2.1 WORLDASSETS Platform Basic

WAT Protocol Mechanism

The blockchain mechanism of the WAT Protocol will operate in four stages: Stage 1: On-Chain Real Assetization

Real asset proof is achieved through documentation such as proof of real-world assets, title deeds, legal documents, and audit reports.

Asset value proof is achieved through valuation reports, market research reports, prospectuses, and market recognition.

Using diversified data as asset metadata, the classic ERC721 protocol standard is used to mint NFTs of on-chain assets, realizing the on-chain of real assets.

(The true meaning of NFTs is ownership verification, not speculation.)

Stage 2: Asset Tokenization – Dual-Token Model

ATC (Assets Coin) - Asset Ownership Stablecoin

The asset NFT will mint asset ownership tokens, ATC (Assets Coin), through the WAT-M (WAT - Mint Smart Contract). To ensure the value measurement standard of the asset and the future expansion of the asset package, 1 ATC is pegged to 1 USDT/USDC, making ATC a stablecoin. Each time the WAT asset package increases by the value of X dollars in real assets, the WAT Protocol will automatically mint X ATCs.

The newly minted ATCs will belong to the asset providers, who can add them to the WAT-AMM liquidity pool to provide market liquidity and earn transaction fee income from liquidity support; participate in WAT-RWAFi (RWA + DeFi) to earn returns; freely trade them; or simply hold them to earn fixed income token returns.

INC

INC is the yield token that ATC holders can earn. Issued under the ERC20 protocol, the yield rate is set at 5% per annum based on the world standard for high-quality assets (e.g., the standard yield of U.S. Treasury bonds). The distribution of yields is automatically executed by the WAT-I (WAT-Income Smart Contract). Monthly yield distribution is executed automatically based on the equivalent of 168 hours (7 days * 24 hours) of Ethereum blocks. During execution, a snapshot of the average ATC holdings over the previous period is taken, and the yield is calculated based on the real-time market price of INC at the time of distribution. The corresponding amount of INC is then distributed to the on-chain addresses holding ATC. INC carries the on-chain yield of assets and reflects the asset's future appreciation and value performance.

INC can be obtained not only by holding ATC to earn a fixed annual yield of 5%, but also by trading directly on various DEXs and CEXs. Additionally, you can participate in RWAFi to earn additional INC yields through liquidity staking.

Stage 3: RWAFi Liquidity Trading

RWAFi will gradually open multiple product modules. In the early stages, in addition to the basic WAT-AMM liquidity pool, ATC staking pool, INC staking pool, LP I (ATC-INC) staking pool, LP II (ATC-ETH) staking pool, LP III (INC-USDT) staking pool, and LP IV (INC-USDC) staking pool, multiple ecosystem joint DeFi products such as MakerDAO and Solana will be opened in the later stages.

Stage 4: Tokenized Asset Exit – Real Asset Transfer (When Users Need to Obtain Real Assets)

A true RWA ecosystem needs to ensure that tokenized assets can be converted back into real-world assets. The WAT Protocol meets this requirement. When users hold a sufficient amount of ATC and wish to obtain a specific real asset from the WAT asset package, the WAT platform can leverage its mature traditional financial market experience and capabilities to assist customers in acquiring and transferring the desired real asset according to the real-world ownership and transfer requirements and processes.

Any asset in the WAT asset package can be exited in reality, creating a complete closed loop of asset tokenization and re-assetization. This also allows the WAT dual-token model (ATC & INC) to create its own financial regulations and vitality through deflation, inflation, and other self-adjustments.