# Executive Summary Bridging the $12 Trillion Gap: A Blockchain-Driven Future for E-Commerce Liquidity {% embed url="" %} Real "Internet Capital Markets" comes when developers can issue equity coins that have real claims on real cash flows {% endembed %} Imagine an credit-equity hybrid token offering the explosive 50%+ year-over-year growth potential of a small-to-mid-cap company, combined with the effortless exit liquidity of a large-cap stock, all while delivering consistent 10%+ dividend yields. This is the future of e-commerce investment, unconstrained by traditional market limitations. The current $8.1 trillion global e-commerce sector, projected to grow further, grapples with a $12 trillion liquidity gap, hindering small and medium-sized businesses (SMBs) and leaving investors searching for high-yield, non-speculative opportunities in real-world assets (RWAs). Traditional financing models—relying on manual oversight, opaque reporting, and costly intermediaries—fail to bridge this $12 trillion gap in an efficient way. Enter the **Liquid Royalty Protocol**, a revolutionary blockchain-native solution designed to address these market inefficiencies. Liquid Royalty Protocol tokenizes e-commerce cashflow as Royalty Tokens, offering a seamless, transparent, and automated process for creating institutional-grade yield positions. By integrating the power of structured finance with the transparency and decentralization of blockchain technology, Liquid Royalty Protocol provides a high-yield, low-barrier alternative to traditional private credit. Key features of Liquid Royalty Protocol include: * **Enforced Dividends**: Smart contracts capture a fixed 10% of merchant **topline revenue** at the point of sale, converting it into stablecoin dividends distributed pro-rata to Royalty Token holders. * **Hybrid Web2/Web3 Architecture**: Proprietary Key Permission Smart Contracts (KPSC) integrate with platforms like Amazon, Shopify, and Airwallex, ensuring automatic revenue sharing without merchant discretion. * **Risk-Tailored Tranching**: Investors can choose from senior or junior tranches, aligning returns with their risk appetite while eliminating 80% of the overhead seen in traditional securitization. * **On-Chain Transparency**: Every transaction, dividend payout, and governance vote is recorded immutably on the blockchain, offering real-time auditability. Liquid Royalty Protocol democratizes access to private equity-like returns, offering institutional-grade royalty sharing of 10% fixed on **topline revenue** with the liquidity and accessibility of public markets. Investors can participate with as little as $100, bypassing the traditional $500,000 minimums. Moreover, the protocol is collateralized by recurring cash flows from high-growth e-commerce businesses, ensuring stability and security for investors. The Liquid Royalty Protocol advantage lies in its ability to replace manual processes and intermediaries with blockchain automation, enabling: * **Predictable Yield**: Dividends tied to topline revenue, unaffected by operational costs like marketing or payroll. * **Fast Liquidity**: Daily liquidity through decentralized exchanges, eliminating the multi-year lockups typical of private equity. * **Transparent Operations**: Real-time performance metrics, including sales and inventory turnover, available on a public dashboard. By 2030, Liquid Royalty aims to tokenize over $50 billion in e-commerce cash flows, positioning itself as the benchmark for decentralized private credit and a bridge between traditional finance (TradFi) and decentralized finance (DeFi). # Introduction – Market Opportunity & Problem Unlocking Capital for E-Commerce: Overcoming the Liquidity Gap with Blockchain Innovation Despite rapid growth, the global e-commerce industry faces an enormous liquidity gap that disproportionately affects small and [medium-sized businesses (SMBs)](/introduction/readme-2#medium-sized-businesses-smbs). While [SMBs ](/introduction/readme-2#medium-sized-businesses-smbs)in e-commerce generate predictable and recurring revenue streams, accessing affordable, institutional-grade financing remains out of reach. This creates a significant market opportunity for a new kind of financial solution—one that combines the stability of traditional finance with the agility and accessibility of blockchain technology. Traditional financing options, including private credit and equity funding, fail to address this need efficiently. Key challenges include: * **Inefficiency**: The traditional process of obtaining financing involves cumbersome due diligence, high fees, and slow decision-making, often leaving [SMBs ](/introduction/readme-2#medium-sized-businesses-smbs)with delayed or inadequate funding. * **Illiquidity**: Conventional financing models lock up capital for years, leaving businesses and investors with limited flexibility. For investors, the lack of liquidity in private credit markets is a significant deterrent. * **Lack of Transparency**: Private equity and credit markets often lack real-time reporting, making it difficult for investors to track the performance of their investments or hold them accountable. The **Liquid Royalty Protocol** addresses these problems by tokenizing recurring e-commerce cash flows, enabling fractional ownership of high-yield cashflow positions. By automating dividend distribution and implementing transparent, blockchain-based processes, Liquid Royalty Protocol removes the inefficiencies, illiquidity, and opacity that have plagued traditional models for years. This approach not only enables investors to access high-quality, non-speculative assets but also gives SMBs the ability to tap into new capital sources without the delays and costs associated with traditional financing. At its core, Liquid Royalty Protocol is a **decentralized, blockchain-native financial ecosystem** that bridges the gap between traditional finance and the emerging [DeFi ](/introduction/readme-2#decentralized-finance-defi)space. The protocol offers an unprecedented combination of institutional-grade returns, liquidity, and transparency—all underpinned by the reliability of e-commerce revenue streams. # Solution Overview Integrating Structured Finance with Blockchain Technology The Liquid Royalty Protocol addresses e-commerce liquidity gaps by tokenizing a share of real-world merchant revenue, derived from captured sales, into tradable digital assets that yield stablecoin dividends. Liquid Royalty Protocol merges traditional finance principles with blockchain's transparency, accessibility, and automation. **How Liquid Royalty Protocol Works: The Core Mechanism**
Liquid Royalty Protocol creates Royalty Tokens distributing regular stablecoin dividends from e-commerce revenue: 1. **Revenue Capture:** Merchant sales revenue is automatically directed via integrations (e.g., payment gateways) to a smart contract controlled bank account. 2. **Automated Processing:** The smart contract then automatically: * **Segregates Royalty Share:** Isolates the pre-agreed percentage of revenue - currently set at 10% based on market carp and profit margins of our typical merchant profiles. * **Converts to Stablecoins:** Converts this royalty share to stablecoins, transferring them to the Royalty Token Dividend Wallet. * **Remits to Merchant:** Returns the remaining topline cashflow (e.g. $90) to the merchant. 3. **Dividend Distribution:** Monthly, accumulated stablecoins in the Dividend Wallet are distributed pro-rata to Royalty Token holders and Liquidity Pool. This ensures only the agreed royalty is tokenized, merchants receive their operational revenue promptly, and investors earn stablecoin dividends from e-commerce revenue. **Structured Investment Products** Beyond the core token, Liquid Royalty Protocol supports structured products like Senior (Fixed 11-13% APY) and Junior tranches (spillover yield). These are backed by diversified pools of tokenized royalty shares from various merchants, allowing investors to tailor risk and return. **Key Features & Benefits:** * **Direct Royalty Share:** Dividends from clearly defined, auto-segregated merchant revenue. * **Automated & Transparent:** Smart contracts manage the full flow, all on-chain for auditability. * **Merchant Benefits:** Access capital by sharing future revenue, with seamless integration and prompt revenue remittance. * **Accessible Yields:** Opens access to e-commerce profit-sharing yields. **In Essence:** Liquid Royalty Protocol captures e-commerce revenue, tokenizes an agreed royalty share for stablecoin dividends, and returns the rest to merchants. It offers automated growth capital for merchants and real-cash-flow-backed yields for investors. *** # Participants & Roles Liquid Royalty Protocol Ecosystem: Aligning Stakeholders for Transparent, Efficient, and Liquid E-Commerce Financing **1. Overview of Key Participants** The Liquid Royalty protocol is built on a multi-layered structure designed to align the interests of all stakeholders while ensuring regulatory compliance and long-term stability. The core participants include: * **Merchants:** Each Royalty Token represents a portfolio of e‑shops. Merchants remain in control of their day‑to‑day operations and generate revenue; however, they must commit to a [**Performance-Linked Stake**](/introduction/readme-2#performance-linked-stake) (locking 15% of their market cap) as collateral. This stake is gradually unlocked as revenue performance targets are met, ensuring that merchants remain aligned with investor interests. * **Stakers:** Investors who acquire Royalty Token gain direct exposure to the underlying e‑shops' cashflow growth. Additionally, stakers can opt into the platform's **staking product**—a mechanism that holds up to 50% Royalty Token on its balance sheet. Unlike direct royalty-sharing, this staking product is structured as a utility tool (and is not classified as a financial security) while delivering higher, more stable yields, and offering liquidity via decentralized exchanges. * **Liquidity Providers & Market Makers:** These participants supply the necessary liquidity to the [Automated Market Maker (AMM)](/introduction/readme-2#algorithmic-market-maker-amm) pool and ensure smooth, continuous trading of Royalty Token. Their activity keeps spreads tight and the market efficient. * **Credit Assessor:** Credit Assessor conducts due diligence and monitors merchant performance by verifying on‑chain revenue data. * [**DAO Governance Participants**](/introduction/readme-2#dao-decentralized-autonomous-organization)**:** Royalty Token holders engage in decentralized governance via a DAO. They propose and vote on key decisions—ranging from protocol upgrades and treasury allocations to merchant onboarding or delistings—ensuring that the platform evolves in a way that protects investor interests. **2. The Business Hook** By combining direct exposure to e‑shop cashflow with a novel staking product that channels excess yield through our[ **Automated Liquidity Assurance Reserve (ALAR)**](/introduction/readme-2#automated-liquidity-assurance-reserve-alar), Royalty Token transforms traditional private credit models. Investors enjoy the benefits of automated enforcement, transparency, and liquid market access—offering a more efficient, risk‑adjusted alternative to conventional financial intermediaries. # Royalty Token generation quality assurane Scalable Tokenization Framework: Empowering E-Commerce Investment with Secured, Transparent, and Scalable Solutions
The protocol implements a dual-control system over merchant operations: 1. Revenue Control: Integration with programmable banking infrastructure to secure all sales proceeds 2. Store Access Management: Store credentials are encrypted and bound to smart contracts This framework ensures robust investor protection through: * Immutable payment routing * Real-time merchant performance monitoring * Encrypted credential management through blockchain technologies * Smart contract-enforced operational policies Credit Assessor's e-commerce data integration tracks real-time multi-party performance metrics of all merchant stores, this enable Credit Assessor[ ](/introduction/readme-2#qupital)to analyze the following parameters with ease: * **Strong financial track record** - demonstrates high growth in the past 2 years * **Product edge** - Low return rate and low [DIO (days inventory outstanding)](/introduction/readme-2#days-inventory-outstanding-dio) indicates merchant is able to consistently locate high quality products in a highly competitive environment * **Operational edge** - Credit Assessor[ ](/introduction/readme-2#qupital)analyses the full historical record of all the stores to find merchants with an operational excellence, such as merchants who are able to capitalize promotional events (e.g. Black Friday and Christmas) better than their peers * **Perfect repayment history** - merchants that have no history of delinquency * **Data Integrity** - Trustworthy data cross validated by multiple third party sources including ecommerce platforms and payment service providers Royalty Token holders are able to partake in the growth trajectory of the merchant through a secured closed loop royalty sharing system. By transferring the store ownership to the [DAO](/introduction/readme-2#dao-decentralized-autonomous-organization), the merchant is able to raise capital efficiently and cost effectively. # Glossary #### **Adaptive Yield Mechanism (AYM)** A dynamic interest rate model that adjusts staking and liquidity rewards in real-time based on market demand, risk levels, and liquidity conditions. #### **Algorithmic Market Maker (AMM)** A decentralized trading mechanism that uses smart contracts to provide automated liquidity. AMMs replace traditional order books with liquidity pools, allowing for trustless token swaps. #### **API (Application Programming Interface)** An **API (Application Programming Interface)** is a **set of rules and protocols** that allow different software applications to **communicate with each other**. APIs enable systems, applications, or services to exchange data and functionalities without requiring direct user interaction. #### **Automated Market Intelligence (AMI)** A protocol that continuously analyzes on-chain and off-chain data (e.g., sales performance, transaction flows, market sentiment) to optimize investment decisions. #### **Automated Liquidity Assurance Reserve (ALAR)** A decentralized reserve pool that guarantees minimum yields for senior tranche investors. ALAR combines merchant collateral, chain incentives, and stablecoin rewards to stabilize returns and absorb liquidity risks. ALAR buyback or sell token to stabilise prices solely based on the Price-to-Earning ratio (PE), with 8 PE as the target buyback price and 15 PE as the target sell price. #### **Bridge Protocol** A cross-chain solution that enables the transfer of assets, data, and smart contract interactions between different blockchain networks. #### **Collateralized Debt Position (CDP)** A financial instrument where assets (e.g., stablecoins, cryptocurrencies) are locked in a smart contract as collateral to generate loans or liquidity. #### **Cross-Chain Liquidity Aggregation** A mechanism that consolidates liquidity from multiple blockchain networks, improving efficiency and reducing price slippage in decentralized trading. #### **DAO (Decentralized Autonomous Organization)** A blockchain-governed entity where Royalty Token holders vote on protocol decisions (e.g., merchant onboarding, fee adjustments). Proposals are executed via smart contracts, eliminating centralized control while ensuring transparency. #### **Days Inventory Outstanding (DIO)** Days Inventory Outstanding (DIO) is a financial metric that measures the average number of days a company takes to sell its inventory after acquiring it. It is a key indicator of operational efficiency and inventory management, especially for e-commerce businesses and retail operations. #### **Decentralized Finance (DeFi)** A financial ecosystem built on blockchain that eliminates intermediaries (e.g., banks, brokers) by using smart contracts to provide services like lending, borrowing, and trading. #### **Decentralized Governance** Refers to a system of decision-making where **control and authority** are distributed among network participants rather than being concentrated in a central entity. This governance model is commonly used in **blockchain protocols, DAOs (Decentralized Autonomous Organizations), and DeFi projects** to ensure **transparency, fairness, and community-driven evolution**. #### **Decentralized Identity (DID)** A self-sovereign identity framework that allows users to control their digital identity and credentials without relying on centralized entities. #### **Delegated Staking** A mechanism where users stake tokens and delegate their voting power or yield-earning capabilities to a third party, often in exchange for passive rewards. #### **Dynamic Yield Adjustment (DYA)** A protocol mechanism that adjusts yield rates dynamically based on market conditions, liquidity levels, and risk factors. #### **E-commerce payment gateway** global financial technology companies that provides **cross-border payment solutions, multi-currency accounts, and financial infrastructure** for businesses of all sizes. It enables **fast, cost-effective, and seamless international transactions**, eliminating traditional banking inefficiencies. The Protocol use this collect payment for its royalties #### **E-commerce Tokenization** The process of converting e-commerce revenue streams, inventory, or store equity into tradable digital tokens. Enables fractional ownership and liquidity for traditionally illiquid assets. #### **Escrow Smart Contract** A smart contract that holds funds or assets in trust until predefined conditions are met. Used in merchant payments and automated dividend distribution. #### **Impermanent Loss** The temporary loss of funds that liquidity providers experience when the price ratio of paired assets in a liquidity pool changes relative to their original deposit. #### **Key Permission Smart Contract (KPSC)** A proprietary smart contract that binds merchant accounts (e.g., Amazon Seller Central) to blockchain logic. Automatically intercepts 10% of gross revenue at the payment gateway, ensuring tamper-proof dividend enforcement. #### **Layer 2 Scaling Solutions** Blockchain frameworks (e.g., Optimistic Rollups, zk-Rollups) that enhance transaction speed and reduce fees by processing transactions off-chain while maintaining security on the main chain. #### **Liquidity Pool (LP)** A decentralized exchange mechanism where users stake paired tokens (e.g., Royalty Token/USDC) to enable trading. LP providers earn fees and incentives while ensuring market liquidity. #### **Market-Making Bot** An automated trading system that provides liquidity to decentralized exchanges by continuously placing buy and sell orders. #### **Medium-Sized Businesses (SMBs)** **Medium-sized businesses (SMBs)** refer to companies that fall between small and large enterprises in terms of **annual revenue, employee count, and operational scale**. The definition of SMBs varies by **industry and region**, but they are generally characterized by: * **Employee Count**: Typically between **50 and 500 employees** (though thresholds may vary by country). * **Revenue Range**: Annual revenue generally falls between **$10 million and $1 billion**. * **Operational Complexity**: More structured than small businesses but not as resource-intensive as large corporations. * **Growth Potential**: Often in a scaling phase, with expanding market presence and increasing digital adoption. #### **SMBs in the E-Commerce and Blockchain Ecosystem** * **E-commerce SMBs** leverage platforms like **Shopify, Amazon, and WooCommerce** to scale operations without requiring massive upfront capital. * **Blockchain-based SMBs** integrate **DeFi, tokenization, and automated financial processes** to optimize liquidity, streamline payments, and access alternative financing solutions. #### **Merchant Risk Assessment Score (MRAS)** A proprietary scoring model that evaluates e-commerce merchants' risk profiles based on revenue consistency, chargeback rates, and operational history. #### **Multi-Party Computation (MPC) Wallet** A highly secure wallet where multiple parties collaboratively generate and manage cryptographic keys without exposing them to a single point of failure. #### **On-Chain Revenue Streaming** A mechanism that continuously redirects a portion of a merchant's revenue to investors or token holders in real time via smart contracts. #### **Oracle Network** A decentralized system that feeds external real-world data (e.g., asset prices, weather conditions, economic indicators) into smart contracts. #### **Performance-Linked Stake** Collateral (15% of merchant market cap) locked in ALAR. Gradually unlocks as merchants hit revenue targets, aligning merchant incentives with investor returns. #### **Royalty Token** A digital token representing fractional ownership of tokenized e-commerce cash flows. Delivers automated 10% gross revenue dividends via smart contracts and grants governance rights. #### **Protocol-Owned Liquidity (POL)** A liquidity model where the protocol itself owns and manages liquidity pools, ensuring stability and reducing reliance on external LPs. #### **Revenue-Based Financing (RBF)** A funding model where businesses receive capital in exchange for a percentage of future revenue, often structured as tokenized cash flows. #### **Smart Contract Risk Mitigation (SCRM)** A set of automated security measures, including audit trails, kill switches, and fail-safe mechanisms, to prevent vulnerabilities in blockchain contracts. #### **Smart Contract Dividend Wallet** An on-chain, programmatic wallet that automatically collects intercepted merchant revenue, converts it to stablecoins, and distributes dividends to Royalty Token holders. Features: * **Automation**: No manual intervention; payouts occur monthly via immutable code. * **Transparency**: All transactions are logged on-chain for real-time auditing. * **Security**: Funds are custodied in MPC wallets until distribution. #### **Tokenized Revenue Obligation (TRO)** A blockchain-based financial instrument that represents a claim on a predefined portion of a company's future revenue. #### **Tranche** Risk-tiered investment categories: * **Senior Tranche**: Prioritized payouts (11-13% APY), backed by ALAR. * **Junior Tranche**: Higher-risk, variable returns (up to 300% APY), eligible for governance rewards. #### **Yield Farm** A staking product offering tiered returns based on locked Royalty Token or LP tokens. Combines dividends, trading fees, and partner incentives to maximize yields. #### **Zero-Knowledge Proofs (ZKPs)** Cryptographic methods that enable data verification without revealing the underlying information. Used for privacy-preserving financial transactions. # Platform Mechanics Seamless Asset Tokenization, Secure Staking, and Transparent Yield Generation through Decentralized, Automated Financing **1. Asset Onboarding & Tokenization** * **Merchant Registration:** E‑shops join the Liquid Royalty Protocol network by registering on‑chain and integrating with revenue tracking [APIs ](/introduction/readme-2#api-application-programming-interface)from e-commerce platform (i.e. Amazon, Shopify) and payment gateway (i.e Airwallex, Lianlian). Each merchant's performance is transparently recorded to inform yield distributions. * **Performance-Linked Stake:** At listing, merchants are required to lock 15% of their total market capitalization as a [**Performance-Linked Stake**](/introduction/readme-2#performance-linked-stake). This locked amount is held in the **Automated Liquidity Assurance Reserve (**[**ALAR**](/introduction/readme-2#automated-liquidity-assurance-reserve-alar)**)** and is gradually unlocked in installments as the merchant achieves pre‑defined revenue targets. This mechanism not only secures the merchant’s commitment but also acts as a credit enhancement tool for stakers. **2. Funding & Liquidity Pool Structure** * **Pooled Staking Model:** Investors (stakers) contribute Royalty Token to the platform's AMM liquidity pool. Unlike traditional financing, these funds are not allocated directly to any merchant; rather, they are managed algorithmically by smart contracts. This structure protects investor capital by eliminating direct exposure to merchant operations while still allowing stakers to benefit from the underlying e‑shop cashflows. * [**ALAR** ](/introduction/readme-2#automated-liquidity-assurance-reserve-alar)**Backing:** The funds locked via the Performance‑Linked Stake, combined with chain partner incentives and stablecoin incentives (e.g., rewards from the use of Ethena USDe), form the **Automated Liquidity Assurance Reserve (**[**ALAR**](/introduction/readme-2#automated-liquidity-assurance-reserve-alar)**)**. [ALAR ](/introduction/readme-2#automated-liquidity-assurance-reserve-alar)ensures that the most conservative investment tier—the Super Senior Tranche—receives a fixed yield of at least 11% annually, thereby underpinning investor confidence with a robust yield floor. **3. Yield Generation & Distribution** * **Multi-Source Yield:** Staking rewards are generated through three primary channels: * [**AMM** ](/introduction/readme-2#automated-market-intelligence-ami)**Trading Activity:** Swap fees from on‑chain trading contribute to the yield. * **NAV Growth:** As the value of the pooled assets appreciates, stakers share in this upside. * [**ALAR** ](/introduction/readme-2#automated-liquidity-assurance-reserve-alar)**Incentives:** Bonus rewards from [ALAR](/introduction/readme-2#automated-liquidity-assurance-reserve-alar)—including chain and stablecoin (USDe) incentives, plus gradual unlocking of merchant Performance‑Linked Stakes—boost overall yields. * [**Tranche** ](/introduction/readme-2#tranche)**Structure:** The staking pool is segmented into 2 risk tiers: * **Senior** [**Tranche**](/introduction/readme-2#tranche)**:** Offers a fixed minimum yield of 11% per annum, guaranteed by [ALAR](/introduction/readme-2#automated-liquidity-assurance-reserve-alar). * **Junior** [**Tranche**](/introduction/readme-2#tranche)**:** Exposes stakers to higher risk in exchange for variable, potentially higher returns, and enhanced governance rewards. * **Redemption & Exit:** Standard unstaking is available after the lock-up period. To deter short‑term dividend farming, early unstaking (within one week) incurs an urgent liquidation fee of 20% on the unstaked amount. **4. The Business Hook** By automating revenue capture and aligning incentives through [ALAR ](/introduction/readme-2#automated-liquidity-assurance-reserve-alar)and the Performance‑Linked Stake, Royalty Token redefines asset financing. It replaces traditional, opaque financing models with a fully transparent, decentralized process that ensures robust yield—even in volatile market conditions—while offering liquidity and ease of exit on decentralized exchanges. # Bridging the Liquidity Gap with Blockchain Mechanisms Using Blockchain-Powered Mechanisms to Empower SMBs and Investors The traditional financial system struggles to provide efficient, transparent, and liquid financing solutions for small and [medium-sized businesses (SMBs)](/introduction/readme-2#medium-sized-businesses-smbs) in e-commerce. Despite their predictable revenue streams, these businesses face high costs, slow approval processes, and limited access to institutional-grade capital. Investors, on the other hand, encounter illiquid markets and opaque financial structures, making it difficult to manage risk and optimize returns. The Liquid Royalty Protocol overcomes these challenges by leveraging four key blockchain-powered mechanisms that redefine how e-commerce revenue is tokenized, distributed, and traded. These include: * **Adaptive Yield Mechanism (AYM)** – A dynamic system that optimizes investment returns by adjusting yield rates based on liquidity conditions and risk factors. * **Automated Market Intelligence (AMI)** – A real-time analytics engine that enhances transparency by continuously monitoring merchant revenue, investment performance, and market trends. * **Automated Market Maker (AMM)** – A liquidity solution that allows Royalty Token holders to trade tokenized revenue streams seamlessly, eliminating the **capital lock-in problem** of traditional private credit markets. * **Automated Liquidity Assurance Reserve (ALAR)** – A decentralized reserve that stabilizes yields for investors and mitigates liquidity risks, ensuring reliable returns for senior tranche participants. #### **1.** [**Adaptive Yield Mechanism**](/introduction/readme-2#adaptive-yield-mechanism-aym) **(AYM) → Solving Inefficiency in Financing** One of the **key inefficiencies** in traditional financing is the **slow decision-making process and high fees** involved in obtaining funds. AYM addresses this issue by dynamically adjusting yield rates based on market conditions, liquidity supply, and risk factors. * Relation to Liquid Royalty Protocol: * The Liquid Royalty Protocol could integrate an AYM to ensure that returns are optimized based on liquidity demand. * This would allow investors to adjust their risk exposure dynamically rather than being locked into rigid financial structures. * Unlike private credit, where returns are fixed and inflexible, AYM in Liquid Royalty Protocol can adjust APYs in real-time, making financing more efficient. #### **2.** [**Automated Market Intelligence**](/introduction/readme-2#automated-market-intelligence-ami) **(AMI) → Enhancing Transparency** A major problem in traditional financing is the **lack of real-time reporting and transparency** in private credit markets. AMI solves this by continuously analyzing on-chain and off-chain data. * Relation to Liquid Royalty Protocol: * The **Liquid Royalty Protocol ecosystem** can use **AMI** to provide **real-time risk assessments and market data**. * Investors can **track performance transparently** and make informed decisions based on **automated intelligence rather than opaque reports**. * Unlike traditional financing, where investors must **wait for quarterly reports**, **AMI allows instant, on-chain auditing** of e-commerce cash flows. #### **3.** [**Automated Market Maker**](/introduction/readme-2#automated-market-intelligence-ami) **(AMM) → Solving Illiquidity** One of the main deterrents for investors in private credit markets is illiquidity—capital is locked up for years, and there are few exit opportunities. AMMs solve this by providing continuous liquidity for tokenized assets. * Relation to Liquid Royalty Protocol: * Liquid Royalty Protocol can be traded on an AMM-based liquidity pool, ensuring that investors can enter or exit positions without long lock-up periods. * Instead of waiting months or years to access funds, investors can swap Royalty Token for stablecoins (USDC) instantly, improving liquidity. * This eliminates the rigid lock-in problem found in traditional financing, making tokenized e-commerce revenue streams more liquid and accessible. #### **4.** [**Automated Liquidity Assurance Reserve**](/introduction/readme-2#automated-liquidity-assurance-reserve-alar) **(ALAR) → Providing Institutional-Grade Stability** A key concern for both SMBs and investors in traditional financing is financial stability and risk mitigation. ALAR functions as a decentralized liquidity reserve that absorbs market shocks and guarantees minimum yields for investors. * Relation to Liquid Royalty Protocol: * ALAR ensures that senior tranche investors receive stable returns (8–11% APY) even in volatile market conditions. * For SMBs, this means more predictable funding, reducing the uncertainty associated with traditional credit lines. * For investors, it offers institutional-grade yield stability without the counterparty risks of centralized financial institutions. By integrating these four blockchain-powered mechanisms, the Liquid Royalty Protocol creates a financial ecosystem that is more efficient, transparent, liquid, and stable than traditional private credit markets. This approach not only unlocks institutional-grade yields for investors but also empowers SMBs to access capital in a way that was previously inaccessible, slow, and inefficient in the traditional financial landscape # Dividend Mechanism Dividend Mechanism: Liquid Royalty Protocol - Automated, Transparent, and Investor-Centric Distribution LiquidRoyalty Protocol intercepts 10% of the merchant's revenue, convert to stablecoin and airdrop to royalty token holders:

monthly fund flow

LiquidRoyalty Protocol deploys an audited stablecoin aircontract that is published by Thirdweb, as contract owner LiquidRoyalty Protocol charges 0.1% of dividend distributed. # Token Overview Diverse Token Types and Yield Streams Designed for Flexible Investment Strategies There are 3 types of Royalty Token at initial offering: 1. **Unlocked Royalty Token** - pre-sale tokens that are immediately liquid 2. **Locked LP Tokens** - enable more Royalty Token circulation through swapping against Stablecoins 3. **Locked Royalty Token** - Tokens that are vested based on time and shop performance LP tokens based on Royalty Token allow additional yield types to be collected by liquidity providers, including: * Royalty Token principal growth and monthly dividend * Liquidity pool trading fees * Partnership incentives, including: * Stablecoin partnership incentives * Brokerage partnership incentives * Chain partner incentives

Types of yield from Royalty Token liquidity pools

The variety of yield allow LP token yield to be more diversified and less susceptible to impermanent loss (market making inventory loss). Referencing traditional structured products, the yield is further allocated to 2 **distinct yield farms tranches** to suit different risk appetites of LP investors. # Use Cases / Examples Unlocking Liquidity and Yield Potential: Streamlined Investment and Optimized Return Strategies **1. Royalty Token as a Primary Market Investment Tool** * **Mimicking an IPO:** Upon approval by Originators, merchants can access **up to 10% equity financing at a 10 P/E ratio** through subscribers across **Exchanges, Asset Originator, and DeFi LaunchPads**. * **Rapid Listing vs. Traditional IPOs:** Royalty Token offers listing within weeks instead of 2+ years, avoiding inefficient processes like roadshows and underwriter fees. **2. Investor Yield Optimization Strategies** * **Diversified Exposure:** Stakers access multiple risk tranches. * **Regulated & DeFi Options:** Investors can operate in compliance markets (licensed exchanges) or opt for **self-custody liquidity management in DeFi**. # Token Vesting Performance-Driven Vesting: Ensuring Alignment and Sustainable Growth for Merchants and Investors Initially only 10% of the Royalty Token are sold in pre-sale and 10% Royalty Token are locked in liquidity pool. The below illustrates how the remaining tokens will become unlocked.
For merchants, unlocking their tokens is tied directly to business performance. This vesting mechanism ensures that the merchants' interests align with Royalty Token holders: **Growth-Based Unlocking** Revenue growth target * Annual performance reviews using platform data oracle, measured at each anniversary of initial offering * Each review can trigger token transitions from locked to LP staked status **Unlocking Process** 1. (Stage One) Locked → LP Staked * When growth targets are met, tokens move to LP staking * Royalty Token are automatically sold to create matching LP pair * Merchants are not able to redeem LP until Stage Two is reached 2. (Stage Two) LP Staked → Liquid * Only occurs when LP size exceeds 30% of circulating Royalty Token supply * Excess LP tokens unlock every 3 months This mechanism ensures: * Merchants stay committed to growth * Market stability through adequate liquidity to protect against selling pressure * Gradual token distribution based on performance Asset originator is also subject to the same vesting requirements. # Vaults LiquidRoyalty RWA Vaults

Yield Farming Tranches

LiquidRoyalty currently offers 3 ERC-4626 compliant Vaults: 1. **🏦 Senior Tranche (snrUSD) - Monthly Rebalancing** * **For:** The conservative investor. * **Profile:** You prioritize capital preservation and a predictable, stablecoin-denominated return. * **How it Works:** Your yield is **guaranteed** by the ALAR vault, offering a fixed APY of 11-13%—the highest priority payout in the ecosystem. * **Yield Payout Method:** Yield is paid in form of more snrUSD (11-13% APY equivalent) airdropped to snrUSD holders during rebalance, purpose is to preserve ability to integrate with other DeFi protocols (e.g. DEX, Lending). * Yield Spillover only happens when total assets in the vault is over 110% of snrUSD circulation * **Cooldown**: User can withdraw USDe 7 days after initiating cooldown, snrUSD in cooldown WILL NOT receive yield airdrops * **Only users with snrUSD balance more than 0.01** will receive monthly airdrop distribution 2. **⚡ Junior Tranche (JNR) - Liquid Staking** * **For:** The growth-oriented investor. * **Profile:** You are comfortable with higher volatility for a significantly amplified return. * **How it Works:** You capture **80% of all yield generated above the Senior Tranche's guarantee**, offering uncapped upside potential, spillover happens during rebalance. * **Yield Payout Method:** Through JNR share price appreciation. * **Cooldown**: User can withdraw USDe 7 days after initiating cooldown, JNR:USDe rate is based on the time of cooldown initiation. 3. **🛡️ ALAR (ALAR) - Liquid Staking** * **For:** The long-term ecosystem believer. * **Profile:** You are invested in the protocol's health and sustainability. * **How it Works:** ALAR stakers receive **20% of the excess yield**, which directly funds the Senior guarantee, ensuring its long-term reliability and creating a virtuous cycle of growth**Fees** * **Yield Payout method:** spillover happens during rebalance. * **Cooldown**: User can withdraw USDe 7 days after initiating cooldown, ALAR:USDe rate is based on the time of cooldown initiation. # Governance & Token Economics Governance, Token Utility, and Fee Models: A Comprehensive Approach to Decentralized Ecosystem & Investor Benefits **1. Governance Model** * **Decentralized Oversight:** The Royalty Token ecosystem is governed by a [DAO ](/introduction/readme-2#dao-decentralized-autonomous-organization)that empowers Royalty Token holders (including stakers) to vote on protocol matters. This decentralized model ensures that strategic decisions—such as treasury allocations, merchant performance thresholds, and fee adjustments—are made collectively, reflecting the broad interests of the community. * **Voting Mechanics:** Proposals require a minimum quorum (e.g., 15% of staked governance power) and must achieve at least 60% approval to pass. This structure prevents small factions from imposing changes unilaterally and maintains stability across the platform. **2. Royalty Token Utility & Exposure** * **Direct Exposure to E‑Shop Cashflows:** Each Royalty Token is directly tied to a portfolio of e‑shops, meaning that Royalty Token holders gain exposure to the underlying cashflow growth of these businesses. This creates an attractive, yield‑generating asset class that mirrors the performance of real‑world revenue. * **Staking Product as a Regulatory Buffer:** Although Royalty Token themselves may be classified as securities, the staking product—where investors lock their tokens into the AMM pool—has been designed (and reviewed by legal experts) to avoid such classification. By converting direct revenue claims into performance‑based staking rewards, the product offers superior investor experience: * **Higher and More Stable Yields:** With yields backed by [ALAR ](/introduction/readme-2#automated-liquidity-assurance-reserve-alar)and the Performance‑Linked Stake, investors enjoy competitive returns. * **Enhanced Liquidity:** Staked assets can be traded on decentralized exchanges with real‑time price reference. * **Regulatory Compliance:** Leveraging our network of TradFi partners, the platform adheres to full compliance infrastructure across multiple jurisdictions. * **Utility Functions:** Beyond staking, Royalty Token serve multiple roles: * **Governance:** Token holders vote on protocol changes and strategic decisions. * **Fee Benefits:** Holders may receive fee reductions and bonus incentives. * **Network Participation:** The token is central to all economic activity within the platform. **3. Platform Fee Model** The platform's fee model is designed to align incentives and ensure long‑term commitment: * **Performance-Linked Stake:** Merchants must lock up 15% of their market cap as a Performance‑Linked Stake. These funds are held in [ALAR ](/introduction/readme-2#automated-liquidity-assurance-reserve-alar)and are gradually unlocked as revenue targets are met. This mechanism not only secures merchant commitment but also enhances yield for stakers by backing the Super Senior Tranche. * **Management & Carry Fees:** The platform charges a 1% management fee and a 2% performance‑based carry fee—applied only if stakers are profitable over their staking period. This fee structure ensures that fees are collected solely when the platform delivers positive returns, mirroring best practices in private credit while maintaining transparency. * **Urgent Liquidation Fee:** To discourage opportunistic short‑term staking solely for dividend capture, any unstaking within the first week incurs a 20% penalty fee. This fee safeguards the liquidity pool by ensuring participants remain committed for a meaningful period. * **Spillover & ALAR Protection Mechanism:** 20% of spillover from senior to junior tranche flows to [ALAR](/introduction/readme-2#automated-liquidity-assurance-reserve-alar). When ALAR covers the 11% senior tranche guarantee, junior tranche participants face an additional 1-month lock-up (or pay the 20% urgent liquidation fee to unstake early). **4. The Business Hook** By combining direct exposure to e‑shop cashflow with a sophisticated staking product, Royalty Token not only automates away traditional inefficiencies but also redistributes the financial incentives typically captured by intermediaries directly to investors. The integrated fee model—anchored by the Performance‑Linked Stake and bolstered by [ALAR](/introduction/readme-2#automated-liquidity-assurance-reserve-alar)—ensures that all parties are aligned for long‑term growth. Meanwhile, our partnerships (e.g., DigiFT in Singapore) guarantee that the primary market is served in full compliance with global regulatory standards, paving the way for seamless listings and cross‑chain trading. # Risk Management & Compliance Safeguarding the Royalty Token Ecosystem with Proactive Security and Credit Risk Strategies 1. **Overview of Risk Management Strategy** 1. Liquid Royalty Protocol manages two primary risk categories: 1. **Credit Risk:** The potential failure of e-shops to meet revenue targets. 2. **Platform Security Risks:** Smart contract vulnerabilities, systemic liquidity issues, and governance risks. 2. **Credit Risk Mitigation** 1. **Performance-Linked Stake:** Every merchant listing is backed by a locked 15% of market cap in [ALAR](/introduction/readme-2#automated-liquidity-assurance-reserve-alar), ensuring incentive alignment. 2. **Risk Analytics:** Leverages API-driven financial data from e-commerce merchants to assess underwriting quality. 3. **Revenue Interception Model:** Liquid Royalty Protocol's smart contracts directly enforce a 10% gross revenue share, preventing underreporting. 3. **Platform Security & Smart Contract Protections** 1. **Audited Smart Contracts:** All protocol contracts undergo independent security audits. 2. **Multi-Sig & Governance Security:** Critical treasury decisions require [DAO ](/introduction/readme-2#dao-decentralized-autonomous-organization)approval. 3. **Regulatory Insurance Protection:** Royalty Token holders benefit from **regulated exchange partner insurance mechanisms** in jurisdictions where applicable. 4. **Price Stabilising Mechanism** Market sentiment can sometimes lead to irrational fluctuations in token prices, deviating from their fair value. To maintain price stability and respond to such market behavior, Royalty Token implements the following strategies through the ALAR mechanism: * **Addressing Overselling Pressure (Price Support):** When irrational selling occurs in the market, causing the token's valuation to fall below a Price-to-Earnings (PE) ratio of 8 (indicating potential undervaluation), [ALAR](/introduction/readme-2#automated-liquidity-assurance-reserve-alar) will proactively buy back tokens. This action aims to provide price support by injecting purchasing power and reducing the number of tokens circulating in the market, thereby preventing further irrational declines and guiding the price back towards a reasonable valuation. * **Addressing Overbuying Pressure (Price Regulation):** Conversely, when irrational exuberance occurs in the market, causing the token's valuation to exceed a PE ratio of 15 (indicating potential overvaluation), ALAR will sell tokens. This action, by increasing the token supply in the market, aims to curb irrational market overheating, encourage the price to correct to a more sustainable level, and thus prevent potential bubble risks. # Roadmap & Future Outlook Roadmap & Future Outlook: Expanding Global Reach and Strengthening DeFi Liquidity **1. Expanding Regulatory Partnerships** * **Targeting one licensed exchange per major jurisdiction** (Korea, Japan, Taiwan, Hong Kong, Europe) for enhanced compliance distribution. * **Stablecoin Partner Expansion:** Working with partners like Ethena USDe to deepen liquidity access for on-chain settlement. **2. Strengthening DeFi Market Liquidity** * **More Chain Integrations & LaunchPad Partners** to drive decentralized adoption. * **Enhancing AMM Efficiency for Royalty Token Trading**, improving capital efficiency across DeFi. # DAO Overview Reclaiming Value for Real World Asset Investors Traditional equity offerings drain investor value through multiple layers of fees:
Up to USD 2,500,000 is lost before trading begins, plus the lengthy application process and regulatory overhead, with no guarantee of success. In contrast, Royalty Token DAO disrupts this model with the following:
ItemProblemOur Alternative
Investment BankingExpensive. Not aligned with long term investor and company interests. Often incur additional selling pressure post-IPO, inflicting losses on investors.Performance-based vesting for financial intermediaries.
Market MakerHigh fee and high spreadAutomated market-maker
Legal and AuditExpensive and slowReal time validated data oracle and smart contract based enforcement
Exchange and InfrastructureHigh listing fee, barrier and regulatory overheadBlockchain partnerships and DEXs
The value reclaimed is redistributed back to stakeholders of the DAO, this creates a fairer, more efficient market where investors capture the value traditionally lost to intermediaries. # Governance A Balanced Ecosystem of Aligned Interests Participants in the DAO contribute differently based on their roles, creating a balanced ecosystem of aligned interests: **Merchants** Store owners pledge both online and offline assets as collateral for raising immediate capital through Royalty Token. Must hit growth targets to unlock more tokens, ensuring long-term commitment to success. **Token Holders** Provide capital through token purchases and receive dividends generated from stores. Hold voting rights on critical operations including store delisting, M\&A, and emergency measures. **Brokerages** Drive market activity and promote Royalty Token. **Admin Trustee**\ Monitoring of financials and verifying of growth targets. Conduct due diligence to maintain high-quality Royalty Token-backed assets. Admin trustee proposes votes based on requests from Merchants and Token Holders and manages offline collateral for the DAO. Receives vested tokens tied to growth targets. Maintain protection treasury to absorb LP losses and align with ecosystem growth. **Collateral** Both online (cryptocurrencies, Web2 credentials) collateral pledged by merchants is governed by the DAO, with the **Admin Trustee** as executor. # Collaterals Real-Time Monitoring and Adaptive Action The data integration tracks several live metrics of the stores, including but not limited to: * Sales amount * Refund ratio * Days inventory outstanding (DIO) * Inventory value Based on the live metrics, operator can act on the collateral very quickly, collateral includes: * Store credentials * Merchant crypto assets * Physical inventory, executed by Admin Trustee through traditional legal framework # M\&A
M\&A activities create substantial value for the Royalty Token ecosystem. Merchants, by acquiring additional shops at less than 10x PE but trading at a 10x PE market valuation themselves, each acquisition immediately generates value for token holders. Merchants can fund these acquisitions through either cash payment or vested Royalty Token shares, enabling efficient ecosystem expansion without requiring immediate capital. # Conclusion Royalty Token: The Future of Institutional Investment in E-Commerce and DeFi **1. Royalty Token as a New Institutional Asset Class** * **Appealing to Fund Managers & LPs:** Royalty Token enables direct exposure to e-commerce growth while offering **institutional-grade yield**. * **Efficiency Over Traditional IPOs:** Faster, more liquid, and globally accessible, making it a superior alternative. **2. Institutional Call to Action** * **For Investment Firms & Exchanges:** Royalty Token represents the next evolution in structured finance, providing a bridge between **tradfi investor trust and DeFi automation**. # Royalty Token Royalty Tokens by default are **10% Royalty Tokens**, which means for every $10 sales a shop made, $1 will be tokenized and distributed to royalty token holders via Airdrop. At each RTGE (Royalty Token Generation Event), it doesn't affect day-to-day operations of the merchants, but they are required to follow a **Low float High FDV** model with most of their tokens (74%) locked in a **Performance-Linked Stake,** and 10% of FDV are used to seed initial liquidity**.** Only if merchants hit their annual growth target (100%) a small portion of 10% is unlocked. Royalty token holders will receive daily airdrops, and snapshot is taken daily shortly before the airdrop happens. Dividend deposits are done on a weekly basis - specifically every monday. ## Royalty Tokens List * SAIL.r (Berachain) * Address: [0x59a61b8d3064a51a95a5d6393c03e2152b1a2770](https://berascan.com/address/0x59a61b8d3064a51a95a5d6393c03e2152b1a2770) # Base | Ethereum | Arbitrum | Polygon 1-Click Cross-chain Swap LiquidRoyalty supports cross-chain swaps from Base, Ethereum, Arbitrum or Polygon to SAIL.r (Berachain) with our cross-chain swap integration. For example if you want to buy SAIL.r, [visit the token page](https://www.liquidroyalty.com/invest/sail) in LiquidRoyalty
Currently supported assets: * Ethena USDe * Base * Ethereum * Arbitrum * Polygon * Circle USDC * Base * Ethereum * Arbitrum * Polygon # Berachain Native Quickest and Cheapest way to access Royalty Tokens Royalty Tokens are berachain native, swapping on berachain provides almost instant swap and very low gas fees.
The most direct and cost-effective method to acquire Royalty Token like SAIL.r on Berachain is to swap USDe for it, as a liquidity pool already exists for SAIL.r / USDe pair To obtain USDe (berachain), there are 2 options available: ### Option 1 - Bridging on [liquidroyalty.com/bridge](https://www.liquidroyalty.com/bridge)
### Option 2 - Berachain's [native bridge](https://bridge.berachain.com/bridge/token):
# Kodiak Finance LiquidRoyalty uses Kodiak Finance to create liquidity pools, users who are familliar with Kodiak can directly swap on [Kodiak](https://app.kodiak.finance/#/swap?chain=berachain_mainnet\&inputCurrency=0x5d3a1Ff2b6BAb83b63cd9AD0787074081a52ef34\&outputCurrency=0x59a61B8d3064A51a95a5D6393c03e2152b1a2770) without going through LiquidRoyalty, simply connect wallet in this [link ](https://app.kodiak.finance/#/swap?chain=berachain_mainnet\&inputCurrency=0x5d3a1Ff2b6BAb83b63cd9AD0787074081a52ef34\&outputCurrency=0x59a61B8d3064A51a95a5D6393c03e2152b1a2770)then perform swap directly
# CEX - Binance, OKX, Coinbase Buying Royalty Tokens, starting from Centralised Exchanges This guide is for you if: * You don't own a cold wallet, and you think storing seed phrase is too much hassle * You own a CEX account such as Binance, OKX, Coinbase ## 1. Create an account Nobody likes storing seed phrases, click "Connect Wallet" in [liquidroyalty.com](https://liquidroyalty.com), and select one of the options to create an account - these options allow you to create an account just with email / X / github etc.
## 2. Withdraw USDC from CEX to your connected account All top CEXs support USDC, withdraw USDC from any CEX to your account created in Step 1
Any of the chains below will allow you to swap to royalty tokens easily: * Base * Ethereum * Arbitrum * Polygon * Berachain Depends on the choice of chain, you can now buy Royalty Tokens by following one of the guides: For Base | Ethereum | Arbitrum | Polygon {% content-ref url="/spaces/csc5wbONKMuHeGeM8UqE/pages/EnwSs3RQBoohKyYUeP1d" %} [Base | Ethereum | Arbitrum | Polygon](/quick-start/royalty-token/base-or-ethereum-or-arbitrum-or-polygon) {% endcontent-ref %} For Berachain {% content-ref url="/spaces/csc5wbONKMuHeGeM8UqE/pages/7ENrpwgumqMz8wWfd6Dd" %} [Berachain Native](/quick-start/royalty-token/berachain-native) {% endcontent-ref %} Note: Depending on the chain, you need to acquire the appropriate gas token to complete transactions, e.g. BERA on Berachain, ETH on Base/Ethereum/Arbitrum, POL on Polygon # Berachain Why do we think berachain is our perfect partner
Berachain's innovative Proof-of-Liquidity (PoL) model aligns very well with Liquid Royalty's **Low float High FDV** design with initial liquidity seeding: At RTGE, pre-sale investors (10%) are locked up over 2 years, leaving only the liquidity seeded (10%) on Kodiak ([kodiak.finance](https://www.kodiak.finance/)) as the circulating float. Royalty token is tradeable from day 1 with 24/7 liquidity, providing an active market price for merchant lockups, giving merchants both visibility and strong incentive to meet aggressive performance metrics (**commit to perform**). Merchant hit performance metrics, more real world royalty cashflow are tokenized on chain and fed into the PoL system, attracting deeper liquidity and strengthening the premium. This creates a flywheel where everyone wins: * **Merchant** shops gain a liquid market reference plus a performance-linked stake - **more committed to perform** * **Tokenholders** gains access to high-growth, incentive-aligned cashflows with deep liquidity powered by PoL * **Berachain validators** secure a pipeline of PoL incentives that are non-BERA denominated and backed by high-growth, real-world businesses Berachain builds businesses. # Ethena USDe LiquidRoyalty primarily uses Ethena USDe () for seeding initial liquidity at each RTGE. In addition to the impressive TVL and reputation, USDe is providing yield rebate which will be directed as PoL incentives, boosting APY% of Royalty Token liquidity pools. USDe does not have much liquidity on berachain, to acquire USDe, swap on Ethereum via a DEX (e.g. app.uniswap.com) then bridge to Berachain on # E-commerce Lender Our protocol partners with established, data-driven lenders who have a proven track record in the e-commerce financing space. These partners bring a curated network of high-performing online merchants and sophisticated risk management practices to the ecosystem. The strength of our lending partners is demonstrated by their historical performance. For instance, a local Hong Kong lender, **Qupital**, has funded over $6 billion in merchandise with a remarkably low default rate of 0.1% across eight years of operation. This level of performance is achieved through a multi-layered approach: * **Real-Time Business Monitoring:** Merchants connect their online shop APIs directly to our lending partners. This allows for real-time, transparent monitoring of sales performance, enabling dynamic and data-informed lending decisions. * **Access to High-Growth Segments:** Our network specializes in high-velocity e-commerce segments, particularly Chinese cross-border merchants, many of whom consistently achieve 50-100% year-on-year growth. * **Direct Cash Flow Control:** Through integrations with leading Payment Service Providers (e.g., Airwallex, Lianlian), our lending partners can effectively manage and secure cash flows, significantly de-risking the financing provided. **Tokenizing Top-Tier E-Commerce Performance** The protocol tokenize these vetted businesses into Royalty Tokens. This process provides merchants with a novel form of non-dilutive growth capital and distributes real, revenue-generated yields to token holders. # Credits **Lead Author:** [Bryan Yau](https://x.com/YauBryan4475) **Co-Author:** [Alan Tsang](https://x.com/alan_pkmt), [Santiago Márquez Solís](https://santiagomarquezsolis.com/) **Stratosphere Labs**: [Stratosphere Network](https://x.com/strato_hk)\ Tecgrity RWA: