About RWALayer
RWALayer is a blockchain network that enables dual yield. The goal of RWALayer is combining the yield from decentralized & real world markets.
RWALayer activates and auto rebases yield opportunities from on-chain native staking, precious metals, real estate, corporate & government bonds, carbon credits and private credit markets.
RWALayer is built with a single mission: automated, diversified, verifiable RWA yield made accessible to on-chain users. In order to achieve this mission, RWALayer builds Layer-2 for RWA economy, secured by restaking. In addition, RWALayer creates supplementary applications and software development kits for developers to build native products.
All bridged assets are stored on licensed web3 custodians and subject to available auto rebasing dual yield opportunities.
Mission & Purpose
The main reason for creating a Layer-2 network for dual yield is due to the opportunity costs associated with idle token holdings. It is evident that the majority of crypto natives do not exercise their right to access on-chain yield opportunities.
RWALayer simplifies the access to various opportunities: ETH native staking via Lido, T-Bill yield via MakerDAO, USDC, BNB & CAKE via native staking, bonds via Ondo, precious metals via Tether Gold. These opportunities are accessible by bridging assets to RWALayer. The yield from these opportunities is auto rebasing: this means that users do not need to complete additional steps after bridging in order to activate the on-chain yield opportunities.
On-chain users experience further opportunity cost by foregoing RWA opportunities due to the constraints of capital movement between web3 and real world finance. RWALayer provides access to regulated RWA products (sourcing yield from global real estate, commodities, private credit, etc.) that are auto rebasing yield directly to the user.
RWA Market Drivers
2024 is the first time in history where building a blockchain for decentralized & traditional yield is possible.
- Regulatory Clarity
The regulatory and compliance procedures for Real World Asset (RWA) protocols have been approved and used by various RWA protocols.
- Technological Circumstances
With the ETH Shanghai Upgrade and wider trust in auto rebasing, there is an untapped avenue to lockup idle assets for yield generation.
- Security Infrastructure
Major digital asset custodians are sufficiently advanced in their offerings to support a blockchain use case for yield.
- Awareness
The general public is increasingly aware of the DeFi asset class to support a $10bn addressable market.
- Onchain Capital Surge
Over $100bn in stablecoins from retail and institutional holders sit idle and incur opportunity cost without T-Bill exposure, while losing value to inflation. Blockchain with auto rebasing addresses it.
Business & Incentives Design
Dual Revenue Network
Blockchain network business models have relied on gas fees to date. While this is a powerful sink for tokens, it tends to create a poor incentive structure between holders and users.
RWALayer reinvents blockchain business models by focusing on the use of restaked assets.
Assets on RWALayer are bridged over; the underlying assets in the bridge earn yield. RWALayer charges a fee on the underlying yield. Users earn their staking yield, plus yield from the wrapped token being usable across RWALayer’s applications.
Affiliate Blocks
RWALayer is innovating provable incentives in order to optimize for user growth.
RWALayer is the first network to reward users for bringing new users to the chain. Most blockchains to date benefit miners or stakers.
RWALayer offers an industry-changing model: block fees and restake protocol fees are used to reward users that bring new active wallets to the chain.
Developer Incentives
RWALayer provides free DeFi primitives so developer adoption and user experience remains the easiest in the industry.
DeFi primitives, including a DEX and lending market, are built by the foundation with no native protocol fees.
This ensures the network remains true to its focus of driving yield for users rather than extracting fees.
RWALayer Dual Yield
It is important to understand how the auto rebasing yield is generated for the bridged assets. Assets are bridged from Ethereum to RWALayer network. Bridged assets may generate yield in two ways:
- Auto rebasing: from L1 ETH native staking via Lido, T-bill yield from MakerDAO, BNB & CAKE via native staking, other exposure via APIs routing purchases Tether Gold, Ondo and other upcoming opportunities.
- RWA (users need to choose their preferred on-chain RWA protocols in order to access it): from RWALayer ecosystem protocols covering property, commodities, private credit and future external developments via our SDK
There are some important considerations aimed at reducing frictions and costs.
- Auto rebasing yield is credited on-chain every 7 days
- After bridging USDT, users receive RWALayer’s native stablecoin XUSD, that auto rebases yield from MakerDAO’s on-chain Treasury Bill protocol.
- Users can bridge their assets back to Ethereum anytime. XUSD can be redeemed for DAI when bridging back to Ethereum.
- Users can monitor their dual yield progress within RWALayer App: yield.rwalayer.com