Global Asset Rail

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About

The problem it solves ****Problem Statement**** 1. **Yield Concentration**: Current stablecoins yield 3–5% by relying solely on U.S. government and agency debt, locking out institutions seeking local market exposure. Any major institution who is willing to get liquidity exposure on-chain would require to be relying directly or indirectly on US denominated assets and financial securities. 2. **FX & Fee Overhead**: Converting INR→USDT→JPY involves multiple spreads, taxation, and compliance costs, adding up to significant hidden fees. 3. **Liquidity & Counterparty Risk**: Existing rails depend on off‑ramp partners, alternative remittance system intermediaries, or deep pockets in U.S. markets, introducing opacity and trust demands. 4. **Onboarding Complexity**: Traditional cross‑border FX requires extensive knowledge, licensing, and banking relationships, limiting participation. ****Vision**** Global trade and treasury operations today rely heavily on a small set of dominant stablecoins (e.g., USDC, USDT) backed by U.S. short‑term securities. Institutions without direct trust or exposure to U.S. markets must accept inferior yields and incur multiple layers of FX and off‑ramp fees. Our protocol creates on‑demand, country‑specific stablecoins ("sINR", "sYEN", etc.) backed by over‑collateralized baskets of domestic assets corporate and sovereign bonds, equities, gold allowing participants to: - Capture domestic yields aligned to their risk appetite. - Simplify cross‑border payments by minting, transferring, burning, and re‑minting in destination currency with minimal friction. - Maintain peg integrity through over‑collateralization, dynamic fees, and an insurance vault. - Evolve into a global financial rail that could one day rival traditional fiat rails.

How it's made

Challenges we ran into 1. **Problem**: The first problem was to what shall be the unit of price while calculating the NAV of the basket of RWAs that the institutions deposit into the protocol custody and update them every UTC 00:00. **Approach**: We denominate each vault’s NAV directly in the local fiat (e.g. INR for sINR, JPY for sYEN). Every RWA’s USD price feed is updated via Chainlink Functions using the corresponding asset's off-chain price and updating it on-chain. This two-step oracle approach lets us compute and store NAV in the home-currency unit—keeping UX crystal-clear (“1 sINR = ₹1”) while leveraging existing USD-based oracles. 2. **Problem**: Dealing with different classes of assets in a single country vault / pool. Since bonds, stocks, ETFs, gold etc. are fundamentally different classes of assets within themselves, financially treating them as per their nature on-chain is a difficult one. **Approach**: We have divided assets into 3 different broad tiers depending on the nature (stable or volatile) of returns each give. - Tier 1: Government Bonds, generally are fixed income securities that generate a fixed yield till maturity. - Tier 2: Corporate Bonds, Gold: These assets are mostly stable but are slightly more volatile than government bonds. - Tier 3: Mutual Funds, Equities: These assets are highly volatile are subject to market risks. Institutions while depositing assets can select different category of assets according to their risk appetite and form their liquidity exposure. 3. **Problem**: Recording off chain yield and dividends off bonds and equities on-chain. This is a tough problem where we faced hurdles on recording the off chain bond's coupons and stock's dividends on-chain. **Approach**: This is where the magic with Chainlink happens. We used Chainlink Functions to bridge off chain asset's yields and bring them on-chain. Our backend keeper triggers on-chain NAVOracle smart contract that is a Chainlink Functions consumer, which triggers Chainlink Functions which calls our API for off-chain yield accrual data and records them on-chain by updating each asset's yield data on the VaultManager smart contract.