthy while its risk-adjusted collateral exceeds its debt requirement.

Why use cash financing?​

  • Access liquidity without selling the RWA.
  • Maintain exposure to the asset while using borrowed cash elsewhere.
  • Support treasury, hedging or structured strategies as the protocol expands.