TokenRWA

Unlock the Future of Investment with Asset Tokenisation: Connecting Real World Assets to On-Chain

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TokenRWA unlocks a new way to invest in US short term "Treasury-Bills". Our secure platform lets you own fractional shares of US T-bills on the blockchain backed by USD ensuring stable value of assets, opening doors for broader participation and potentially higher yields. Enjoy greater liquidity compared to traditional markets, and benefit from the transparency of blockchain-based ownership records. Invest smarter and explore a new era of zero-risk yield generation with TokenRWA

Inspiration

  • Witnessing the limited accessibility and lack of liquidity for investors to trade US Treasury bonds on blockchain
  • Recognising the potential of blockchain technology to democratise access to safe and stable assets like T-bills.
  • Identifying a growing demand for low-risk, yield-generating investment opportunities in the DeFi space especially for stablecoin holders

What it does

TokenRWA is a secure and innovative platform designed to revolutionise the way US Short-Term Treasury Bonds (T-bills) are accessed and managed through tokenisation on the blockchain. It simplifies the process of investing in US T-bills by creating tokenised representations of these bonds (TBILL tokens) which can be swapped with USDC stable coins, opening doors for a wider range of investors and offering safe investment products.

By leveraging TokenRWA, users can:

  • Invest in fractional T-bills: Gain exposure to T-bills with smaller investment amounts, making them more accessible to individual investors.
  • Enhanced liquidity: Easily trade tokenised T-bills on decentralised exchanges (DEXs), fostering greater market participation.
  • Crypto yielding: High-yield opportunities for stablecoin holders.​
  • Asset stability: All TBILL tokens are pegged 1:1 to USD ensuring the stability and TBILL token can be swapped with USDC stable coin.
  • Transparency and security: Benefit from a secure and immutable record of ownership and transaction history on the blockchain.
  • Streamlined experience: By eliminating intermediaries and simplifying the investment process, TokenRWA reduces the complexity and costs associated with traditional T-bill investing.

Buy & Redeem TBILL Token Process Overview

How we built it

  • Front-end technologies:

    • We utilised [React.js and Typescript.js] to build a user-friendly interface for interacting with TokenRWA. This ensures a smooth and intuitive experience for both novice and experienced investors when managing their tokenised T-bill holdings.
    • Supported wallet: Metamask

  • Back-end technologies:

  • Blockchain platform: We chose to develop TokenRWA on the Ethereum Sepolia testnet for the development, testing and deployment of our TBILL product.

  • Smart contracts:

  • The core smart contracts powering TokenRWA handle functionalities like:
  • Creating TBILL using ERC-20 standard tokens.
  • Minting and burning tokens representing fractional ownership of T-bills.
  • Minting TBILL tokens based on chainlink USDC/USD price feed.
  • Securely managing ownership and transferability of tokenised T-bills.
  • Integrating with oracles to track T-bill interest rates and automatically receive monthly interest payments in USDC to the TBILL token holders.
  • All TBILL tokens are rolled over automatically (to buy short term t-bills after maturity) to generate continuous interest for TBILL token holders.
  • Automating the redemption process of TBILL tokens to swap into USDC whenever an investors wants to exist.
  • Integrated Oracle Networks:

  • Chainlink USDC/USD API price feed: To swap USDC into TBILL tokens we are using chainlink prices feed to calculate the USDC into USD.

  • Apache/Chainlink Proof of Reserve API: To get the net asset value (NAV$) information in the off-chain custody account, to ensure transparency of the off-chain custody funds.

  • Apache/Chainlink API: To get the net asset value (NAV$) information in the off-chain custody account, before minting TBILL tokens (TBILL tokens < NAV), to make sure sufficient $ are available in the off-chain account, since TBILL is pegged 1:1 with USD.

Challenges we ran into:

Building TokenRWA presented a multitude of challenges, but through hard work and collaboration, we emerged stronger and more knowledgeable as a team. Here's a closer look at some of the hurdles we faced:

  • Limited Domain Knowledge: At the outset, our team's understanding of the intricacies of T-bill markets and the domain landscape surrounding tokenised securities (STOs) was not as comprehensive as it is today.

    • How We Tackled It: We actively sought knowledge through in-depth research, consultations with domain experts, and continuous learning throughout the development process. This ensured we grasped the nuances of T-bill investing and DeFi concepts to navigate the project effectively.

  • Technical Hurdles: Mastering the technical complexities of blockchain development, particularly in the context of tokenisation and smart contract security, demanded a steep learning curve.

    • How We Overcame It: We embraced continuous learning, delving into blockchain development resources, collaborating with experienced developers, and understanding the methodologies. This approach allowed us to build a secure and robust TBILL product for TokenRWA project.

  • Geographical Dispersion: Working across different time zones presented logistical challenges for communication and collaboration within our team.

    • Our Solution: We implemented clear communication channels, established regular team meetings that accommodated diverse time zones, and utilised collaboration tools effectively. This fostered a strong sense of teamwork despite the geographical distance.

Accomplishments that we're proud of

Despite the complex domain knowledge and technical challenges involved in tokenising US T-bills on the blockchain, we're thrilled to share some of TokenRWA's remarkable achievements:

  • Functional Prototype of TBILL product: We successfully developed a functional prototype of TokenRWA that demonstrates core functionalities like

    • Minting and burning tokens representing fractional ownership of T-bills.
    • Securely managing ownership and transferability of tokenised T-bills.
    • Deployment on Ethereum Sepolia Testnet: We successfully deployed TokenRWA TBILL product on the Ethereum Sepolia testnet.

  • Deep Expertise Gained: Throughout the development process, we acquired a deep understanding of

    • DeFi market dynamics, including liquidity provision and the importance of robust smart contracts.
    • The technical nuances of tokenising RWAs, including fractional ownership mechanisms and oracle integration.
    • The evolving regulatory landscape surrounding STOs and DeFi applications involving T-bills.

What we learned

Developing TokenRWA has been a rewarding journey filled with valuable lessons. Here are some key takeaways, particularly focusing on the DeFi space and asset tokenisation:

  • DeFi Expertise:

    • Decentralised Market Dynamics: We gained a deep understanding of the unique dynamics and challenges of decentralised finance (DeFi) markets. This includes factors like liquidity provision, price oracles, and the importance of robust smart contracts for secure and transparent operations.
    • Composability and Innovation: We delved into the power of composability in DeFi, where different protocols can interact and build upon each other's functionalities. This experience highlights the potential for innovation and disruption within the DeFi landscape.

  • Asset Tokenisation Specialisation: Technical Nuances of Tokenisation: We acquired a strong grasp of the technical aspects involved in tokenising real-world assets (RWAs) like T-bills. This includes understanding different tokenisation standards, smart contract design considerations for fractional ownership and asset management, and the role of oracles in integrating with external data feeds.

  • Importance of Community Building: We discovered the critical role of fostering a strong community around TokenRWA. Educating users about DeFi and asset tokenisation, engaging in open communication, and building trust are essential for user adoption and platform success.

What's next for TokenRWA:

Building upon the success of tokenised US T-bills, TokenRWA is excited to announce our next phase: venturing into the equity tokenisation! Our goal is to empower investors with a secure and innovative way to participate in the crypto markets using USDC, a stablecoin pegged to the US dollar.

  • Here's a glimpse into what's next for TokenRWA:
  • Equity Tokenisation Platform: We're planning to develop a platform that facilitates the tokenisation of fractional shares of traditional stocks like Apple. This will allow investors to gain exposure to these equities with smaller investment amounts compared to purchasing whole shares.
  • USDC Integration: To ensure stability and minimise volatility, TokenRWA will leverage USDC as the primary settlement currency for equity token purchases. This allows investors to invest with confidence, knowing the value of their holdings is backed by a stable asset.
  • Compliance and Security: We understand the importance of operating within regulatory frameworks. TokenRWA will prioritise compliance with all relevant regulations governing security token offerings (STOs) and equity tokenisation. Additionally, rigorous security audits will be conducted to ensure the platform's integrity and protect user assets.

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