# RWf(x) | A CDP stablecoin silo system

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RWf(x) stablecoin silos operated by third parties allow RAAC to bring RWA assets on-chain. Each independent silo is a self‑contained vault that tokenizes a single asset class. Examples could include: gold, farmland, oil, data, water, etc.

Independent silos mint a branded stablecoin (e.g., pmUSD) against the asset deployed and deploys it into RAAC products and other DeFi protocols to support RAAC’s growth and earn yield.

Silos are backed by an asset which is tokenized via an RWA token (e.g. gold). The RWA token is deployed into the silo treasury which mints a COD token, representing a share of the treasury. Over time, the treasury earns yield and may take in other assets beside the RWA token. Silos can decide to sell COD tokens to raise cash. 50 % of net on-chain yield and 100% of off-chain yield generated by Treasury assets is paid pro‑rata to COD holders.

Each vault is isolated in underlying asset risk. For example, if the precious metals silo suffers a black swan event, the metals and agriculture silos are not impacted because assets and liabilities are legally and organizationally firewalled.

> RAAC captures upside through yield sharing, and acts as the coordination layer for all silos, awarding a programmable stream of emissions in return for 40% yield sharing on on-chain yields and 10% RWA asset ownership, thereby receiving 10% of off-chain yields. To start, these yields accrue to the RAAC Treasury.

### pmUSD

pmUSD, short for precious metals USD, is a synthetic stablecoin backed by tokenized in-situ gold reserves. RAAC’s tokenization partner is I-ON Digital Corp. which offers fully audited, compliant, and secure gold tokenization.

In-situ gold reserves are discounted by 80% from the real-time spot gold price, resulting in a reserve ratio of 5:1.

These discounted gold reserves back pmUSD. RAAC uses an official [f(x) Protocol](https://fxprotocol.gitbook.io/fx-docs/) 1.0 fork for its stablecoin creation. The 1x net long gold position is split into the  stablecoin pmUSD and a leveraged xGOLD position which eats all the volatility. For more info please refer to the [f(x) protocol documentation](https://fxprotocol.gitbook.io/fx-docs/).

The change to f(x) protocol is that RAAC internalizes the xGOLD position instead of offering leveraged gold exposure to the public.


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