Private fund interests sit frozen for years. LPs hold valuable positions in credit, real estate, and infrastructure funds, but these investments stay locked until the fund winds down. To trade yield, you need market pricing, not manager reports. Self reported NAVs work for accounting, but they can't support a trading market. Real price discovery requires buyers and sellers, continuous trading, and transparent signals. Without that, the locked LP token produces nothing while waiting, and any lending against it relies on projected NAV rather than actual income.
Tokenized fund shares brought LP positions on chain but didn't create market pricing or income generation. These tokens represent ownership tied to manager reported valuations. Regulatory constraints limit who can trade them and how they transfer. Markets discount illiquid assets heavily because they're hard to value and harder to exit. The LP token stays locked not just by fund mechanics but by regulation and market skepticism toward assets without continuous pricing.
RAVA creates a market layer where private fund yield gets priced continuously and generates real income for the LP. Through yield swap contracts, LPs exchange their future cashflows for immediate liquidity and ongoing market participation. The principal stays with the LP who keeps full ownership of their LP token. Only the realized yield stream transfers to RAVA: interest payments, rent, sale proceeds. These cashflows back rFund tokens that trade every day. Now the LP's position becomes productive in a new way. Every trade in the rFund market generates fees, and those fees flow back to the LP. The locked LP token that produced nothing now produces verified trading fee income. This income can be used as collateral for loans because it's real cashflow, not projected NAV.
The rFund market is where frozen yield gets priced and where LP tokens start earning. Traders buy and sell exposure to different private fund income streams creating continuous price discovery. Every transaction generates fees that flow back to the original LPs who contributed their yield rights. The LP token that was locked and earning nothing now produces ongoing trading fee income. This transforms lending. Before, you could only borrow against projected NAV. Now you can borrow against actual trading fee income flowing to your LP position. When the underlying cashflows arrive, settlements execute in USDC based on realized performance.
RAVA creates Realized Yield Indexes built entirely from actual cash movements. These indexes aggregate verified performance data: interest payments, rental income, sale proceeds, distributions. No appraisals, no NAV marks, no projections. Only realized cash qualifies. Between cash events, the index stays flat while rFund markets trade continuously on expectations. This separates speculation from settlement. Traders create market prices reflecting future yield expectations. The Realized Yield Index settles those expectations against actual cash when it arrives.
RAVA transforms frozen fund interests into income producing assets with market pricing. The LP keeps their token and ownership. But now that token generates real trading fee income from the rFund market activity. This income can be borrowed against because it's actual cashflow, not projected NAV. Before RAVA, lending against LP positions relied on manager projections. Now lending is backed by trading fee income flowing to the LP. Traders provide the liquidity and price discovery. Realized Yield Indexes provide the settlement truth. Performance is no longer reported, it's priced. LP tokens are no longer frozen, they're earning.