Pinance Whitepaper
A Universal DEX For RWAs
Overview
Pinance is a universal decentralized exchange (DEX) for tokenized real-world assets (RWAs). It provides a unified platform where you can trade any RWA from any asset category from any ecosystem all on on place. This documentation covers Pinance’s core concepts, unique features, and mechanisms.
Core Concepts
RWA-Optimized Exchange
Traditional DEXes struggle with RWAs due to: • Lack of real-world price integration • Inefficient liquidity deployment • Inability to handle asset-specific properties (e.g., yields, maturities) • Disconnection from off-chain value
Pinance addresses these challenges with tailored infrastructure for tokenized assets like real estate, fixed-income securities, compute resources, and other emerging RWAs.
Fair Market Value (FMV) Integration
Pinance bridges on-chain trading with real-world values through: • Oracle Integration: Leveraging price feeds from Chainlink, Pyth, and specialized RWA oracles • FMV Anchoring: Liquidity pools concentrate around oracle-provided FMV • Dynamic Fee Adjustment: Fees dynamically adjust based on price movement relative to FMV, creating natural arbitrage opportunities (note: keep detailed mechanics confidential until launch) • Price Stability Mechanisms: Ensuring pool prices stay closely aligned with underlying assets
Asset-Specific Features
Pinance natively manages unique RWA behaviors: • Yield Distribution: Automates dividends, interest, and rental income payments • Maturity Management: Special handling of assets nearing expiration or maturity • Utilization-Based Pricing: Dynamic pricing models for compute or storage resources • Compliance Enforcement: Enforces built-in transfer restrictions for regulated assets
The Pinance Bribe System
Introduction
Pinance’s bribe system provides targeted liquidity incentives, allowing users and protocols to direct rewards precisely where needed.
How Bribes Work
Vote-Escrow Model • Users lock PIN tokens to obtain vePIN (vote-escrowed PIN) • Longer lock periods (1–4 years) yield greater voting power • vePIN holders vote on gauge weights, directing liquidity incentives
Creating Bribes • Users/protocols can create bribes using PIN, stablecoins, or RWAs themselves • Example: Real estate issuers incentivize liquidity pools using rental income
Voting and Rewards • vePIN holders vote to allocate emissions • Voters receive bribes proportionally based on voting power • Liquidity providers (LPs) benefit from boosted incentives
Unique Power of RWA-Native Bribes
Real Estate Example: • Token issuer allocates rental income as bribes • vePIN voters receive this yield, boosting liquidity and trading volume • T-Bill Example: • Issuers allocate yield (basis points) as bribes • Voters earn risk-free yield, incentivizing liquidity depth
Multi-Layer Yield Structure for LPs
Pinance offers a multi-layer yield mechanism: • Base Layer: Swap trading fees • Protocol Layer: PIN emissions from gauge voting • Boost Layer: Enhanced rewards for vePIN stakers • RWA Layer: Direct yield from underlying RWAs (interest, dividends) • Bribe Layer: Additional rewards from bribe-driven incentives
FMV Hooks System
Understanding FMV Hooks
FMV Hooks are specialized smart contracts aligning on-chain trading to real-world valuations.
Core functions include: • Price Anchoring: Using oracles to align token prices with real-world valuations • Dynamic Fee Modulation: Fees adjust depending on trade alignment with FMV • Market Alignment: Ensures token prices reflect real-world asset fundamentals
Asset-Specific Hooks
Yield Distribution Hooks
Automatically manage and distribute RWA-generated yields: • Dividends, rental income, interest payments, and revenue shares
Example:
Real-world yield (e.g., rent) is tokenized and sent to hooks
Yields are automatically distributed to LPs based on pool positions
Maturity Management Hooks
Support assets with specific expiration or maturity dates: • Gradual price convergence as maturity nears • Auto-redemption or optional rollover to new asset series • Term structure management for varying maturities
Example: • T-Bills’ price adjusts gradually towards face value as maturity approaches
Utilization-Based Hooks
Dynamic pricing based on utilization rates for assets like: • Compute (GPU/CPU), storage, and bandwidth resources
Example: • GPU utilization spikes trigger increased asset pricing, incentivizing more supply
Regulatory Compliance Hooks
Enforce regulatory constraints such as: • KYC verification, accreditation checks, and transfer restrictions • Jurisdiction-specific compliance enforcement
Example: • Trades revert if compliance requirements (e.g., KYC) aren’t satisfied
Liquidity Aggregation System
Cross-Venue Liquidity
Pinance aggregates liquidity from multiple sources to solve fragmentation: • Native Pinance V3 pools • External DEX integrations • Centralized order book connections • Off-chain OTC market liquidity
Smart Order Routing
Optimizes trade execution by: • Minimizing price impact and slippage • Factoring gas costs in routing decisions • Splitting orders across multiple liquidity venues • Tailoring execution specifically for RWAs
Unified Liquidity Visualization
Pinance provides traders with comprehensive liquidity insights: • Aggregated depth charts across venues • Best execution indicators highlighting optimal trade routes • FMV overlays indicating relative asset value • Yield indicators displaying embedded returns on RWAs
Governance and the PIN Token
vePIN System
vePIN enables governance through token locking: • Users lock PIN tokens (1–4 years), earning proportionate governance power • Voting power decays linearly over the lock duration • Gauge weights voted weekly to manage incentives
Governance Rights
vePIN holders govern: • Protocol fee structures • Emission rates and distributions • Approval and security of FMV hooks • Adjustments of pool parameters • Treasury allocations
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