mgnfy.view

Smart Contract Engineer @KeyringNetwork | Prev @PositionsFi, @BubbleFi_xyz | Security Researcher

[Keyring Network @KeyringNetwork]

@flipdazed and @cjayls decided they were fed up with docsend and wrote their own last night 👀

Super useful for anyone doing pitches to know that this is possible

[Morpho 🦋 @Morpho]

The Morpho Midnight Whitepaper

A noncustodial protocol for fixed rate, fixed term credit markets

https://t.co/0Sws6JiRsA

[mgnfy.view @mgnfy_view]

@sus558219 @AkiraT8 @COMBOBREAKER @ArcSystemWorksU @NitroNY_ Famine? Leo's neutral is above average with huge pokes, guard-point, S and H booms, and K buttons with great reward.

[Centrifuge @centrifuge]

Coinbase has made a strategic investment in Centrifuge and selected Centrifuge as a Preferred Tokenization Infrastructure.

Centrifuge brings deep institutional tokenization expertise.
@coinbase brings consumer access, institutional relationships, and developer reach.

Together, we’re bringing differentiated assets to @base.

[Alex McFarlane @flipdazed]

@symbioticfi and @infiniFi will provide instant liquidity routes to complement our defi native routes for levering in and out of RWA positions.

This is a huge move forwards in the ecosystem because users / protocols can choose to de-leverage:
1. for free by waiting, or
2. Instantly for a fee.

This partnership provides that instant route.

[Keyring Network @KeyringNetwork]

https://t.co/RhKfFDneGV

[Keyring Network @KeyringNetwork]

rwa [un]wind waitlist is now open for a limited time only

Access here: https://t.co/4FNmCk3DyQ

✅Register for early access and market incentives
✅Get an initial boost by signing up early
✅Powered by borrowers leveraging RWA positions

[Wazz @WazzCrypto]

avg defi user every other week in crypto

[Pushpendra Singh @pushpendrakum]

📁 1% TDS
└📁 30% Tax
└📁 No loss set off
└📁 No banking support

This is the worst crypto taxation ever.

#reducecryptotax

[Alex McFarlane @flipdazed]

https://t.co/gb4psAzTJl

[Alex McFarlane @flipdazed]

https://t.co/DErT3lJMHM

[Alex McFarlane @flipdazed]

https://t.co/4DjJ2Nd756

[Pareto @paretocredit]

RWA funds usually process deposits and withdrawals on scheduled NAV cycles rather than instantly. That delay can make them difficult to plug directly into DeFi lending markets where positions are opened and closed atomically.

Wind/unwind mechanisms bridge that gap with temporary “virtual collateral,” keeping the lending position healthy while the fund shares move through the async subscription or redemption process.

Pareto provides the infrastructure that connects the leverage loop to the fund itself, routing capital through the subscription and redemption queues so those RWA positions can be used inside the onchain lending markets.

Unlocking capital efficiency for RWAs. Together.

[Alex McFarlane @flipdazed]

Great to be back on a panel at @rwasummit for @EthCC. . ...

@KeyringNetwork is bringing fixed income to DeFi by solving all the hurdles:
✅ Compliance
✅ Hack/Exploit
✅ Atomic Settlement
✅ Governance

We have already knocked down the first two major hurdles:
🔒 First ever zk-permissioned vault reducing hack and compliance risk
⚛️ Atomic RWAs with zero market maker fees or instantly exit via OTC

We're going to have some major updates over the coming weeks to revolutionise the DeFi rates ecosystem on these final components

[Keyring Research @KeyringResearch]

We did an atomic levered loop with @paretocredit , @centrifuge and @eulerfinance

✅ no external OTC liquidity
✅ async redemption
✅ async mint
✅ extendable to every DeFi protocol.

Here's how the wind/unwind works:

# WIND FLOW: opening a leveraged RWA position

💵 Stage 1: User funds the position
The borrower deposits USDC equity and selects target leverage. That USDC transfers to the wind manager, not directly into the final RWA position. A per-request escrow is deployed to isolate this position from every other request, one escrow per request, no commingling.

🌉 Stage 2: Virtual collateral bridges the settlement gap
The manager mints a pending settlement token (psToken) to the escrow. That token represents a confirmed dollar-denominated pending subscription and functions as virtual collateral during the settlement window. It bridges the gap between "capital has been committed" and "fund tokens have not arrived yet."

🏦 Stage 3: Temporary CDP opens on Euler
The escrow deposits the psToken into a dedicated Euler vault as collateral. The escrow borrows USDC against that virtual collateral and sends the borrowed USDC back to the manager. This creates the temporary CDP: virtual collateral + real debt.

📦 Stage 4: Total capital enters the fund subscription path, fee is collected
The manager now holds the borrower's original equity plus the newly borrowed USDC. The Keyring fee is excluded from the total sent to the fund. The total assets (minus fee) are sent through the Pareto adapter into the async subscription queue toward the RWA fund. The Keyring fee is then transferred to a separate fee collector. Multiple requests within the same epoch accumulate into a single batch.

📅 Stage 5: Issuer processes at NAV
The fund administrator does not see or care about the psToken. The issuer processes subscriptions at the next NAV strike and determines how many real fund shares the subscribed capital buys. Standard off-chain fund logic, bridged back on-chain through the tokenisation layer.

🧾 Stage 6: Queue settles, shares are allocated
Settlement runs opportunistically when users transact (new wind requests or finalisations) and can also be triggered directly via settleQueue. An off-chain operator ensures timely settlement when no user transactions occur. The adapter claims all tranche shares in one shot and streams them pro-rata across pending requests in FIFO order. At this point the request's share allocation is recorded, but the escrow still holds psToken as collateral.

🔁 Stage 7: Finalization swaps virtual collateral for real collateral
A separate finalizeWind call is made by the operator. The escrow atomically swaps: psToken withdrawn and burned, real RWA collateral deposited into the Euler position. If any step fails, the entire transaction reverts.

🎯 Stage 8: Borrower holds the final leveraged position
The completed CDP, now backed by real RWA collateral, transfers to the borrower's own Euler sub-account. What would normally require multiple looping transactions to build leverage happens in a single atomic action. The user holds the leveraged RWA position directly on the lending market.

Wind TLDR
- USDC equity to the manager
- psToken minted to escrow
- temporary CDP opened on Euler
- borrowed USDC sent back to manager
- total capital (minus fee) sent through Pareto into fund subscription
- fee transferred to collector
- issuer allocates fund tokens at NAV
- queue settles, shares allocated to request
- operator calls finalizeWind, psToken burns, real RWA collateral replaces it
- final leveraged position transfers to borrower

# UNWIND FLOW: closing a leveraged RWA position
🔒 Stage 1: User locks the existing position
The borrower starts with a leveraged RWA CDP on Euler: real collateral (deACRDX) and USDC debt. They submit an unwind request. The system checks position health is below liquidation LTV minus a safety buffer. Positions already close to liquidation cannot enter the unwind flow.

🏦 Stage 2: Position moves into the unwind escrow
A dedicated unwind escrow is deployed. Collateral shares transfer from the borrower's sub-account to the escrow first. Then the debt relationship is pulled into the escrow. The position is now isolated.

🪄 Stage 3: Virtual collateral replaces real collateral in one atomic step
The manager mints psTokens to the escrow. In a single atomic batch, the escrow deposits psToken as Euler collateral and withdraws the real RWA collateral back to the manager. Same bridging logic as wind, running in reverse. The psToken keeps the Euler position healthy while the real asset enters the redemption queue.

📤 Stage 4: Real collateral enters the redemption path
The manager sends the real RWA collateral through the Pareto adapter into the fund's redemption queue. The fund processes the redemption according to its normal notice period and dealing cycle.

🎟️ Stage 5: Receipt NFT is minted
After all escrow setup, debt pulling, collateral swapping, and adapter submission is complete, the system mints an ERC-721 Receipt NFT to the borrower. An NFT because every exit has unique parameters: size, fee, and path. It tracks the request through its lifecycle.

⏳ Stage 6: Operator settles when proceeds are available
Settlement liveness depends on an off-chain operator. When the fund settles and the adapter reports claimable assets, the operator calls settlement. The FIFO queue distributes proceeds in order: first request in gets settled first. Settlement correctness is enforced on-chain, but settlement liveness requires the operator call.

💸 Stage 7: Fees deducted, surplus distributed, debt repaid, virtual collateral removed
The NFT holder or operator calls fulfilment. Fees are computed and paid first: Keyring fee to the fee recipient, adapter fee to the adapter's recipient.
Any surplus after fees and debt is transferred to the borrower. The repay amount goes to the escrow. The escrow repays the Euler debt, withdraws psToken to the manager (which burns it), and transfers any remaining position to the caller's sub-account.

🚨 Stage 8: What happens if the escrow goes unhealthy during the wait
The settlement window can last days to weeks. If debt accrues faster than psToken collateral can sustain, the escrow breaches Euler's liquidation LTV.
A liquidation operator deploys a per-liquidation contract that executes Euler's native liquidation: seizes psToken collateral, settles debt, distributes surplus. The request is marked as liquidated and skipped during subsequent queue processing. Wind is configured to avoid this scenario. The unwind system includes a dedicated liquidation path for it.

Unwind TLDR
- health check passes
- collateral to escrow, debt pulled in
- psToken minted, real collateral swapped out atomically
- real collateral sent through Pareto for redemption
- Receipt NFT minted
- issuer redeems at next settlement window
- operator settles queue when proceeds arrive
- fees deducted first
- surplus transferred to borrower
- escrow repays Euler debt, psToken burns
- remaining position to caller's sub-account

Why this is an innovation for RWAs
The fund never sees the psToken. It settles subscriptions and redemptions the same way it always has. The psToken exists purely at the protocol layer. It keeps the Euler position collateralised while the real asset moves through the fund's settlement cycle. Virtual collateral that bridges DeFi's atomic execution with TradFi's async fund mechanics, then disappears.

Winding in uses psTokens that are pegged 1:1 to the debt asset (USDC in this case), whereas unwinding uses psTokens that are pegged 1:1 to the RWA asset (pACRDX in this case).

rwa [un]wind is coming.

[Centrifuge @centrifuge]

Most leveraged RWA friction lives in the gap between onchain execution and offchain settlement. On the way in and on the way out.

When winding and unwinding stops being a manual problem, allocators can finally size to the opportunity.

[Alex McFarlane @flipdazed]

The smartest people in DeFi are tackling this @3FLabs @GearboxProtocol @Zharta super excited to work alongside them to revolutionise fixed income and DeFi!

Here is an explainer how we solve the problem at @KeyringNetwork. Everyone has slightly different ways of doing this, so hopefully this helps understanding of our approach.

PS: The Feyman diagrams took me ages in LaTeX😅

[Keyring Network @KeyringNetwork]

https://t.co/BgqOc5BJEJ

[Euler Labs @eulerfinance]

Institutional RWA needs more than tokenization.

It needs lending infrastructure with vault-level risk isolation, structured unwind mechanics, and verified access without sacrificing composability. The pieces are coming together onchain.

[Keyring Network @KeyringNetwork]

https://t.co/5bI08sNhHI