Overview

ONE RWA Protocol is an RWA protocol that allows for crypto borrowing with off-chain assets as collateral.

ONE RWA Protocol is an innovative Real-World Asset (RWA) protocol that facilitates crypto borrowing using off-chain assets as collateral. Traditional RWA crypto lending protocols face significant challenges, such as the inability to liquidate or redeem assets upon default, lengthy lock-up periods, and concerns regarding the custody of pledged assets. These limitations hinder borrowers seeking liquidity from their primary market stocks, including pre-IPO shares, commodities, and real estate, particularly when accessing funds from conventional banks proves difficult.

ONE RWA Protocol addresses these issues by leveraging the principle of "Zero Trust". This approach enables borrowers to access liquidity by pledging their assets at a fair market value, verified by selected auditors. The protocol ensures that all loans are fully collateralized with off-chain assets and income, providing secure and efficient liquidity access.

Participants

ONE RWA protocol has 6 key roles: Lenders, Borrowers, Off-chain custodians, Money Lending institutions, Voters, and Auditors.

Lenders are participants who provide USDC to the protocol for utilization by borrowers, optimizing for yield and owning a portion of the loan agreement. They evaluate Borrower Pools and decide whether to lend directly to borrowers, thereby gaining ownership of the loan agreements and earning the interest rate.

Borrowers are participants who seek financing from local lending institutions through ONEFi by submitting proposals that facilitate matching with these institutions to process the term sheet and valuation of Real World Assets (RWA). Borrower Pools, which are smart contracts, contain the specific terms a borrower seeks for their loan, such as the interest rate, pledged assets, and repayment schedule.

Auditors are responsible for conducting due diligence on projects that have successfully passed a vote from the $OFi community. Once 70% of the auditors approve a deal, it is listed as a Borrower Pool. The auditor team, consisting of seven members nominated and selected quarterly by the $OFi community, provides a human-level check to guard against fraudulent activity and earns rewards in exchange for their work. Auditors will be rewarded $OFi Token as an incentive.

Off-chain custodians are globally recognized legal law firms appointed by ONEFi to manage and safeguard off-chain assets. Their primary responsibilities include acting as custodians for these assets, overseeing the loan-to-own redemption process, liquidating Real World Assets (RWA) when necessary, and ensuring that proceeds are repaid to RWA Token owners. These custodians provide a critical layer of legal oversight and security, ensuring that the assets are managed in compliance with regulatory standards and that the interests of token owners are protected.

Money Lending Institutions are licensed money lenders operating within each respective country. They are responsible for issuing the term sheet and negotiating the initial terms of the loan offering based on current market conditions. These institutions play a crucial role in setting the foundational terms and conditions for the loans facilitated through the ONEFi platform.

Voters are members of the $OFi community who evaluate borrowing proposals uploaded by Money Lending Institutions once a term sheet is issued. The voting period lasts 72 hours, during which voters can either support or decline the borrowing proposals. If a proposal receives over 50% support from the voters, it is passed on to the auditors to begin the due diligence process.

How ONE RWA Protocol works

  1. Proposal Submission:

    • Borrowers propose deal terms on ONEFi.

  2. Term Sheet Provision:

    • Money Lending Institutions contact the borrowers and provide a term sheet within 72 hours.

  3. Term Sheet Confirmation:

    • After negotiation, the term sheet is confirmed.

  4. Custodian Agreement:

    • Off-chain custodians and legal law firms establish the custodian agreement for the Real World Assets (RWA).

  5. Community Voting:

    • Borrower deals are listed for voting by the $OFi community.

  6. Voting Period:

    • Voters have 72 hours to vote on projects they are interested in funding.

    • If a project receives over 50% support in terms of the fund size, it moves forward.

  7. Due Diligence:

    • Approved projects are passed to auditors.

    • Auditors have 168 hours to conduct due diligence.

  8. Project Listing:

    • If the project passes due diligence, it is listed for another 168 hours.

  9. Funding Period:

    • Qualified lenders can send USDC to the Borrower Pools.

    • If the pool is filled before the deadline, it closes early.

  10. Fund Distribution:

    • A smart contract is executed to distribute the funds to the legal law firm.

    • The custodian holds the pledged assets and distributes the funds accordingly.

In this way, the protocol provides the utility of crypto—specifically, its global access to capital—while leaving the actual end-borrower loan origination and servicing to the businesses best equipped to handle that in their own communities.

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