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Does LynkCoDAO plan to integrate Real World Assets (RWA)?

LynkCoDAO’s strategic deployment in Real World Assets (RWA) has entered a large-scale adoption and deep integration phase. Its core pathway revolves around the integration of “Asset Digitization + Protocol Governance + Ecosystem Synergy”. Below is a detailed breakdown of the latest architecture and governance framework for RWA.


1. Underlying Logic and Technical Support for RWA Deployment

1.1 RWA Asset Pool Composition

LynkCoDAO’s USO stability mechanism was designed from inception to include a multi-asset collateral system, comprising:

  • High-liquidity assets: BTC and ETH, accounting for approximately 40%.

  • Fiat stablecoins: USDT and USDC, accounting for approximately 35%.

  • Tokenized real assets (RWA): Allocations of 25%, with weights dynamically adjustable based on risk factor assessments to optimize collateral efficiency. For example, physical gold or government bonds (with a risk factor of 0.85) can be adjusted dynamically to maintain balance between liquidity and stability, while avoiding excessive reliance on any single asset.

1.2 Cross-chain Deployment and Technical Architecture

LynkCoDAO utilizes Polkadot relay chain + Cosmos SDK hybrid architecture, with a dedicated RWA bridging gateway, enabling:

  • On-chain proof of authenticity: Integrating trusted RWA tokenization platforms to perform proof-of-ownership, valuation audits, and legal compliance validation. Example: Gold-backed tokens are issued on ERC-721 standard, with an issuance fee of 0.01%.

  • Price feed integration: Multi-source price oracles ensure real-time asset valuation, e.g., gold price data aggregated from institutions like S&P Global.

  • Custody and compliance: Partnering with institutions such as Fireblocks and Custodian Bank for secure storage and AML/KYC compliance, ensuring asset safety and meeting regulatory standards across jurisdictions.


2. RWA Governance and Risk Control Mechanisms

2.1 Community-driven RWA Onboarding Workflow

All RWA assets must pass a three-step governance audit before being added to the protocol:

  1. Technical and security review: Conducted by a committee of core developers, security auditors, and governance members to assess code quality and financial feasibility.

  2. Economic feasibility assessment: For example, whether the USO reserve ratio can be maintained under extreme scenarios; stress testing based on historical market data.

  3. Risk pressure testing: Includes simulations of extreme market volatility, collateral depreciation, and liquidity crunches to ensure systemic stability.

2.2 Smart Contract-based Risk Control Framework

LynkCoDAO’s RWA risk control system includes:

  • Dynamic collateral ratios: For instance, gold-backed RWA may have a liquidation threshold of 85%, while higher-volatility assets like tokenized real estate may have a higher buffer (e.g., 75%). If a 5% deviation from the safety threshold is detected, the system auto-initiates liquidation to limit losses.

  • Emergency rebalancing: In case of extreme events (e.g., price collapse or liquidity freeze), governance can vote to inject liquidity from the treasury or suspend specific collateral types.

  • Automated monitoring: Smart contracts continuously track RWA pool health, liquidation risk, and collateral composition, ensuring transparency through on-chain reporting.


3. Value Capture Through RWA Integration

LynkCoDAO’s integration of RWA is not only about asset inclusion but also about creating new yield opportunities for token holders. By combining stable income from RWA with DeFi-native yield strategies, the protocol ensures:

  • Stable baseline returns from real-world income streams (e.g., bond interest, rental yields).

  • DeFi yield enhancement by leveraging RWA as collateral in other on-chain protocols.

  • Risk diversification through multi-asset exposure, reducing systemic volatility and improving long-term stability for USO.

This dual-yield model strengthens LynkCoDAO’s competitive edge, enabling it to offer sustainable returns while maintaining robust collateral security.

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