4. The RAVA Yield Index

The RAVA Yield Index is a family of Realized Yield Indexes that measure verified yield performance across all RWA pools held by the Treasury. Each rFund has its own Realized Yield Index that tracks one specific source of yield, such as a credit pool, real estate fund, or infrastructure loan portfolio. These indexes together form the broader RAVA Yield Index, which reflects the total realized yield across the system.

Each rFund index moves only when real income has been recorded from its underlying asset pool. Yield becomes realized when the fund receives interest, rent, or repayments. In ERC 4626 vaults and other compounding funds, yield is first realized at the fund level but becomes at risk again once it is reinvested. That reinvested value can later be lost if new assets underperform. RAVA tracks this as provisional yield within the index, recognizing that it is based on actual income received but not yet confirmed through redemption or distribution.

Each rFund token represents exposure to the redemption value of its own yield index. Traders are speculating on how much USD that specific fund will ultimately distribute when its yield is realized. rFund prices therefore reflect the market's forecast of each fund's final cash performance, while the RAVA Yield Index framework provides a transparent reference for tracking and comparing yield behavior across all funds in real time.

Trading activity in rFund markets generates fees that flow back to the original LP who contributed their yield rights. The LP token that was previously locked now produces ongoing income from market activity. This transforms the LP position from frozen asset to income producing collateral.