RWA Protocol Evaluation Framework - SuperEarn Docs

While the categories below illustrate core evaluation angles, the assessment is not limited to these items. Additional dimensions may be considered based on the protocol’s structure, documentation, and risk profile.

Area 1: On-chain Protocol Integrity

Evaluation at the dApp level, verifying the technical and operational completeness and reliability of software operating on the blockchain.

Evaluation Item	Checklist & Key Points	Priority
1. Audit	Which firm conducted the audit? (e.g. top tier firms preferred) How many audits were performed? (At least 2 recommended) What were the results? (Were all Critical/High issues resolved?) Is the audit report publicly available?	Highest
2. Bug Bounty Program	Is there an ongoing bug bounty program on Immunefi, HackerOne, etc.? Is the bounty size adequate relative to TVL? (Large rewards indicate strong confidence in security)	Medium
3. Track Record	How long has the protocol operated on mainnet without issues? Have there been hacks or security incidents? If yes, how were they handled?	High
4. Admin Key Structure	Does an admin key exist that can alter core settings? If so, is it secured via multisig? Who are the multisig signers?	Medium
5. Team Structure & Reputation	Is the team anonymous or public? (Public teams generally inspire more trust) Do team members have prior experience successfully running projects? Which reputable VCs invested?	High
6. Governance Transparency	How are major governance decisions made? (Are forum discussions and on-chain voting results transparent?) Is the community (Discord, Telegram) active, and does the team engage with users?	Medium
7. Cross-chain Security (bridged tokens only)	Which bridging stack is used, and is the verifier set a threshold configuration (avoid 1-of-1)? Are there rate limits at both the transport layer (per-hour cap) and the mint layer (per-block cap), with a tested kill-switch?	Highest
8. NAV Oracle Attestation Profile	Is NAV attestation frequency clearly defined (for example daily, weekly, monthly, or an explicit schedule)? Can reference asset volatility or market spreads help identify stale NAV during stress? Are auditor, custodian, and fund administrator reporting lags transparent enough to assess valuation delay?	High

Area 2: Off-chain Asset & Structural Integrity

Evaluation of the quality of underlying assets and the legal/operational stability of financial products that function in the real economy.

Evaluation Item	Checklist & Key Points	Priority
1. Asset Class & Rating	(Asset Type) Are asset types and risk ratings clear? (e.g., US Treasuries, investment-grade corporate bonds, CRE loans) (Credit Rating, if applicable) Are there ratings from recognized agencies? (e.g., investment grade or higher)	Highest
2. Portfolio Composition	(For sources such as private credit) Is exposure to any single borrower, asset, or region kept below 10%? (Historical Performance) Are default and loss rate data over the past 2+ years transparent?	High
3. Asset Ownership Structure	(SPV/Trust) Is there an SPV structure that legally isolates assets from issuer bankruptcy risk? (Legal Claim) In case of issuer default, do investors have clear legal rights to the underlying assets?	Highest
4. Regulatory Compliance	Does the structure comply with laws in stable jurisdictions (e.g., US, Singapore)? Is there a clear legal opinion on securities classification, and have necessary licenses been obtained?	High
5. Manager Track Record	(Experience) Does the manager have significant experience and AUM in this asset class? Has the manager co-invested their own capital into the fund?	High
6. Transparency & Partners	(External Audit) Are regular audits conducted by external auditors? Are NAV reports and transparency data published regularly? (Third-party Partners) Are custodians or trustees (e.g., BNY Mellon) reputable?	High
7. Redemption & Liquidity	(Redemption Policy) Are policies on frequency (e.g., daily), settlement time (e.g., T+2), and fees clear and reasonable? Is timely redemption generally guaranteed under normal conditions? (Secondary Market) Is there a secondary market or other mechanism to provide liquidity during stress periods?	Highest
8. Risk Management Framework	(Valuation) Are asset valuations conservative and based on fair market value? (Stress Testing) Are results of stress tests (e.g., rate hikes, defaults) disclosed? (Insurance/Guarantees) Are there additional protections such as credit insurance or government guarantees?	Medium

Final Evaluation & Application

Each checklist item can be scored quantitatively. Additionally, for “Highest Importance” items, a Pass/Fail criterion can be applied: if even one such item fails, the protocol is automatically disqualified.