Newrl RWA – Newrl RWA enables reliable lending against real world assets such as agri commodities and invoices.

What is Newrl RWA?

Newrl RWA enables reliable lending against real world assets such as agri commodities and invoices. The real world asset is tokenized first, with a two-step process of encrypted data storage on IPFS, followed by minting of ERC-20 token on Polygon.

This step corresponds in the real-world to either initiation of storage of the corresponding commodity or signing of the invoice by a buyer (depending on which asset it is.) Once tokenized, the owner gets a ERC-20 token of that commodity in their wallet on polygon. They can then borrow against this on-chain as well as off-chain. In off-chain variant, an intermediary platform enables the tokenization of fiat currency so that the lender can transfer it to the smart contract when lending. The smart contract transfers this stablecoin onwards to the borrower based on the collateral.

The borrower can convert the stablecoin back to fiat currency using the on-ramp/off-ramp service provider. The process is reversed while repaying. Upon repayment including the interest, the collateral token is released from the smart contract to the borrower.

They can now take the commodity out of the storage and use it. Upon the exit of the commodity from the storage, the token corresponding to it is destroyed. In case of default, the token is transferred to the lender.

Website:
https://newrl.net/rwa

Newrl RWA stands for Newrl Real World Assets. It’s a system that facilitates using real-world assets like agricultural products or invoices in the DeFi (decentralized finance) space.

Here’s a breakdown of how it works:

Tokenization: Real-world assets are first tokenized. This involves a two-step process:

Data Storage: Data related to the asset is encrypted and stored on a decentralized storage network like IPFS.
Token Minting: An ERC-20 token (a standard for tokens on the Ethereum blockchain) is minted on the Polygon network to represent the real-world asset.
Borrowing and Lending:

On-chain borrowing: Once tokenized, the owner can use the ERC-20 token representing the asset as collateral for loans on DeFi platforms built on the Polygon network.
Off-chain borrowing: An intermediary platform facilitates the tokenization of fiat currency (government-issued currency) so lenders can use it within the Newrl ecosystem. The process involves converting fiat to a stablecoin (a cryptocurrency pegged to a fiat currency) and lending it through a smart contract. The borrower receives the stablecoin and can convert it back to fiat later.
Repayment: Upon repayment of the loan with interest, the collateralized token is released back to the borrower. In the case of commodities, they can retrieve the physical asset from storage. The token representing the returned asset is then destroyed.

Default: If a borrower defaults, the ownership of the tokenized asset is transferred to the lender.

Benefits of Newrl RWA:

Increased Access to Credit: Newrl opens doors for traditional lenders and DeFi participants to interact. This can provide easier access to credit for businesses dealing with real-world assets, particularly in underbanked regions.
Liquidity for Real-World Assets: Tokenization unlocks liquidity for real-world assets that are traditionally illiquid. This allows for easier trading and price discovery.
Here are some resources for further reading:

Newrl RWA website: https://newrl.net/rwa.html
Newrl RWA on The Dapp List: https://thedapplist.com/curate
Your NEWRL RWA Airdrop Handbook: (This article discusses airdrops, a method of distributing cryptocurrency tokens for free. While it doesn’t directly explain Newrl RWA, it provides context on how it might be used) https://medium.com/@larisafedorova5311429/get-your-tokens-newrl-rwa-airdrop-guide-unveiled-332796be9ddc