SRWA is a platform built on Radix to facilitate lending and borrowing with real-world assets serving as collateral, analogous to houses in mortgages or gold in traditional financing. SRWA promises enhanced security and user experience, prerequisites for extensive adoption.
Runs on Radix Q&A: SRWA
Main article: Ploughshare
SRWA.io will permit users to deposit selected tokens (e.g., $XRD, $MOO) and earn interest. Simultaneously, they can borrow these tokens against a specified interest. The accrued interest is split between the Ploughshare project and depositors at a predefined rate. Both lenders and borrowers will be incentivized by the $MOO token distribution. The team aims to incorporate NFT capability for representing real-world assets in future updates.
The present design envisions a two-fold ecosystem with Ploughshare and SRWA. While Ploughshare is poised to evolve into a DAO (Decentralized Autonomous Organization), SRWA contributes as the technological team. Anticipated partnerships encompass Liquidity Providers, DEX, CEX, Asset Originators, Auditors, Oracles, Stablecoin Protocols, Identity & KYC, Fiat on/off-ramp, Bridges, and Multisig solutions.
Central to SRWA's value proposition is the tokenization of RWAs, enabling users to collateralize assets like farms or machinery. This is facilitated via a Special Purpose Vehicle (SPV) created to register and tokenize such assets. Subsequently, an NFT representing the asset is generated, and its owner can then demonstrate their collateral on the chain.
The ultimate objective is to transition all decision-making to decentralized governance. While the specifics remain under discussion, an initial Treasury, earmarked for DAO operations, will be established coinciding with the token launch.
SRWA's initial capital, denominated in XRD, is earmarked for future staking to fortify the entire Radix network. While building Validating nodes and Gateway API may not be central to Ploughshare's mission, SRWA envisions developing and operating a dedicated Full Node as a learning exercise.
The inspiration for SRWA came from the Radix Scrypto DeFi Challenge. The SRWA team engaged in an in-depth exploration of DeFi lending protocols, resulting in a Compound-like lending mechanism. This system permits assets to function as a lending pool for borrowers and as collateral. Their demo, which can be tested with a resim simulator, mirrors this.
Nicola, one of the co-founders, embarked on his journey into the blockchain world around 2016-2017. Initially drawn to the potential of blockchain not just for native assets like Bitcoin and Ethereum, Nicola's vision extended to applying the technology to real-world assets. Early experiments involved assets such as gold. As the project idea matured over time, the team identified inefficiencies in traditional financial systems. They were particularly struck by the disparity in time taken to raise credit traditionally, citing an experience where it took them four and a half months for a credit line, versus an hour and a half using blockchain technology.
The SRWA project boasts a diverse and experienced team. Key members include: