> ## Documentation Index
> Fetch the complete documentation index at: https://docs-staging.centuari.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# RWA Collateral

> Use tokenized real-world assets as collateral for fixed-rate borrowing

<Frame>
  <img src="https://mintlify.s3.us-west-1.amazonaws.com/centuari/assets/gifs/rwa-collateral.gif" alt="Animation showing tokenized stocks and bonds being deposited as collateral for a loan" />
</Frame>

## Overview

Centuari's RWA Collateral system allows users to borrow against tokenized real-world assets, stocks, bonds, ETFs, commodities, and more. Bridge your traditional wealth into DeFi without selling your positions.

<Info>
  **53% of surveyed users** want to use real-world assets as collateral. RWA Collateral makes this possible, unlocking billions in traditional assets for DeFi lending.
</Info>

## Why RWA Collateral?

### The Problem

Most DeFi users have significant wealth outside of crypto:

* Stock portfolios
* Bond holdings
* Real estate
* Retirement accounts

To access DeFi yields, they must:

1. Sell traditional assets (triggering taxes, losing exposure)
2. Move funds to crypto
3. Then participate in DeFi

This is friction that prevents mass adoption.

### The Solution

<CardGroup cols={2}>
  <Card title="No Selling Required" icon="hand">
    Keep your stock exposure while borrowing against it
  </Card>

  <Card title="Tax Efficiency" icon="receipt">
    Borrowing isn't a taxable event (consult your advisor)
  </Card>

  <Card title="Diversified Collateral" icon="layer-group">
    Mix crypto and RWA in your collateral basket
  </Card>

  <Card title="Traditional Security" icon="shield-halved">
    Assets held with regulated custodians
  </Card>
</CardGroup>

## Supported Asset Types

<Tabs>
  <Tab title="Equities">
    Tokenized stocks from major exchanges:

    | Asset        | Token  | Issuer       |
    | ------------ | ------ | ------------ |
    | Apple Inc.   | AAPL.t | Backed Asset |
    | Tesla Inc.   | TSLA.t | Backed Asset |
    | S\&P 500 ETF | SPY.t  | Backed Asset |
    | Nasdaq ETF   | QQQ.t  | Backed Asset |

    **LTV Range**: 60-70%
  </Tab>

  <Tab title="Fixed Income">
    Tokenized bonds and treasuries:

    | Asset             | Token   | Issuer       |
    | ----------------- | ------- | ------------ |
    | US Treasury Bills | TBILL.t | Ondo Finance |
    | Treasury ETF      | TLT.t   | Backed Asset |
    | Corporate Bonds   | CORP.t  | Various      |

    **LTV Range**: 75-85%
  </Tab>

  <Tab title="Commodities">
    Tokenized commodity exposure:

    | Asset    | Token | Issuer       |
    | -------- | ----- | ------------ |
    | Gold     | PAXG  | Paxos        |
    | Gold ETF | GLD.t | Backed Asset |
    | Silver   | XSLV  | Various      |

    **LTV Range**: 65-75%
  </Tab>

  <Tab title="Coming Soon">
    Future collateral types:

    | Asset Type         | Status  |
    | ------------------ | ------- |
    | Real Estate Tokens | Q3 2025 |
    | Private Credit     | Q4 2025 |
    | Collectibles       | 2026    |
  </Tab>
</Tabs>

## How It Works

<Steps>
  <Step title="Own Tokenized Assets">
    Hold supported RWA tokens in your wallet (purchased from issuers like Backed, Ondo, etc.)
  </Step>

  <Step title="Deposit as Collateral">
    Deposit RWA tokens into Centuari's collateral manager
  </Step>

  <Step title="Borrow Stablecoins">
    Borrow USDC/USDT at fixed rates against your RWA collateral
  </Step>

  <Step title="Maintain Position">
    Monitor health factor; add collateral if needed
  </Step>

  <Step title="Repay & Withdraw">
    Repay loan to unlock your RWA tokens
  </Step>
</Steps>

## Example: Borrowing Against Stocks

**Scenario**: You hold \$100,000 in AAPL.t (tokenized Apple stock) and need liquidity.

```
Collateral Deposit:
  Asset: AAPL.t
  Value: $100,000
  LTV: 65%

Maximum Borrow: $65,000 USDC

You Borrow: $50,000 USDC at 7.5% APY for 90 days
  Health Factor: 2.0 (healthy)
  Fixed Interest: ~$925

At Maturity:
  Repay: $50,925
  Receive: $100,000 AAPL.t back
  Net: Kept Apple exposure, paid ~$925 for 90-day liquidity
```

## Risk Parameters

### LTV by Asset Class

| Asset Class            | Max LTV | Reasoning                          |
| ---------------------- | ------- | ---------------------------------- |
| US Treasuries          | 85%     | Lowest volatility, highest quality |
| Investment Grade Bonds | 75%     | Low volatility, high quality       |
| Gold                   | 70%     | Moderate volatility, safe haven    |
| Blue Chip Stocks       | 65%     | Higher volatility, high liquidity  |
| Growth Stocks          | 60%     | High volatility                    |
| ETFs                   | 60-70%  | Depends on underlying              |

### Liquidation Thresholds

| Asset Class            | Liquidation Threshold |
| ---------------------- | --------------------- |
| US Treasuries          | 90%                   |
| Investment Grade Bonds | 82%                   |
| Gold                   | 78%                   |
| Blue Chip Stocks       | 75%                   |
| Growth Stocks          | 70%                   |

<Warning>
  **Liquidation Example**: If you borrow $65,000 against $100,000 AAPL.t (65% LTV), and AAPL drops 15%, your collateral is worth $85,000. At 75% liquidation threshold ($63,750), you'd be liquidatable.
</Warning>

## Price Feeds

RWA prices are sourced from:

<CardGroup cols={2}>
  <Card title="Primary: Chainlink" icon="link">
    Real-time price feeds from Chainlink oracles
  </Card>

  <Card title="Backup: TWAP" icon="chart-line">
    Time-weighted average prices as fallback
  </Card>
</CardGroup>

### Market Hours Consideration

Traditional markets have limited hours:

* US markets: 9:30 AM - 4:00 PM ET
* After hours: Prices may be stale

**Protocol handling**:

* During market hours: Real-time prices
* After hours: Last closing price with volatility buffer
* Weekends: Friday close with additional margin required

## Custody & Security

<AccordionGroup>
  <Accordion title="Where are my RWA tokens held?" icon="vault">
    Deposited into Centuari's smart contract, secured by the same audited infrastructure as crypto collateral.
  </Accordion>

  <Accordion title="Who backs the tokenized assets?" icon="building">
    Each RWA token has its own issuer with their own custody and redemption process:

    * Backed Assets: Securities held at regulated brokers
    * Ondo Finance: US Treasuries held at qualified custodians
    * Paxos: Gold held in London vaults
  </Accordion>

  <Accordion title="What if the token issuer fails?" icon="triangle-exclamation">
    RWA token issuer risk exists. Centuari mitigates by:

    * Only supporting regulated, audited issuers
    * Conservative LTV ratios
    * Monitoring issuer health
  </Accordion>
</AccordionGroup>

## Mixed Collateral Baskets

Combine crypto and RWA in a single collateral position:

```
Collateral Basket:
  - $30,000 ETH (LTV 80%) = $24,000 borrowing power
  - $50,000 AAPL.t (LTV 65%) = $32,500 borrowing power
  - $20,000 PAXG (LTV 70%) = $14,000 borrowing power

Total Borrowing Power: $70,500 USDC

Benefit: Diversified collateral reduces single-asset risk
```

## Getting RWA Tokens

To use RWA collateral, you first need tokenized assets:

| Issuer | Assets        | Eligibility     | Link                                 |
| ------ | ------------- | --------------- | ------------------------------------ |
| Backed | Stocks, ETFs  | Global (non-US) | [backed.fi](https://backed.fi)       |
| Ondo   | US Treasuries | Accredited US   | [ondo.finance](https://ondo.finance) |
| Paxos  | Gold          | Global          | [paxos.com](https://paxos.com)       |

<Info>
  **Note**: RWA token eligibility varies by jurisdiction. Some are restricted to accredited investors or exclude US persons.
</Info>

## FAQs

<AccordionGroup>
  <Accordion title="Can US residents use RWA collateral?">
    Depends on the specific token. Some (like PAXG) are available to US residents. Others (like Backed securities) exclude US persons. Check issuer requirements.
  </Accordion>

  <Accordion title="What happens during a stock market crash?">
    Same as crypto collateral, if value drops below liquidation threshold, position is liquidated. Conservative LTV ratios provide buffer.
  </Accordion>

  <Accordion title="Can I receive dividends while collateral is deposited?">
    Dividend handling varies by token issuer. Some accrue to your position, others don't distribute during lock. Check specific token documentation.
  </Accordion>

  <Accordion title="Are there additional fees for RWA collateral?">
    No additional Centuari fees. However, RWA tokens may have their own management fees (typically 0.2-0.5% annually).
  </Accordion>
</AccordionGroup>

<Info>
  Centuari will support more local and global real-world assets over time to fulfill our vision of bridging traditional finance and DeFi.
</Info>

<Card title="Risk Parameters" icon="shield" href="./risk-parameters">
  Detailed risk parameters by asset
</Card>