Settlement Oracle
The settlement oracle produces a live price for each tokenized asset. This is not the NAV. This is what the asset can actually be converted to USDC for right now.
Settlement Price = NAV x (1 - Discount)
What Drives the Discount
One question: how long until this token becomes USDC?
If the issuer has instant liquidity available, the answer is seconds and the discount is small. If the instant sleeve is drained and the vault has to wait 30 days for queued redemption, the discount widens. If both the issuer and the vault are out of liquidity, the discount is at its widest.
Three Layers of Liquidity
The oracle checks three layers in order. The discount is set by whichever layer is available.
Layer 1: Issuer instant redemption. The issuer maintains a USDC reserve for instant redemptions. When it has liquidity, the discount is the issuer's fee + RAVA's spread. For mF-ONE: Midas charges ~1%, RAVA adds ~1%. Total discount ~2%. The asset converts to USDC in seconds.
Layer 2: RAVA as buyer. The issuer's sleeve is empty but RAVA has available liquidity. RAVA buys the token and holds it until the issuer's redemption window. The discount widens because RAVA is taking duration risk. Built from: illiquidity premium, proxy deviation, credit signal, and NAV staleness.
Layer 3: Fully illiquid. Both the issuer and RAVA are out of liquidity. No instant buyer at any price. The oracle still produces a settlement price but it is theoretical. Discount is at its widest.
What the Oracle Monitors
Every asset gets its own oracle instance. Each one reads from the issuer's smart contracts directly:
- Instant sleeve fill level and fee schedule
- Redemption queue depth and estimated wait time
- NAV and how recently it was updated
- RAVA's own available liquidity for that asset
- A liquid proxy instrument that correlates with the asset class
- Credit events in the underlying portfolio
The settlement price recomputes on every input update.
Why It Matters for Other Protocols
The settlement oracle is available for other protocols to reference. A lending market can use RAVA's settlement price instead of raw NAV to set LTVs and liquidation thresholds. A total return swap can use it as the agreed mark. A vault curator can use it to price risk.
Raw NAV tells you what the asset is worth on paper. The settlement price tells you what it is worth in practice.
See the live oracle for real-time data on every listed asset.