Vaults
RWAlpha vaults form the core of the protocol. Each vault is a non-custodial smart contract that manages a diversified portfolio of yield-bearing, tokenized real-world assets. Designed for transparency
What Is an RWAlpha Vault?
An RWAlpha vault is an autonomous, audited smart contract that performs the following functions:
Issues vault receipt tokens in exchange for USDC deposits
Allocates capital across a curated basket of tokenized RWAs
Accrues yield based on the performance of these underlying assets
Allows redemptions of vault tokens for their proportional underlying value
All vault operations occur fully on-chain. RWAlpha never takes custody of user funds—users always maintain ownership of both their assets and vault tokens.
Understanding APY in RWAlpha Vaults
Every RWAlpha vault displays an Estimated APY, which represents a forward-looking projection derived from:
The vault’s asset mix
Historical performance data
Off-chain yield from real-world assets
This estimate serves as a reference point—not a guarantee—and may adjust over time as market conditions change.
Early-Stage Yield Dynamics
When a vault is newly launched, returns may fluctuate as:
New capital enters
Allocations rebalance
Initial positions are established
Off-chain assets begin generating yield
During this period, short-term yields may differ from long-term expectations.
Current APY for Transparency
To complement the Estimated APY, RWAlpha also tracks a Current APY, calculated from the actual on-chain yield earned over the past 7 days. This metric offers a real-time view into recent performance and is available for users who want deeper insight.
Smart Contract Architecture
RWAlpha vaults are built using the ERC-4626 standard with open zepplin framework—a lightweight, open-source standard that prioritizes:
Security: battle-tested implementations trusted across DeFi
Composability: seamless integration with DMZ.finance and other protocols
Transparency: all asset positions, flows, and performance data are visible on-chain
Vault tokens follow the ERC-4626 standard, ensuring effortless use across wallets, DEXs, lending markets, and third-party integrations.
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