Introduction
DeFi-Native Liquidity Protocol for RWA
Disclaimer
This document outlines the mechanism design and system architecture of the Paimon Protocol and does not constitute investment advice, an offer to sell securities, or a solicitation of an offer to buy securities. The Protocol involves alternative assets such as Real-World Assets (RWA), private equity, and private funds, whose legal attributes, investor suitability, and information disclosure are subject to the regulations of relevant jurisdictions. All parameters are subject to the on-chain contracts and governance charter.
What is Paimon Finance?
Core Problem: Tokenized alternative assets (RWAs, private equity, private funds) face a structural dilemma—a fundamental mismatch between on-chain liquidity and the off-chain asset realization cycle. Existing solutions either sacrifice liquidity for compliance or security for instant exit, offering no compromise.
Paimon's Solution: Constructing a three-tier closed-loop architecture that deeply integrates real returns from alternative assets with native DeFi liquidity mechanisms:
Launchpad
Compliance-driven issuance and access screening
Audited On-Chain Assets
Prime Vault
ERC-4626 Asset Aggregation and NAV Management
PP Share Token
DEX + Vote
Secondary Market Liquidity and Governance Incentives
Price Discovery + Yield Distribution
Key Innovations
Yield Tiering (Tranche): PP holders may choose Senior (sPP, fixed 4% yield) or Junior (jPP, risk-bearing for leveraged returns), catering to diverse risk preferences
vePAIMON Governance Model: PAIMON may be locked into vePAIMON to obtain time-weighted governance power for gauge voting, protocol parameter signaling, and value-return mechanisms
Tiered Liquidity Budget: L1 (Instant)/L2 (T+7)/L3 (Quarterly), aligning with real asset liquidation cycles
Two-Channel Redemption Mechanism: T+0 (Penalized)/T+7 (Standard) with approval workflow, balancing liquidity demand and system security
Discount/Premium Protection Band: Automatic suspension of emergency redemptions at ±15% deviation to prevent run feedback loops
Target Users
DeFi-native institutions seeking alternative asset exposure
Liquidity providers pursuing real yields
Issuers aiming to tokenize assets
Quick Navigation
Executive Summary - High-level protocol overview
System Architecture - Technical architecture details
Tranche Vault - sPP/jPP yield stratification
Token Economics - PAIMON tokenomics
Risk Disclosure - Known risks and mitigations
Contact & Resources
Website: paimon.finance
X (Twitter): @Paimon_Finance
GitHub: Paimon-R-D
Telegram: paimon_rwa
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