How It Works

One loop. Deposit first loss, get leverage, acquire discounted RWAs, share the upside.

The Loop

1. First loss deposit. Your protocol deposits subordinated capital into the vault. The required amount per asset updates every 5 seconds based on real time risk.
2. Senior capital allocation. RAVA sizes dynamic leverage on top of your first loss. The ratio is driven by proxy baskets, on chain monitoring, and issuer liquidity conditions.
3. Liquidation. A holder needs to exit their RWA position. Your protocol has the capital depth to buy below NAV at the discount set by the risk oracle.
4. Recovery. Redeem tokens with the issuer or sell on secondary markets. The spread between acquisition cost and recovery value is the profit.
5. Upside share. Your first loss tranche takes profit first. RAVA participates in the liquidation upside as senior capital. Zero coupon. The split is the only cost.