RWT - Real World Token

Documentation Index

Fetch the complete documentation index at: https://docs.areal.finance/llms.txt

Use this file to discover all available pages before exploring further.

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Core Idea

RWT is the primary utility token of the Areal protocol — designed to solve the fundamental problem of fragmented liquidity in the RWA market. Instead of scattering capital across dozens of isolated pools, Areal aggregates yield from multiple real-world assets into one token. RWT accumulates diversified RWA yield through Ownership Tokens held in its vault, becoming the single point of access to the protocol’s entire portfolio.

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RWT Vault

The RWT Vault is the core mechanism that backs RWT with real-world assets. The vault holds a diversified portfolio of Ownership Tokens — and acquires them from the open market using deposited capital.

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How the vault is funded

When users mint RWT, they deposit USDC or USDY into the vault. The vault then uses this capital to purchase Ownership Tokens on the market — selecting assets approved by governance. As more Ownership Tokens are accumulated, the vault’s diversification and yield potential grow — without diluting existing RWT holders.

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Flatcoin Nature — NAV Book Value

RWT is a flatcoin — its price is not pegged to $1, but anchored to a dynamically calculated NAV Book Value that grows over time as yield is accumulated. NAV Book Value is calculated as:

NAV Book Value = (Initial invested capital + Accumulated yield credited to book value) / Total RWT supply

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How NAV Book Value grows

The key growth mechanism: 70% of all yield generated by Ownership Tokens in the vault is credited toward the total invested capital. This means the numerator of the formula increases continuously, even without any new deposits — driving NAV Book Value upward. Step-by-step example: This is what makes RWT a growing flatcoin — it doesn’t just maintain its value, it steadily appreciates as real-world yield flows into the vault.

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Benefits of NAV-based pricing

Liquidity in the master pools is always concentrated around NAV Book Value, ensuring that the market price closely tracks the fair value of the underlying assets.

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Yield Distribution

Assets held in the RWT Vault generate real-world yield — rent, interest, revenue. This yield is distributed according to a fixed allocation model:

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Permissionless Minting

Anyone can mint RWT at any time — there are no whitelists, gatekeepers, or approval processes. The minting price is always equal to the current NAV Book Value, not a fixed $1 and not the market price. Minting price = current NAV Book Value + 1% fee A 1% minting fee is applied on every mint:

• 0.5% goes to the RWT Vault — directly increasing NAV Book Value for all holders
• 0.5% goes to Areal DAO — funding protocol development and operations

For example, if NAV Book Value is $1.50:

• You deposit 151.50 USDC (150 + 1% fee)
• You receive 100 RWT
• $0.75 goes to the vault (grows NAV),$0.75 goes to Areal DAO

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Master Liquidity Pools — Monotonic Ladder

RWT has two master liquidity pools on Areal’s native DEX, providing unified entry and exit liquidity: Both pools use the Monotonic Ladder — a single-sided concentrated liquidity architecture designed around three structural properties of RWT:

• NAV is monotonically non-decreasing in normal operation
• mint_rwt provides a synthetic ask-side at NAV × 1.01 — always available, unlimited depth
• Exit-side depth is the scarce resource that LP capital should actually provide

As a result, 100% of Nexus LP capital is deployed on the bid side (USDC). Ask-side liquidity is either organic (accumulated from user sell orders) or synthetic (routed to mint when the pool is non-competitive). Capital efficiency is roughly 2× a symmetric two-sided design, and LPs carry no “ask-side IL” from NAV appreciation.

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Growth and Rebalancing

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Growth rebalance (NAV rises)

When NAV growth pushes the active bin out of sync by more than 1%, the Pool Rebalancer calls grow_liquidity:

1. Extends the bid wall rightward with fresh USDC bins funded from the Nexus accumulator
2. Redistributes geometric density weights around the new NAV
3. Older bid bins below new NAV become an extended bid wall — still productive as stress buffer
4. The permanent tail (thin USDC layer at initial NAV − 1%) is never shifted
5. The organic ask-side is never touched

Over time the pool builds a cumulative, monotonically expanding bid structure — deeper at every historical price level RWT has ever traded at.

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Writedown rebalance (rare)

If governance executes adjust_capital to reduce NAV (e.g., writedown on underlying OT positions), compress_liquidity recomputes density centered on the new NAV. Bid bins previously above the new NAV merge back into the extended bid — immediately productive. Organic ask RWT above the new NAV remains as a frozen ask wall awaiting NAV recovery. The permanent tail is untouched.

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Agentic Management

Areal is designing the RWT Vault architecture with future autonomous management by AI financial agents in mind. The goal: a fully autonomous vault that maximizes yield while maintaining diversification and risk control. Agents will be responsible for:

• Accumulation strategy — deciding which Ownership Tokens to include in the vault
• Yield distribution optimization — dynamically adjusting allocation parameters
• Profit extraction timing — determining optimal moments to realize gains
• Rebalancing parameters — fine-tuning concentration ranges and rebalancing thresholds

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Summary