Protocol Integration
RAVA is settlement infrastructure, not an end user product. Lending protocols, asset managers, and treasury systems integrate RAVA settlement values to enable safe, composable credit markets for illiquid tokenized assets.
How Protocols Integrate
Protocols consume settlement values the same way they consume price oracles for liquid assets:
Step 1: Query Settlement Value
Protocol queries RAVA oracle with an asset identifier and receives the current settlement value based on latest market data and verified NAV.
Step 2: Calculate Borrowing Capacity
Protocol applies its own risk parameters to determine maximum borrowing:
Maximum borrowing equals settlement value multiplied by the protocol's chosen LTV ratio. Different protocols can set different LTV limits based on their risk appetite.
Step 3: Monitor Position Health
Protocol checks collateralization continuously. As settlement values update, margin requirements adjust automatically.
Step 4: Execute Liquidations
When position health falls below the liquidation threshold, the protocol liquidates using settlement value as reference. Settlement value ensures liquidation price is conservative and achievable.
Integration Patterns
Pattern 1: Collateralized Lending
Protocols like Aave, Compound, or Morpho integrate RAVA to accept tokenized asset collateral:
User deposits tokenized asset Protocol queries RAVA for settlement value User borrows stablecoins up to Protocol_LTV limit Settlement value updates trigger margin calls if needed Liquidations execute against settlement value
Pattern 2: Asset Management
Treasury management protocols use settlement values for portfolio valuation:
Track tokenized asset holdings at settlement value, not stale NAV Rebalance based on current risk adjusted valuations Report accurate portfolio values to stakeholders Integrate with existing DeFi strategies
Pattern 3: Structured Products
Index funds, tranched products, or yield aggregators build on settlement values:
Price fund shares using settlement value inputs Create senior/junior tranches with transparent risk pricing Enable instant redemptions priced at settlement value Compose with other DeFi primitives safely
Why Settlement Values Work for Integration
Standardized Interface
Every protocol integrates the same way: Single oracle call returns settlement value No custom valuation logic per asset class Consistent data format across all tokenized assets
Conservative by Design
Settlement values protect lenders: Always below estimated true value Reflect realistic liquidation dynamics Update as market conditions change
Transparent and Verifiable
Protocols can audit settlement calculations: All inputs are public or verifiably private Formula is deterministic No discretionary overrides
Composable Across Ecosystem
All protocols reference same values: Consistent leverage limits emerge naturally Cross protocol arbitrage keeps pricing tight Systemic risk is visible and measurable
Example: Isolated Lending Markets
Lending markets can accept tokenized asset collateral using RAVA settlement values:
- Market accepts tokenized assets such as private credit, real estate, or infrastructure funds as collateral
- Settlement value feed provides real time valuations
- LTV and liquidation thresholds set based on asset class
- Lenders supply capital, borrowers post tokenized asset collateral
- Settlement values update continuously
- If settlement value drops below threshold, liquidation triggers automatically
- Liquidator receives collateral at settlement value minus penalty
No custom valuation logic needed. No manual oversight. Standard protocol integration.
Example: Asset Management
A treasury holds tokenized private credit:
- Treasury tracks holdings using RAVA settlement values instead of stale NAV
- Settlement value reflects real liquidation value, adjusting for market stress
- Treasury knows true recoverable value at all times
- Can make informed decisions about rebalancing and risk management
- Stakeholders see transparent, continuously updated valuations
- No quarterly delays, no accounting lag
Network Effects
As more protocols integrate RAVA settlement values, the entire ecosystem benefits:
Deeper Liquidity
Same collateral accepted across multiple protocols creates fungibility and liquidity.
Better Risk Pricing
More data points and market participants improve settlement value accuracy.
Lower Costs
Shared infrastructure spreads development and maintenance costs.
Safer System
Consistent valuations prevent hidden leverage buildup and fragmentation risk.
Result
RAVA settlement layer transforms tokenized asset integration from a custom engineering project into a standard oracle integration. Protocols gain access to illiquid asset classes with the same safety and composability as liquid assets.
This is the missing infrastructure layer required for tokenized assets to scale across DeFi.