On-chain Real World Asset Earn Accounts

BoF provides access to on-chain Real World Assets such as US Treasury Bonds. All our Real World Asset Earn Accounts are backed 1:1 with the underlying asset.

Using BoF's own novel technology we have structured our Real World Asset Earn Accounts in a way that provides Users with instant liquidity, up to the total amount of USDC reserves available at any point in time.

Each of these Real World Asset Earn Accounts has a Vault Contract Address and a Strategy Contract Address.

What is a Vault Contact and what is its purpose?

A Vault Contract is Smart Contract that acts as a "vault" and is where users deposit their funds into which are then automatically deployed into the Strategy Contract. In the case of the Real World Asset Vault Contract, a portion of funds are held back in the Vault Contract to act as "reserves" to facilitate instant Withdrawals and Transfers.

What is a Strategy Contact and what is its purpose?

A Strategy Contract is a smart contract that controls when, how and where funds are deployed in order to generate yield.

A simple overview how our DeFi Earn Accounts work

When Users hit deposit, funds are first directed into the Vault Contract and in return Users receive a share of this vault that represents their position within that particular Earn Account.

The Vault Contract then automatically transfers a predefined percentage of those funds to the Strategy Contract. A portion of funds remain in this Vault Contract to facilitate instant Withdrawals and Transfers up to the reserves value. Occasionally, depending on the status of the Strategy Contract, USDC reserves may move between the Vault Contract and Strategy Contract. The Strategy Contract then deploys the funds to purchase Real World Assets. In order to do this, funds are converted to USD by our partner to settle purchases with a Traditional Finance broker. Assets purchased via this broker are then placed in Custody with a third party custodian. This process currently uses Volksbank in Germany as the Custodian of the assets. Once this process has been undertaken then a tokenized security is issued that represents the assets held 1:1 in custody and sent to the Strategy Contract.

Note: The Value of the USDC sitting in the Vault Contract and Strategy Contract make up the Reserves balance.

It’s important to note that BoF does NOT have access to users funds. BoF only has the ability to call a function that withdraws funds from the Strategy Contract (in the event of an emergency) which automatically transfers funds back to the Vault Contract for users to then safely withdraw from at their convenience