UIP007 - Introducing RWA markets on Unitus

Summary

This proposal seeks to introduce RWA markets on Unitus, unlocking an immediate access for Unitus users to earn sustainable real yield backed by RWAs, starting from treasury bills, and may expand to a vast array of assets such as commodities, real estate, and so on.

The first of such is the GMMF01 token issued by DigiFT Global, the global platform of the DigiFT group.

Background

Securities tokenization is one of DeFi’s most promising use cases. In recent years, we have seen a growing number of traditional financial instruments, such as U.S. Treasury bonds, integrated into DeFi protocols by pioneers like MakerDAO. These integrations not only allow a broader pool of investors to engage with the underlying assets but also enable sustainable yields over short-term mercenary gains, reshaping investment strategies and the DeFi landscape.

dForce is committing to integrating RWA elements to provide sustainable yields for our users and diversify our revenue by incorporating RWAs into our portfolio.

To facilitate full decentralization and transparency of tokenized securities, we are proposing a partnership with DigiFT to onboard GMMF01 token as collateral on Unitus Finance, starting from Arbitrum first.

About DigiFT

DigiFT Global is an affiliate of DigiFT Singapore, the regulated exchange for On-Chain real world assets. DigiFT Singapore is the first regulated exchange for on-chain real-world assets, approved as a Recognised Market Operator with a Capital Markets Services license by the Monetary Authority of Singapore.

The GMMF01 token aims to provide investors with exposure to high quality short-term money market instruments and debt securities. Underlying fund unit is held in custody by MAS-licensed custodian and is bankruptcy remote from the issuer and exchange.

About GMMF01

• Token Name: DigiFT Global USD Money Market Fund Token
• Token ID: GMMF01
• Currency: USDC
• Underlying Product: CSOP USD Money Market Fund SGXZ96797238
• Token design: 1 GMMF01 = 1 share of underlying
• 7-day yield: 5.16% (as of June 21th)
• Token indicative price: 1.0897 USDC (as of June 21th)
• Subscription fee: 0%
• Subscription price: based on the market price of the underlying product
• Subscription details: settlement time of no more than T+2 Singapore business days (excluding non-trading days in the U.S.)
• Minimum subscription amount: 2,000 USDC, incremental units of 1,000 USDC
• Redemption fee: 0.1%
• Redemption price: based on the market price of the underlying product
• Redemption details: settlement time of no more than T+3 Singapore business days (excluding
• Minimum redemption amount: 1 GMMF01 token, incremental units of 0.0001 GMMF01 token
• Secondary liquidity: currently GMMF01 does not have secondary liquidity. Need to subscribe and redeem to get or sell GMMF01.

Investors who want to buy GMMF01 must go through KYC on DigiFT Global (digift.io), and get wallet whitelisted. At the moment, investors can only subscribe and redeem on Ethereum. DigiFT Global will provide a bridge for investors to bridge token between Ethereum and Arbitrum.

Motivation

Today, RWAs are becoming practical, functional, and critical components of the DeFi landscape, carrying the trust of value and sustainable yields into DeFi.

The integration of RWA elements into Unitus carry many benefits:

• Liquidity boost: RWA integration will introduce new capital into Unitus, fueling the TVL growth and generate more revenue for both our users and the protocol.
• User base expansion: RWA integration not only brings fresh opportunities to existing investors focusing on stable, long-term investment opportunities rather than chasing quick gains, but also attracts new participants, enhancing the overall stability and growth potential of Unitus Finance.
• New collateral class: RWAs will diversify collateral portfolio and bolster the robustness for Unitus.
• Transparency: Every transaction and ownership detail of an RWA is recorded and openly verifiable.

Specification

Add GMMF01 as collateral to the RWA market on Arbitrum, so that users can borrow USDC for immediate access to real yields.

Proposed parameters for the GMMF01 token are as below:

• Collateral: Yes
• Can be borrowed: No
• Network: Arbitrum
• LTV: 92%
• Supply cap: 5,000,000 USD
• Borrow cap: 5,000,000 in USDC
• Liquidation penalty: 2%
• Interest rate: capped at 6%