Competition

Exotic Vaults stands out sharply against the backdrop of its competitors as the first to approach the problem by leveraging finance (DeFi) technologies to allow for global, highly-liquid, and exotic asset trading. Unlike traditional platforms that operate more like closed ecosystems with periodic trading windows or bulletin board models, Exotic Vaults introduces a dynamic, highly-liquid, global and open market environment. This is enabled through a system of Vaults that pool liquidity from various liquidity providers as well as physical assets with pre-defined characteristics (e.g. provenance, condition, asset class) to offer them for open trading. This ensures continuous liquidity and more accurate price discovery without the need for intermediaries.

	Exotic Vaults (XVAULTS)	Bulletin boards (current solutions)
Price discovery	Dynamic & transparent set pricing based on supply and demand	Opaque and outdated Seller asking price often does not align with reality
Time required to facilitate an exchange	Instant (supported by liquidity pool)	Days to years (depending on demand)
Availability to buy & sell	Always available	Trading windows (hours in a month/week)
Availability	Global	Local market of owner
Due diligence	Scoring by various independent actors	Trust in one subject matter expert required

This is a significant improvement over the bulletin board models where pricing can be opaque and outdated, often leading to discrepancies that disadvantage either the buyer or seller, as well as significant delays in successful exits. With Exotic Vaults, investors gain access to a fair and open market where prices are set dynamically based on actual market demand and supply.

By leveraging DeFi technologies, Exotic Vaults ensures that all transactions are not only secure but also compliant with regulatory standards where applicable. The nature of the platform reduces the risk of central points of failure and manipulation, which can be a concern in more traditional, centralised systems. From an operational perspective, Exotic Vaults’ integration of blockchain technology automates and decentralises many of the critical processes involved in asset trading, such as settlement, custody, and compliance, further enhancing the safety and efficiency of transactions. This automation, coupled with the liquidity provision, opens up exotic asset investments to a broader audience by enabling high liquidity, thus converting what were once niche markets into a future staple in anyone’s investment portfolio.

Over time, this model will allow for instant and automated asset backed lending against physical RWAs (subject to separate regulatory assessment; not part of the initial launch scope).