Realio Network

Sep 3, 2020

5 min read

Multi-Chain Assets

DeFi and Cross-Chain Interoperability for Realio Assets

UPCOMING BETA RELEASE: Cross-chain bridge to convert RIO to an Algorand ASA or ERC-20 for use on dapps built on the Ethereum Network (ie. Uniswap, Idex, etc..).

Introducing Multi-Chain Assets (MCAs)

The Realio Issuance Network is a layer 2 solution for the tokenization of assets. Asset tokens created on the platform can be hosted on a number of layer 1 blockchains that are connected to a single interoperable ecosystem. The key to this kind of interoperability is the use of a user-controlled, chain agnostic issuance account for each asset that provides the bridge across chains while maintaining a parallel, immutable smart tracking ledger that allows for additional compliance controls for digital securities.

This design places issuers in full control of interoperability and removes the need for 3rd party custodians or other transfer/swap services from the process. Asset holders benefit from having choice and free will to swap across chains to take advantage of the features of each.

Compliance controls such as mandatory holding periods or restrictions to accredited investors can be added to MCAs if provided by the token issuer, based on the securities regulations that their tokens are subject to. Whitelists are then populated across all supported chains.

Cross-chain tracking of ownership is not only convenient for issuers to manage cap-tables, it also addresses cross border compliance issues such as the FATF travel rule and provides greater control over AML measures, while at the same time providing asset holders with more privacy options through cross-chain obfuscation.

Our cross-chain bridge does not require custodians and/or locking or wrapping tokens in smart contracts, removing the risks of lost collateral.

RIO’s Launch as an MCA

RIO, the native utility token and currency of the Realio Network, has officially launched as the first MCA and is available on the Algorand, Stellar and Ethereum networks. Below are links to the official RIO asset on each respective blockchain’s block explorer.

RIO on Stellar: https://stellar.expert/explorer/public/asset/RIO-GBNLJIYH34UWO5YZFA3A3HD3N76R6DOI33N4JONUOHEEYZYCAYTEJ5AK

RIO on Algorand: https://algoexplorer.io/asset/2751733

RIO on Ethereum: https://etherscan.io/token/0xf21661D0D1d76d3ECb8e1B9F1c923DBfffAe4097

How does it work?

When an asset is created on the Realio Network, parallel versions of the same asset can be created on all supported layer 1 networks (ie. see RIO assets linked above and figure 1 below). The issuance account for the asset on each layer 1 chain is linked and managed through the Realio Network so that all asset minting, burning and cross-chain swapping is tracked through a single connective ledger which maintains the record of total supply and all transactions across the layer 1 networks.

The total supply of RIO, as tracked across all chains, is constantly recorded and the value is reported publicly through the API feed linked here for transparency: https://realio.fund/api/token?symbol=rio&filter=circulating

Figure 1. Note that figures below are illustrative and not meant to represent actual supply numbers across chains.

Issuance, Distribution and Reserve Accounts

Issuance and Distribution Accounts are created on each network, however each layer 1 network has a unique method of handling asset creation and distribution. See figure 2 below for an example of how this works on Stellar.

Figure 2. Example of token issuance and distribution account structure on the Stellar Network

Cross-Chain Swaps

User accounts on the Realio Network are automatically created with wallets for each layer 1 network and an interoperability bridge between them. Post issuance, cross-chain swaps become seamless. Asset holders submit a swap request to the network via the Realio wallet UI and the asset balances itself across chains.

Advantages of cross-chain swaps:

Uniswap Pairs for Realio Tokens and RIO MM Rewards

RIO-ETH UNI-V2, rUSD-ETH UNI-V2, and rUSD-RIO UNI-V2 pools will be the first Uniswap pools created, starting with RIO-ETH.

In addition to providing liquidity and earning yield as an LP on Uniswap, users will be able to stake their LP tokens directly on the Realio platform to participate in market maker rewards earned in RIO tokens. LP token staking on Realio is built on a fork of the Masterchef contract used on SushiSwap. Unlike SushiSwap however, we do not have near term plans to migrate liquidity away from Uniswap.

Figure: LP Token Staking UI mock-up on Realio Platform

Updates to the RIO Distribution Model

The distribution of Uniswap based RIO rewards will be set at 5 RIO per block, with an additional reward of 100 RIO per block for the first 100,000 blocks. The base block reward will be reduced by one half every year.

Rewards will be minted in new RIO and distributed to the LPs pro rata.

While these DeFi based rewards represent a modification and increase to the previously communicated market maker reward distribution model, the maximum supply of RIO will remain unchanged (100,000,000), and the current node staking reward schedule will also remain unchanged.

The full updated (as of 9/1/2020) RIO token release schedule can be viewed here: [https://drive.google.com/file/d/1ttxFkFrZxDS7ae9rI6ylgcrZfK5OUTjC/view?usp=sharing]

Upcoming RIO Token Burn

Now that airdrop recipients have had ample time to complete KYC and claim their 10,000 RIO, we are ready to announce a “claim it or lose it” date, which will be before the end of the year. All unclaimed RIO will be burned from both the circulating and the total supply on that date. We expect this to be a fairly large burn.