Decoswap Resources
RWA Valuation
Valuation is a part of the process in which the NFT owner will upload documents confirming a value. An important part of the Decoswap design is these documents are only used in a market microstructure model of Glosten and Milgrom and not the more general market. So the valuation documents are used to secure a stake in the RWA valuation which is never at risk. It is locked into a layer and that is then used as a reserve for a new stablecoin. Documents can vary, and Letter of Credit is an example of how documents are used today.
A document or set of documents is uploaded and these are attached to the RWA NFT.
Here is an example of a Letter of Credit document
A bounty system is offered to combat fraud. So if a false valuation is entered (e.g.the liquidity provider and the RWA owner could be the same person to defraud DECO coins), then a fraud period operates allowing bounty hunters to detect fraud and then the fees paid by the RWA lister will be forfeited. If fraud is challenge then arbitration can be used with the parties paying their own fees. But usually when fraud is detected, fraudsters will just disappear.
Agents: To filter down unreliable valuations, and agency system can be used with agents having reputations. Hence the actual RWA listings and the valuations are done by agents. This will provide from credibility to the valuation process. Liquidity providers are never at risk as funds are not spent (DECO tokens are minted only), but this will help only valid DECO tokens being minted. Agents would be paid via the RWA listing fees from the RWA owners.