🏦 Vaults & Token Economics

RWAlpha vaults form the core of the protocol. Each vault is a non-custodial smart contract that manages a diversified portfolio of tokenized real-world assets.

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:

• Vault asset composition

• Historical yield performance

• Off-chain RWA Yeilds

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.