WHAT IS RE.AL?

re.al is the first permissionless L2 for tokenized real world assets (RWAs).

Through tokenization and DeFi composability, we will redefine asset ownership and value creation, transforming the way RWAs are bought, sold, and leveraged on-chain.

By supporting the development of a robust ecosystem to build deep liquidity for RWAs, we seek to be the primary destination for builders and investors who are looking to participate in this emerging DeFi category.

Why RWAs?

Through tokenization, traditional assets benefit from the inherent advantages of blockchain technology, improving operability, access, liquidity and composability.

• Tokenization breaks down financial barriers (high cost of entry) enabling a broader range of buyers to own and benefit from these assets, leading to a more inclusive financial ecosystem.

• Tokenizing RWAs brings enhanced liquidity and global access to markets that are typically characterized by their illiquidity. On-chain real estate can be bought or sold in 15 seconds, just like any other crypto asset. Combined with the global nature of crypto markets, it's now easy for anyone, anywhere to access valuable assets, unencumbered by procedural or geographical restrictions.

• Combined with DeFi primitives, tokenized RWAs can be used to build innovative financial products and services, maximizing the impact of some of the world's most established assets. Simultaneously, consistent, uncorrelated sources of yield flow into the cryptoeconomy, in a unique non-zero-sum-game that benefits all market participants.

re.al recognizes the power of RWAs to improve the cryptoeconomy and the financial standing of users world-wide, which is why we've built crypto's largest, permissionless chain for tokenized RWAs.

About the Chain

re.al is modular Layer 2 chain using an optimistic rollup protocol with interactive fraud proofs,  built with Arbitrum Orbit. re.al is designed to reduce transaction costs and increase throughput, all while inheriting the security of Ethereum L1.

Using Arbitrum Orbit, re.al becomes a fully modular instance of Arbitrum Nitro, (Ethereum’s leading Layer 2 scaling technology) allowing re.al to progressively decentralize applications and incrementally adopt the properties and security assumptions of Ethereum's base layer in an execution environment tailored precisely to the business needs of the chain and our users’ preferences.

This comes to life through:

• A custom bridge that allows ETH and DAI to natively accrue yield on the chain

• Modular DA to reduce costs while continuously moving towards decentralization

• A custom end-to-end selection of web 3 infrastructure partners providing bespoke solutions on cross-chain messaging, oracles and indexing.

By embracing a modular approach to construction, re.al is free to grow with the category, integrating the best in new technologies and meeting consumer needs as they evolve. To remain competitive in a category that is in a constant state of flux and transformation, we must prioritize change and development over permanence and uniformity. And we’re free to pursue this path given the steadfast security provided by the Ethereum L1.

re.al Build and Benefit Summary:

Ethereum Security: re.al inherits security from Ethereum, leveraging interactive fraud proofs pioneered by Arbiturm, ensuring stored transaction data cannot be changed or corrupted.

Lower Costs: increased throughput to Ethereum Mainnet by moving computation and state-storage to our Layer 2. re.al can process thousands of transactions in a batch, only posting the most important data back to Ethereum Mainnet, giving users the same security of Ethereum at a fraction of the costs.

Faster Settlement: Arbitrum Data Availability Committee (DAC) expedites the settlement of transactions on re.al.

EVM+ Equivalence: EVM+ compatibility introduced by Stylus means builders can deploy EVM-compatible smart contracts using Solidity, C, C++, and Rust. Simply copy-paste existing smart contracts into re.al for immediate deployment.

Through our integration with Arbiturm, re.al has access to all of the Arbitrum Nitro code upgrades, feature additions, and improvements, incorporating the latest and greatest in Ethereum scaling technology without compromising the top-notch security of the most mature Layer 1 public protocol, Ethereum.

End-User Benefits

For the first time, valuable real world assets have an on-chain home, in a purpose-built, permissionless ecosystem. Now anyone, anywhere, with any budget can safely access the world's leading asset classes, with near-instant transaction finality and low fees. Crypto volatility and portfolio risk can easily be hedged with non-correlated assets, now available without having to move funds off-chain.

Off-Chain Yields

re.al brings off-chain yields on chain, creating new opportunities for builders and value for investors, in a non-zero-sum approach. Fiat enters the cryptoeconomy through re.al, as “real yield” in this ecosystem. This consistent influx of new cash is a unique asset for protocol teams, who can now use rental income as token liquidity incentives or design CDPs allowing users to stack T-Bills for leveraged yields.

Native Yield Accrual

Supplementing off-chain yields are native on-chain yields. All ETH and DAI sent to re.al is staked through the bridge process. By simply holding reETH, our native gas token, staked bridge yield automatically accrues to all Ether on the chain. DAI on re.al rebases to distribute yield, ensuring users have multiple options on rebasing stablecoins.

Deep Liquidity

re.al seeks to be the liquidity hub for tokenized RWAs. Concentrated liquidity pools enhance capital efficiency for optimized trades with less slippage. Off-chain yields can be leveraged in sustainable flywheels designed to attract and reward liquidity providers. With these off-chain yields correlated to TVL, as re.al grows, so do the incentives, creating new opportunities for RWA liquidity providers while helping improve the trading environment.

Ecosystem Collaborations

Through robust and coordinated ecosystem integrations, re.al offers users unique opportunities that can’t be found elsewhere in DeFi. Our team is committed to the organized collaboration between protocols with the goal of supporting product development and innovation.

The $RWA Token

RWA is the governance token for re.al and it’s been designed to upend the notion of a worthless L2 governance token.

With RWA we’ve set a new standard in value accrual for L2 tokens, users who lock RWA into veRWA will receive a proportional share of all chain revenue, including:

• 100% of transaction fee revenue

• Revenues from the various products/protocols deployed to re.al

RWA supply is capped at ~33,300,000. All of the supply is already in circulation, with various deflationary mechanisms built into the tokenomics.

RWA had no VC or influencer pre-sale and there are no VC unlocks to “dump” on buyers. We’ll be working with a respected team on a fair launch for the new token, helping us determine a fair market value for RWA when liquidity is eventually seeded after launch.

RWA is a migrated version of TNGBL. While many protocols may have opted for a new token, likely a more lucrative option for the team, we believed it was in the best interest of our current users and community that we continue to accrue value to the same token that’s been used to support this team in the past. Tangible investors who believed in RWAs when we launched in April ‘22, who stuck with us through all the ups and downs, will benefit from all the benefits RWA has to offer. TNGBL liquidity has been pulled and those tokens will be used in the public offering with our LBP partner.

Our focus with re.al and RWA is on long-term sustainability and benefits. We’re committed to building an ecosystem that rewards actual participation and sticky liquidity, with consistent incentives and a sharing of all the profits. re.al value lies in the execution of a successful, long-term strategy.

To that point, we’ll be announcing details on an airdrop of veRWA to active chain participants. Follow along for all the details on the program to be revealed in the coming weeks.

Ecosystem Partners

re.al will deploy with a complimentary suite of products designed to meet the needs of users from Day 1.

Tangible: Tokenization

Tangible will continue forward as the tokenization protocol for re.al, bringing valuable off-chain assets on-chain. Core products will include:

• Baskets: Tokenized real estate

• USTB: A rebasing stablecoin backed by treasury bills, a wrapped version of Mountain Protocol’s USDM

• RWA marketplace: Buy, sell and trade tokenized RWAs and veRWA token positions

Pearl: Liquidity

Pearl v2 brings concentrated liquidity to tokenized RWAs. The proven flywheel that helped establish Pearl as the second largest DEX on Polygon returns, powered by off-chain yields from T-Bills and tokenized real estate. Key features:

• Concentrated liquidity pools designed for rebasing tokens

• Proprietary ALM (Trident)

• Transparent, 100% on-chain rewards calculations

• Caviar (now operated by Pearl)

Stack: Borrowing and Leverage

Stack gives users the ability to borrow $MORE and take leverage on yield-generating, tokenized RWAs. For the first time, users can get leverage on T-Bill yields knowing they can never be liquidated based on price volatility.

These protocols will help put re.al on the pathway to success, but it’s only the start. Consistent, off-chain yields are powerful lego for product design in crypto and we’re excited to see other teams of builders already working on new protocols to deploy to re.al in the near future.

Developer Support

With veRWA capturing all of the chain revenue, plus incremental yield shared from the protocols deployed on the chain, re.al has a unique mechanism to provide developers with sustained support while they’re building products for the chain.

Let’s break the protocol lifecycle down into two basic phases to understand how our flywheel works to sustain builder support.

1. Development Phase: Teams designing, developing, community-building, auditing and launching their protocols

2. Growth Phase: Protocols are deployed, teams are attracting users and looking for incentives to deepen liquidity for their token

Development Phase:

By delegating protocol-owned veRWA to chain builders for a guaranteed period of time, we can provide them with a sustainable source of “real yield” funding to support their product development initiatives on re.al. As value accrues to the delegated veRWA, builders can claim that revenue and apply it to team salaries or other costs incurred during their development window.

Delegated veRWA Features:

• Delegated veRWA fees can claimed by the designated wallet at any time

• Delegated veRWA allocates its voting stake for network governance to the designated wallet

• Delegated veRWA can be time-locked in a veRWA position, guaranteeing the designated wallet access to fees/voting rights for a specified period of time

Once a team receives veRWA, the expectation is that they’ll continue their build and development efforts on re.al. If they abandon that work, the veRWA will simply be taken back by the chain. There is no additional requirement or responsibility that they share revenues with veRWA holders once deployed. That’s up to the protocol, however as you’ll see below, we believe we have the right mechanisms in place to incentivize ecosystem profit-sharing.

Growth Phase:

Once deployed, most protocols will look to build liquidity for their token to help support ongoing investment into the business and positive outcomes for their community.

Pearl is the native liquidity hub on re.al. This type of ve(3,3) / Solidly DEX has emerged as a powerful solution to the cold-start liquidity challenge. Teams provide tokens as incentives to DEX voters who in turn send DEX emissions in the direction of the protocol's token pair. Farmers then provide liquidity to that pool to capture farming yield and the protocol begins the process of liquidity generation.

However, incentive sustainability remains an ongoing challenge for many young teams, as their ability to provide consistent incentives diminishes, so does their liquidity.

As part of the developer support flywheel, re.al can provide protocol teams with incentive recycling on Pearl, designed to provide a sustained reward to voters and increase the impact of protocol incentive costs by up to 3x. This helps ensure a consistent stream of yield to their token’s pool on the exchange and sustained liquidity.

In return, teams will agree to direct a percentage of protocol revenue back to veRWA, helping to support new teams with delegated positions looking to build on the chain. Liquidity incentives will be provided as long as teams continue to share the designated revenue back to veRWA.

In summary, delegated veRWA is non-inflationary public goods funding that comes at no incremental expense to the network itself and without the long-term loss of equity. Delegated veRWA is a powerful network asset that can be used in the development of a thriving ecosystem on re.al. Combined with liquidity incentives on Pearl, this flywheel is the ultimate vision of public goods for public good.

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re.al is a bold new vision in the ongoing evolution of L2s. It’s been purpose-built for RWAs and designed with the goal of long-term ecosystem sustainability. Incentives drive action in crypto and re.al will be the first chain to fully embrace that philosophy, sharing all of the rewards amongst all invested participants.