RWA Isolated Market

The RWA Isolated Market in Solera is designed to integrate Real World Assets (RWAs) into DeFi, offering lenders and borrowers access to pools backed by whitelisted RWA collateral types. Each market pairs a specific RWA collateral with a borrowing asset, creating an opportunity for users to access liquidity using tokenized RWAs.

Lenders of the borrowing asset have a claim on the underlying collateral. However, unlike traditional crypto collateral, if a borrower's position needs to be liquidated, there may be a waiting period while the collateral is converted into cash or stablecoins. The length of this period depends on the specifications of the RWA product, such as redemption timelines and market liquidity.

Lenders can initiate the redemption process themselves, or opt for a third-party account to handle the conversion of RWA collateral. Each collateral type comes with detailed redemption and repayment information to ensure both lenders and borrowers understand the process. This market setup provides access to real-world value in a decentralized lending environment while maintaining transparency and efficiency.