Executive Summary

Core Problem

Tokenized alternative assets — RWAs, pre-IPO equity, private fund interests — 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 (the asset is on-chain but secondary trading is dead) or sacrifice security for instant exit (no real legal claim under stress).

Paimon's Approach

Rather than building one product that tries to satisfy every user simultaneously, Paimon ships two product lines that pick the right point on the compliance / liquidity spectrum for their target audience, and connects them through shared issuance and reputation infrastructure.

Live Product 1: Paimon Prime Vault (PP)

An ERC-4626 RWA fund that aggregates user deposits into a tiered portfolio:

• Tier 1 — Cash: instant liquidity (USDT and equivalents)

• Tier 2 — Money Market: short-duration yield assets (currently CashPlus / CASH+)

• Tier 3 — Long-Duration RWA: quarterly+ liquidity assets

Holders receive PP shares, with NAV computed from gross assets minus liabilities and fees. Redemption is two-channel:

• Standard (T+7, 0.5 % fee) — aligned with Tier-2 settlement cycle

• Emergency (T+0, 1.5 % total fee) — capped by a KEEPER-managed emergencyQuota to prevent runs

Large redemptions (above 50 K standard / 30 K emergency, or 20 % of the relevant quota) require KEEPER approval before locking shares.

Live Product 2: Pre-IPO SPV Tokens (pSPCX / xSPCX)

A two-token compliance design that tokenizes single-issuer alternative assets:

• pSPCX — EIP-3643 permissioned token, KYC-gated, the legal "security wrapper"

• xSPCX — plain ERC-20, freely transferable, the DeFi-friendly mirror

The two are linked through a TokenBridge that holds the invariant totalSupply(xSPCX) = lockedAmount(pSPCX) × ratio (currently 1:10). KYC users can hold either; non-KYC users can hold and trade xSPCX freely but cannot redeem back into pSPCX.

The first asset on this rail is a SpaceX SPV — issued April 2026 as the xSPCX V4 drop ($200 K raise, 30,600 tokens, 4-layer pricing from $2.75 to $6.93). The architecture is designed to scale to additional pre-IPO names without redeploying core infrastructure.

Shared Infrastructure

Module	What it does
Launchpad	4-Layer Drop with points-and-USDT double gate, refund window, Batch / MerkleClaim settlement
Points	PointsHubV2 aggregates non-transferable reputation from PPT staking and LP staking; spent at Drop commit time
Badges	PaimonBadge mints Soulbound NFTs per drop participation (Space Pioneer, AI Believer, Dual Holder, Top Referrer, Quest Master)
Compliance	KYCAggregator + SimpleKYCProvider — currently used for institutional pSPCX onboarding; can fan out to additional KYC providers without contract changes
Treasury	PaimonTreasury collects platform fees and routes redemption payouts

Design Principles

1. Liquidity is a budget, not a right. Instant exit is a finite resource and has a cost. Both PP's Emergency channel and pSPCX-side primary settlement enforce this through fees and quotas.

2. Compliance is a two-token problem. Trying to make one token both KYC-gated and DeFi-composable forces a bad compromise. The pSPCX/xSPCX split lets the two requirements live in their proper homes.

3. Reputation, not emission. Until a governance token launches, points + badges drive sticky participation. Each user's accrual depends only on their own activity, not on emission rate sharing.

4. Transparency over promise. Quotas, NAV, redemption queue depth, drop commitments and settlements are all on-chain or backed by indexed events.

What This Document Is Not

Several sections of this gitbook describe Phase-2 designs that are not deployed: the Tranche Vault (sPP/jPP), PAIMON / vePAIMON / esPAIMON tokenomics, the Paimon DEX, the automated Protection Band, the Gauge / Bribe market. These chapters carry a "Phase 2 Concept" banner. They reflect the team's intended sequencing but should not be read as live functionality. See the Roadmap for ordering.

Target Users

User Type	Today's product	Value proposition
DeFi users seeking RWA yield	PP (Prime Vault)	Diversified portfolio with documented redemption rules
DeFi users seeking pre-IPO exposure	xSPCX	Free secondary transfer; SPV-backed exposure without KYC
Institutional / accredited investors	pSPCX	KYC-clean, settlement-ready security token
Asset issuers	Launchpad Drop	Compliant tokenization + 4-Layer fair-launch distribution
Long-term participants	Points + Badges	Reputation-driven access to future drops