Getting Started with RAVA

RAVA is the settlement layer for tokenized assets without continuous market pricing. This documentation explains what RAVA does and why it matters for the future of on chain credit markets.

What RAVA Does

RAVA transforms NAV into settlement values that reflect what lenders would actually recover if a borrower defaults. These settlement values update continuously as market conditions change.

Traditional finance has always done this internally through hidden models. RAVA makes this process transparent and accessible.

Why This Matters

Tokenized assets like private credit, private equity, and real estate cannot be priced continuously. Their valuations are slow, smoothed, and lag market conditions. This makes them difficult to use as collateral.

Sophisticated lenders do not use NAV directly. They apply internal settlement models that adjust for:

Appraisal lags Illiquidity discounts Market stress Concentration risk Structural features

These models are proprietary and hidden. Borrowers never see them. But they determine everything: advance rates, margin calls, and liquidation triggers.

RAVA reconstructs this settlement logic in transparent form. The result is a public settlement value that credit markets can trust.

Who RAVA Serves

RAVA provides settlement infrastructure for any tokenized asset without continuous pricing:

Real World Assets (RWAs)

Private credit, real estate, infrastructure funds assets with quarterly NAV updates and no continuous markets. RWAs represent the largest pool of value that requires settlement models, making them the strongest use case for RAVA.

Failed Vault Tokens

Distressed lending positions where underlying collateral is uncertain and recovery timelines extend for months. RAVA provides transparent pricing where traditional methods fail completely.

Liquid Assets Under Stress

Even normally liquid assets need guaranteed bids when markets freeze. March 2020 showed that order books disappear precisely when liquidation is required. RAVA provides last resort capital for all assets during stress.

While RWAs represent the largest opportunity, RAVA's settlement layer works universally. Every tokenized asset benefits from guaranteed execution at conservative prices when traditional liquidity mechanisms break down.

How Settlement Values Work

Settlement value is calculated using a transparent adjustment model:

V_settlement = NAV × (1 − Adjustment)

The adjustment factor captures market conditions, appraisal lags, illiquidity, and verified risk data. It increases when risk rises and decreases when risk falls.

This ensures settlement values always reflect realistic recovery expectations under current conditions.

Key Concepts

Settlement Value

What you would actually recover if a borrower defaults. Always more conservative than NAV.

Adjustment Factor

Captures market stress, appraisal lags, illiquidity, and other risk factors. Updates continuously.

Overnight Repo

Continuous repricing of lending terms based on current settlement values. Eliminates dangerous lags that exist in traditional quarterly repricing.

Privacy Preserving Attestations

Encrypted proofs that verify private risk data without exposing confidential portfolio details.

Documentation Structure

Core Concepts:

1. The Problem Why NAV cannot support lending
2. The Core Idea RAVA makes settlement values public
3. Settlement Values How settlement values are calculated

Applications: 4. Overnight Repo Markets Continuous repricing of credit terms 5. Protocol Integration How protocols consume settlement values

Reference: 6. FAQ Common questions and answers 7. Whitepaper Complete technical specification

Traditional Finance vs RAVA

Next Steps

Continue reading to understand:

The Problem with using NAV for lending The Core Idea behind RAVA Settlement Values and how they work Overnight Repo Markets and continuous repricing Protocol Integration for lending markets Whitepaper Complete technical specification