Introduction

Why Mystic

The volume of tokenized assets (e.g. bonds, stocks) is projected to explode in coming years, as institutions realize blockchain rails are more efficient than their current infrastructures and thus can provide cost benefits.

Currently sitting at around $40 billion in volume, most tokenized securities sit on private blockchains and are controlled by banks and asset managers. It is Mystic’s assumption that tokenized securities on public or semi-permissioned blockchains will also dramatically increase, as institutions focus more and more on generating revenue with these assets beyond just cost-cutting.

Securities-backed lending is standard practice in the financial space, as it enables investors to access liquidity on their portfolio and thus leverage their positions. Crypto-backed lending has itself taken much inspiration from securities-backed lending. However, as tokenized securities come on-chain, existing crypto-backed lending platforms are unfit to support them.

The biggest problem facing DeFi lending is liquidations. RWAs are significantly more illiquid than crypto, and so they require special attention to be onboarded as collateral in lending markets. Mystic solves this via a novel liquidation mechanism which combines risk tranching with bringing on professional liquidators to the table.

What is Mystic

We’re making a lending market dedicated to RWAs, which takes RWA's different characteristics into account and not only supports them, but leverages them to their full potential. The Mystic protocol has 3 key components that help us achieve this:

• Curated Vaults - lending vaults curated by the best institutions in the space, secured by our novel liquidations engine.

• Leverage Strategies - 1-click deploy leverage to facilitate looping.

• Liquid Staking - two-token liquid staking for the PLUME token via myPLUME and mystPLUME.

The result of this architecture is a protocol that can modularly support both RWAs and digital assets of all liquidity profiles, whilst maximizing for capital efficiency and risk reduction. Mystic is the lending market of tomorrow, built to bring DeFi to whole new asset classes. Our liquid staking module also enables us to cement our position in the Plume ecosystem.