Upon launch, USDR Stablecoin will be available to be minted in a decentralized process.

The creation of Real USD (USDR) within the RWAX Protocol framework is facilitated through two distinct pathways, each tailored to different user preferences and asset ownership scenarios.

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Direct Minting with Real-World Assets (RWAs)

Procedure

  • Asset Submission: Individuals can mint USDR by contributing eligible Real-World Assets directly into the protocol. These assets are typically short-term, high-quality securities like U.S. Treasury Bills.

  • Equivalence Minting: The protocol mints USDR on a 1:1 basis with the deposited RWAs. For every dollar of RWA value deposited, one USDR token is generated.

Points to Consider

  • The RWAs must comply with the protocol’s strict collateral standards for quality and liquidity.
  • This method offers a transparent process where the assets backing the USDR are directly from the user.

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Indirect Minting via USDC

Procedure

  • USDC Transfer: Users deposit USDC into the RWAX system, which in turn mints USDR at an equivalent rate.

  • Collateral Provider Involvement: A trusted Collateral Provider (CP) steps in to supply the necessary RWAs to support the newly minted USDR, allowing users to benefit from RWA backing without direct ownership.

Key Considerations

  • CP Validation: Before any indirect minting, the protocol ensures that the CP has adequate and appropriate RWAs.
  • Associated Costs: Users should be aware that there could be additional costs for this convenience, reflecting the fees for the CP’s service.

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Initial Minting Policy

Minimum Threshold: During the early stages post-launch, requests for minting USDR below a certain threshold (e.g., 100,000 USDR) will be directed to engage with secondary market liquidity. This policy helps manage the initial scale of minting activities and maintain ecosystem balance.