cRWA, bRWA and tRWA

Lenders receive LP tokens (“cRWA” for USDC; “bRWA” for BUSD, “tRWA” for USDT) when supplying capital to the respective index pools. The LP tokens are interest-accruing ERC-20 tokens, which can be staked to earn NAOS rewards or redeemed (principle + interest) for stablecoins.

As the borrowers continue making interest payments, the value of the LP token increases at the stated APY.

For example, a lender supplying $1,000 USDC to the index pool with 10% APY will receive 1,000 cRWA tokens at $1 per cRWA. As the interest accrues over the year, the lender is able to redeem 1,000 cRWA for $1,100 USDC at $1.1 per cRWA.