Decoswap has several key components as follows:

• RWA Tokenization: The RWA is tokenization into a NFT. There is no fractional ownership. There is one NFT for one RWA. It would be possible to add fractional ownership and a DAO but that would not change the final NFT being minted. It would just mean that NFT would have a lot of children NFTs in a nested structure.
• USDC Liquidity Pool: Liquidity Providers add USDC into a pool where it is time-locked. That USDC is then allocated to RWA staking offers but the USDC is never spent. RWA owners get DECO stablecoins.
• RWA NFT USDC Vault: When staking is done, the RWA NFT is locked into a vault for a time period with USDC from the liquidity pool, the liquidity provider makes the decision to move their USDC into the vault. This triggers DECO stablecoins for the RWA owner which are repaid later to get back the NFT.
• Staked USDC/USDC Vault: The RWA staking does not solve the liquidity problem for liquidity providers and all that happens is illiquidity is transferred from the RWA to the USDC owner. This illiquidity problem is solved by creating a new pool for staked USDC. The USDC held in the RWA NFT USDC Vault is transferred into a new pool and then stUSDC staked USDC is minted (these are then transferred to the original USDC liquidity provider). The transferred USDC is time locked for the original duration of the RWA locking and the benefits from the fees (paid in advance) and then paid into the new pool. The owners of the staked USDC can then trade them via a DEX (Decoswap). One the RWA is unlocked, the USDC is also unlocked. This allows a one to one conversion for staked USDC (i.e. stUSDC is burned when deposited and USDC given). This is needed to provide protection but also a DEX is needed for liquidity. Otherwise there would be no liquidity since the DEX uses an AMM.
• DEX Liquidity Pool: This has stUSDC and USDC for AMM trade. This is a stableswap trade
• AMM: The automated market maker trades a normal constant function market maker for stUSDC and USDC and always guarantees liquidity. This design is to ensure that USDC liquidity pool always have a liquidity option when vested into a RWA NFT so they can recover USDC if needed before the time locked period is up.

After the staking period has expired, the liquidity provider (supplier of the stake) can redeem it from the pool. This will triggerall the stakes to be returned to the USDC Liquidity Pool. This also allows the RWA NFT itself to be redeemed by the RWA NFT owner.