Genius Yield | Regulatory-compliant RWA swaps

[GENERAL] Name and surname of main applicant

Genius Yield Team

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Requested funds in ada

462222

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

12

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

An extension of the Genius Yield Platform adding swap features of RWAs in a regulatory-compliant way.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs

Selected elements of the Genius Yield DEX have been already open-sourced.

For more information, head to https://www.geniusyield.co/ , "Resources" tab.

[SOLUTION] Please describe your proposed solution

The RWA tokens serve various functions, such as representing ownership, enabling governance voting, and participating in revenue sharing.

The goal is to create a legally compliant framework that fits regional asset ownership rules. This allows tangible assets to be represented by blockchain-based assets.

To ensure the legitimacy of real-world assets in the digital ecosystem, a strong authentication and verification mechanisms will be established.

Additionally, we'll build a digital infrastructure to tokenize tangible assets. Smart contracts will be used to manage income distribution efficiently.

We plan to adapt existing Genius Yield swap mechanisms and incentive structures to facilitate easy trading of RWA tokens and provide rewards based on income.

A key part of this effort is developing governance mechanisms tailored for managing real-world assets. This will ensure compliance with regulations and promote transparent asset governance.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

The project is positioned to have several positive impacts on the broader Cardano community. By tokenizing real-world assets (RWAs), it aims to broaden the range of assets available within the Cardano ecosystem, fostering diversity and accessibility for investors. This expansion enables investors to diversify their portfolios with assets that were traditionally inaccessible or illiquid.

The project plays a crucial role in legitimizing Cardano as a robust and versatile blockchain. It serves as a bridge between traditional finance (TradFi) and decentralized finance (DeFi), firmly anchoring Cardano into real-world processes and entities. By facilitating the representation of tangible assets on the blockchain, Cardano demonstrates its capacity to provide a secure and transparent environment for asset ownership and management. This validation is pivotal for attracting institutional investors and enterprises, who typically seek stability and compliance with regulatory frameworks.

The project's development of smart contracts tailored to automate asset income distribution, along with modifications to existing swap and reward systems, expands the utility of Cardano's infrastructure. This, in turn, attracts a broader array of users and developers to the platform, driving innovation and economic growth. By bridging the gap between TradFi and DeFi, Cardano positions itself as a key player in the evolution of financial systems.

Ultimately, by legitimizing Cardano through the integration of real-world assets and bridging the gap between TradFi and DeFi, the project contributes to the platform's long-term sustainability and relevance in the evolving landscape of global finance. It solidifies Cardano's position as a viable infrastructure for building real-world applications and underscores its potential to revolutionize how assets are owned, managed, and exchanged in the digital age.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Genius Yield is well poised to advance in the development of Real World Asset (RWA) applications. Genius Yield has demonstrated proficiency in creating applications and systems for token issuance, trading, and dispensing diverse rewards, which form a significant component of RWA requirements.

Further enhancement of these systems is necessary, alongside the incorporation of legal frameworks, verification protocols, and a digital pipeline infrastructure to facilitate clients in the digitization of real-world asset ownership.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Legal Framework Development

Time required: 2 months

Dependencies: None

Key results: Establish the legal framework based on regional asset ownership requirements to enable representation of real-world assets as on-chain assets with specific token rights. This milestone involves digitisation of the necessary documentation, process and custody rights. With the outcome of generalised modular contracts per:

• Region
• RWA type
• Custody type
• Security type

Real World Asset Verification and Evaluation

Time required: 2 months

Dependencies: None

Key results: Develop a robust process and integrations required to verify the legitimacy of real-world assets to be tokenized. This involves creating systems to perform due diligence relating to: audits, verification of ownership rights and evaluation.

Digital Pipeline

Time required: 4 months

Dependencies: Legal Framework Development & Real World Asset Verification and Evaluation

Key results: Build a digital pipeline infrastructure to tokenize real-world assets efficiently and onboard asset owners and perform KYC. Providing options to asset owners and eliciting the required inputs established by the legal framework in milestone 1. Inputs will also will be forwarded to the asset verification and evaluation systems before proceeding with tokenization.

RWA token issuance, restrictions and transfer

Time required: 2 months

Dependencies: None

Key results: Create and deploy smart contracts to control RWA ownership, token minting, token burning and transfer in a regulatory compliant manner. These smart contracts should be designed to limit RWA transactions in a regulatory compliant manner.

RWA token income distribution

Time required: 2 months

Dependencies: Legal Framework Development

Key results: Create and deploy smart contracts to manage asset income distribution. These smart contracts should be designed to accurately distribute revenue shares, and ownership benefits to token holders based on predefined rules and conditions.

RWA Swap Application

Time required: 4 months

Dependencies: Smart contract development & Legal framework

Key results: Modify existing Genius Yield swap and reward systems to facilitate trading of RWA tokens and distribute income rewards. This involves integrating the RWA token ecosystem with existing decentralized finance (DeFi) platforms and reward mechanisms. Implementation of KYC and other securities related regulatory compliance.

[RESOURCES] Who is in the project team and what are their roles?

Laurent Bellandi - Chief Executive Officer & Co-Founder

Laurent is a serial entrepreneur who has focused on digital/online businesses for over 20 years. Lately he co-founded both Genius Yield, one of the most innovative DeFi protocols, and the Genius X accelerator. At Genius X he manages the day-to-day operations of the program and launchpad operating team, formulating the long-term business strategy and leading strategic decisions.

Dr. Lars Brünjes - Chief Technology Officer & Co-Founder

Lars is a mathematician and Haskell developer. As Director of Education at Input Output Global (IOG), the engineering research company behind the development of the Cardano blockchain, Lars has taught thousands of people how to build smart contracts. As Chief Technology Officer of Genius X (and Genius Yield), Lars leads research & development with the technical team, and has written the smart contract code for Genius X Launchpad, and other products on the Genius X platform.

Dr. Sothy Kol-Men - Chief Regulatory Officer & Co-Founder

Sothy has over 20 years of experience in digital finance, investments, building new ventures, and regulation. He is a legal expert, guiding Genius X (and Genius Yield) through legal and regulatory matters for fintech rules and regulatory compliance, particularly for the Genius X Launchpad. Sothy is also a highly regarded professional in the Swiss and European crypto network, where he leverages his network for originating high-potential founders and projects for the Genius X Accelerator Program.

Dikemba Balogu - Chief Financial Officer

Dikemba is finance professional with years of experience in portfolio management, equity research, capital markets, valuation, and financial planning. As Chief Financial Officer of Genius Yield and Genius X, Dikemba leads financial planning and forecasting, profit optimization strategies for products, long-term product development and strategy, and token economics. Dikemba has advised 20+ startups on business strategy, token valuation, creating token utilities, token distribution schedules, and budgeting and forecasting.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Milestone 1 (Legal Framework Development):

$50/hr x 8 weeks x 40 hr/week = $16000

Milestone 2 (Real World Asset Verification and Evaluation):

$50/hr x 8 weeks x 40 hr/week = $16000

$50/hr x 8 weeks x 40 hr/week = $16000

Milestone 3 (Digital Pipeline):

$50/hr x 16 weeks x 40 hr/week = $32000

$50/hr x 16 weeks x 40 hr/week = $32000

Milestone 4 (RWA token issuance, restrictions and transfer):

$50/hr x 8 weeks x 40 hr/week = $16000

Milestone 4 (RWA token income distribution):

$50/hr x 8 weeks x 40 hr/week = $16000

Final Milestone (RWA Swap Application):

$50/hr x 16 weeks x 40 hr/week = $32000

$50/hr x 16 weeks x 40 hr/week = $32000

TOTAL ($) = $208000

TOTAL ($0.45/ADA) = 462222 ADA

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

Anchoring Cardano into real-world processes through the tokenization of assets has profound implications for the broader adoption of blockchain technology. By digitizing real-world assets such as real estate, commodities, and intellectual property rights, Cardano facilitates more efficient and transparent asset management processes. This not only reduces friction and costs associated with traditional asset ownership but also opens up new avenues for liquidity and investment opportunities.

Block chain developer hourly rates are charged at an international industry standard of ~$50 an hour. Reference: https://survey.stackoverflow.co/2023/#work-salary