About RWA Liquidity Hub

Currently, even if RWA exists on-chain, actual trading volume is very limited. This is not because there is no demand for RWA, but because RWA does not fit the existing DEX structure.

Existing AMMs are designed with sufficient liquidity and price volatility in mind, but RWA is based on real assets with limited supply and price stability is key. Applying the same structure results in severe slippage and price distortion.

RWA issuers become reluctant to provide pool liquidity, users avoid trading, and as a result, RWA trading falls into a vicious cycle of inactivity.

Does not rely on external oracles or NAV inputs. Prices are automatically calculated through Virtual Reserve (virtual reserves) managed within the pool.

Virtual Reserve is not a device for fixing prices. It serves to smooth the price curve even in shallow liquidity situations, mitigating extreme slippage and sudden price changes.

The key point is the separation of price calculation and actual execution. Prices are calculated based on ratios including virtual reserves, but actual execution always occurs only within the real inventory (realRWA) limit.

Swap requests exceeding real inventory are not executed immediately but converted to Reservation status. The system provides users with reasonable waiting options without selling non-existent assets.

Because the nature of RWA and the philosophy of decentralized exchanges fundamentally conflict with oracle-based pricing structures.

NAV/Oracle prices must be calculated and updated by someone. The question "who defines the price" directly leads to responsibility, trust, and regulatory issues in the RWA environment. Price update delays or opacity in calculation methods can lead to arbitrage, price distortion, and erosion of trust in issuers.

Since RWA is based on real assets, it is difficult to assume that prices exist singularly and clearly. Various factors such as real market liquidity, interest rate environment, and tradability work in combination.

This project chooses a structure that leaves price formation itself to market mechanisms, rather than injecting prices externally.

This project does not claim that this price is the fair value of RWA or a legal/accounting standard price. This price is merely an exchange ratio formed on a decentralized exchange.

This position does not attribute price responsibility to any specific party, but reduces the outcome of price formation to the collective actions of market participants. This not only aligns with the essence of decentralized exchanges, but structurally blocks price responsibility and manipulation controversies that may arise in the RWA environment.