Technology Overview
Exotic Vaults leverages cutting-edge blockchain technology to create a decentralised and efficient marketplace for RWAs. The platform’s architecture is designed for scalability, security, and user accessibility.
Blockchain
Exotic Vaults will deploy on the Avalanche C‑Chain (EVM) at launch, leveraging its robust ecosystem and developer community. ERC‑721 is used for single‑asset tokens and ERC‑20 for vault fractions and $XVAULT. The protocol uses Ethereum’s ERC-721 standard for asset tokenisation, ensuring compatibility with existing tools and platforms. ERC-20 tokens power Vault liquidity, while the governance token ($XVAULT) operates as an ERC-20 token as well.
Vault System
The core innovation of the protocol lies in its Vault system, which pools similar assets and enables them to be traded as a collection. Each Vault comprises:
Vault Tokens (ERC-20): Representing fractional ownership of the totality of assets in the Vault.
Liquidity Pool: Funded by liquidity providers using USDC-Vault Token pairs to ensure seamless trading.
Automated Market Maker (AMM): Utilising the standard formula (k = x * y) for efficient price discovery and trading.
Asset Tokenisation
Beneficial ownership to a single asset is represented by ERC‑721; vault fractions are ERC‑20. Only ERC‑721s minted to the protocol standard can be deposited into vaults. The protocol ensures that each token is tied to a verified physical asset, complete with metadata describing its provenance, condition, and other characteristics. Only ERC-721 tokens minted to the standard defined by the protocol can be used to be deposited in Vaults.
Scalable Infrastructure
The protocol is built to handle high transaction volumes, with a focus on low latency and efficient processing. Scalability is achieved through modular smart contract design and integration with Layer 2 solutions, such as rollups, to reduce congestion and gas fees.
User Interface and Experience
The platform’s user interface will prioritize simplicity and accessibility, ensuring that both novice and experienced users can navigate and participate easily. Features such as the “zap” function will allow users to provide liquidity with minimal friction, and intuitive dashboards will provide real-time insights into holdings and market activity.
Governance Mechanisms
The platform will be governed by a decentralised autonomous organisation (DAO) powered by $XVAULT tokens. Governance decisions will be executed via smart contracts, ensuring transparency and alignment with the community’s collective vision.
Last updated