RWA Risk
Ledgity’s yield is primarily generated through Real-World Assets (RWA) managed by the SARR Fund, a regulated investment vehicle. The objective is to produce stable, recurring cash-flow–based returns while minimizing capital and liquidity risk.
The strategy is built on short-duration, high-transparency credit exposure, without leverage or speculative instruments.
Asset Selection
The RWA portfolio only includes assets that meet the following criteria:
Short maturity and predictable repayment schedules
Clear and auditable cash flows
Verified and financially credible counterparties
Senior or secured position in the capital stack
Fully traceable through regulated intermediaries
If an asset category introduces long-term lockups, mark-to-market uncertainty, or opaque valuation, it is excluded.
Explicitly Excluded RWA Categories
To avoid liquidity mismatch and valuation risk, Ledgity does not invest in:
Real estate development or renovation loans
Long-duration bonds with multi-year duration
Structured or tranche-layered credit products
Synthetic or derivative-based yield
Any collateral dependent on speculative market conditions
This approach eliminates the failure patterns observed in many RWA protocols (frozen redemptions, repayment gaps, pricing opacity).
Portfolio Construction
Diversified across multiple issuers
Short-duration repayment cycles to support ongoing withdrawals
No leverage and no rehypothecation
Yield is generated by contractual repayment, not token incentives
The priority is capital stability, not maximizing APY.
Counterparty Monitoring
Each portfolio exposure undergoes:
Business and financial due diligence
Creditworthiness and repayment analysis
Legal enforceability review
Continuous monitoring during the entire lending period
Risk scoring is updated as cash flows occur, not only at onboarding.
Liquidity Alignment
The RWA portfolio is structured to align repayment frequency with on-chain withdrawal expectations. Short-duration cycles ensure capital continuously returns to the vaults.
This prevents the liquidity mismatch that occurs when long-term assets are used in products with daily withdrawals.
Reporting & Transparency
The SARR Fund provides periodic reporting and reconciliation, allowing the protocol to align:
RWA yield performance
Vault PPS (Price-Per-Share) growth
Liquidity planning for withdrawals
Yield observed on-chain is directly supported by real, documented economic activity.
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