Xend Finance’s RWA: Understanding the Token
Now that Xend Finance is expanding to become a bridge between TradFi and DeFi, our goal is to allow projects to build upon the Xend Finance Layer 1, putting unique investment opportunities on the chain and increasing accessibility. On that note, we have rebranded our native token from XEND to RWA, with a maximum supply of 200 million tokens. RWA will play a key role in both payments and governance, along with broader functionalities within the Xend Finance ecosystem.
XEND to RWA migration
The XEND to RWA rebranding aligns us with the dynamic crypto space, showing our commitment to bridging the real world and the decentralized, digital world with real-world asset tokenization, the very vision for the Xend V2 business model.
The RWA token is natively available on the Arbitrum One chain, along with Ethereum, Binance Smart Chain, and Polygon. The XEND to RWA migration is currently live on our website!
Onchain Assets Environment and RWA
The Onchain Assets Environment (OAE) framework is a core part of the Xend V2 roadmap, as is the Asset Chain, both allowing the seamless on-chain onboarding of all legally transactable asset types, ensuring verification and secure management. The tokenized economy of the OAE is in turn fueled by the RWA token.
RWA is expected to encourage participation and value creation within the Xend Finance ecosystem. Here are the primary RWA utilities:
RWA utilities within the Xend Finance ecosystem
- RWA is used as transaction fees for the Asset Chain and Xend Connect (part of the OAE, brings a dedicated environment for cross-chain connectivity and data oracles) transactions.
- RWA is used to facilitate staking. There are 2 staking vaults that the Xend Finance ecosystem offers, with 4 RWA staking options available.
a. The Staking Vault offers standard staking and RWA lockups for rewards. RWA standard staking involves moving one’s RWA tokens into a specialized vault, so they can start aggregating staking scores. On the other hand, RWA lockups allow one to lock up their RWA for anywhere between 1 and 12 months, and upon initiating a lockup, participants immediately receive a staking score equivalent to their lockup period.
b. The PoS Staking Vault is geared towards validators, allowing PoS staking and PoS lockups. While the standard staking of RWA has no minimum threshold, for PoS staking one must deposit the predefined minimum PoS threshold or its multiplier.
- RWA is used to measure user engagement, dividing them up into levels based on the metric and assigning benefits. RWA staking can produce a staking score for users, a factor that gives an accurate idea of user engagement. Notably, the RWA staking score is a dynamic metric and is calculated from the average amount a user has staked over the last 12 months. While users can increase their stake at any time, withdrawals would reset their score and they have to start at zero again.
- RWA staking score is also used to gauge reputation scores, powering the relation building mechanics as part of the OAE. Users staking a higher number of RWA units would have higher reputation scores too. Naturally, users would pick service providers/partners with higher scores on this front.
- RWA is used to incentivize OAE users and promotes certain user activities by acting as a reward mechanism.
- RWA can act as an optional means of payment for different types of transactions and operations within the OAE framework, such as:
a. Origin studio subscription fees
b. Fees for certain origin studio features
c. Marketplace transactions if the seller allows it
d. Using different Xend Solutions
- The IAC mechanism is a core part of the OAE framework. The acronym stands for Insurance, Authenticators, and Compliance Validators, nodes that ensure all assets being onboarded have a quantifiable and verifiable credibility score. Those who wish to provide IAC services must reach a certain user level, again achieved through RWA staking scores.
- Similarly, activating provider accounts on OAE Social Hub will need users to reach a certain level, albeit lesser than that for providing IAC services.
So far, the RWA token is essentially involved in all aspects of Xend Finance’s operations when it comes to onboarding assets and verifying/managing them. To learn more as we expand RWA’s use cases, visit our website!
