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Transparency, Stablecoin, Yields

R2 Protocol is tackling RWA concentration risk by aggregating multiple institutional asset managers, offering users a single, transparent vault for diversified and verifiable exposure to tokenized Treasurys and private credit.

The real-world asset (RWA) narrative has become a cornerstone of the current decentralized finance (DeFi) phase. Yet, as users seek sustainable real-world yield, they face platforms that are opaque about their yield sources or are dependent on a single asset issuer, creating concentration risk.

R2 Protocol, an onchain yield infrastructure, is addressing this challenge by aggregating multiple tokenized RWA providers into a single, transparent layer. The protocol connects stablecoin liquidity from DeFi users directly to a diversified portfolio of tokenized US Treasurys and institutional credit strategies. Users can deposit USDC (USDC) through R2’s smart contracts to gain direct exposure to these yield-generating real-world assets.

An aggregation layer for real-world yield

The protocol’s infrastructure is built on a composable structure using different vaults. The primary sR2USD Vault allocates assets across all of R2’s integrated partners. More focused options are also available, such as a T-Bills Vault (backed by tokenized US Treasurys from issuers like VanEck and BlackRock) and a Private Credit Vault (backed by strategies from institutions like Apollo and Fasanara Capital).

The flow of funds is designed for transparency. Users first supply USDC through R2’s decentralized application (DApp). Smart contracts then automatically route the funds into approved yield products managed by whitelisted institutional asset managers.

The underlying assets, such as tokenized T-Bills and private credit funds, then generate yield. Finally, these yields are distributed to the vault depositors every 90 days. The system is built for flexibility, offering users options for both daily liquidity (via a fast-exit channel) and scheduled liquidity through queued redemptions.

Diversified and transparent pipeline

A core component of R2’s infrastructure is its diversified asset pipeline, which includes more than ten verified institutional asset managers. This aggregation model is intended to mitigate the risks associated with single-issuer platforms.

The list of integrated partners includes Securitize, which facilitates access to tokenized private credit from Apollo (Apollo Acred) and tokenized T-Bills from VanEck (V-bill). It also includes Ondo Finance, providing its OUSG and USDY series of tokenized US Treasurys, Fasanara Capital for onchain private credit strategies and other regional providers such as Mercado Bitcoin and Superstate.

To ensure the security of these assets, R2 utilizes Anchorage Digital as an institutional custodian partner, providing secure asset custody and compliance infrastructure.

R2 emphasizes that the entire process is verifiable. All underlying positions can be tracked onchain, and the protocol publishes proof of yield and allocation data through an open dashboard and auditable smart contract logs.

A self-sustaining ecosystem

In addition to the base yields generated by the institutional RWAs, the protocol supplements its offering through its own seasonal token incentive programs. R2 tokens are distributed periodically as additional allocations to early depositors and long-term contributors to liquidity. The model is designed to create a self-reinforcing growth loop, combining real-world yield with onchain incentives.

R2 Protocol was also selected for the BNB Chain’s MVB10 Accelerator, where it was co-incubated by VC firm YZi Labs and price-tracking website CoinMarketCap.

“Real yield is no longer a buzzword. It is about building bridges between regulated yield and open finance,” said R2 founder Jeffrey Yang. “With more than ten institutional asset managers integrated and transparency built directly onchain, R2 makes institutional income accessible to anyone holding USDC.”

By aggregating multiple institutional sources and providing a transparent, verifiable layer, platforms like R2 Protocol aim to build a more resilient and mature infrastructure for the RWA sector, potentially increasing user trust and stability in onchain yield generation.

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