Multiliquid: An Open Liquidity Protocol for Tokenized Real-World Assets and Stablecoins

Abstract

Multiliquid is an open, neutral, and permissionless smart contract protocol designed to facilitate atomic, 24/7 swaps between high quality, tokenized real-world assets (RWAs) and stablecoins. Built for institutional users, the protocol enables seamless treasury management, yield optimization, and liquidity access without the need for traditional liquidity providers, pre-funding, or price discovery mechanisms. By leveraging Delegate Contracts for modular integration, Multiliquid ensures compliance with issuer permissions, enforces risk controls, and supports scalability across EVM-compatible chains and Solana (coming soon).

The protocol addresses key challenges in on-chain finance: the inefficiency of pre-funded liquidity models for low-volatility assets and the need for 24/7 instant convertibility of low-risk, redeemable assets like money market funds at their net asset value (NAV). Through integrations with Stablecoin Issuers, Balance Sheet Providers, trading firms, exchanges, and operating businesses, Multiliquid creates a network effect where participants gain access to a growing ecosystem of assets and stablecoins.

Furthermore, Multiliquid represents a net-new distribution channel for Stablecoin Issuers, allowing them to mint liquidity to a wide range of market participants against the receipt of eligible reserve assets, thereby growing float while simplifying treasury operations.

This whitepaper outlines the protocol’s purpose, design principles, architecture, operational flows, compliance considerations, and integration pathways. Multiliquid is developed by Uniform Labs, a technology firm committed to advancing institutional financial infrastructure on modern rails.

1. Introduction

Multiliquid represents a foundational liquidity layer for on-chain finance, bridging tokenized assets and stablecoins in a compliant, efficient manner. Deployed as a smart contract protocol on EVM-compatible blockchains and Solana (coming soon), it prioritizes institutional adoption by emphasizing regulatory compliance, security, and scalability over retail-oriented features.

At its core, Multiliquid enables a variety of high-quality assets and stablecoins to be integrated and swapped atomically, 24/7, while respecting issuer-established permissions. This approach fosters diverse on-chain yield opportunities and liquidity availability, supporting use cases from treasury sweeps to cross-asset conversions.

Unlike traditional DeFi protocols reliant on incentivized liquidity pools, Multiliquid adopts a mint-on-the-fly and direct-transfer model for tokenized Treasury assets specifically, drawing liquidity from Stablecoin Issuers’ reserves and augmented by Balance Sheet Providers. This design, applicable to tokenized MMFs, ensures 1:1 pricing at NAV, and scales without introducing unsustainable incentives.

2. Purpose and Use Cases

Multiliquid enables market participants to access risk-free yields via tokenized Treasury assets while maintaining instant convertibility to stablecoins for liquidity needs. By leveraging atomic swaps, the protocol unlocks efficient treasury management in a 24/7 on-chain environment.

Key use cases include:

On-Chain Sweeps: Automatically convert idle stablecoins into yield-bearing Treasury assets and vice versa, optimizing capital efficiency.

24/7 Instant Redemption/Subscription: Purchase or redeem RWAs for stablecoins instantly, bypassing traditional settlement delays and redemption windows.

Yield on Idle Stablecoin Balances: Earn the risk-free rate on stablecoin holdings without locking up funds.

Treasury Management: For firms using stablecoins, manage liquidity and optimize yield with seamless conversions.

Cross-Asset Swaps: Instantly swap between a variety of tokenized Treasury assets and RWAs.

Payment Integrations: Spend against tokenized Treasury assets, with real-time conversions.

Cross-Chain Liquidity: Future support for swaps across chains, enhancing interoperability and asset liquidity.

These use cases leverage the protocol’s accessibility and neutral design across a wide range of assets and stablecoins.

3. Design Considerations for Risk-Free Asset Convertibility

Tokenized Treasury assets, such as money market funds (MMFs), represent a unique category within on-chain finance: they are low-volatility, NAV-priced securities that are redeemable at par (typically on a T+2 basis) and yield close to the risk-free rate. These features make them highly attractive for savings, treasury management, and settlement purposes. However, the same characteristics also expose the limitations of traditional on-chain liquidity models, which were designed for volatile assets rather than NAV-based cash equivalents.

To facilitate the growth of institutional finance on-chain, solutions are necessary to deliver instant, 24/7 convertibility of cash equivalent assets capital-efficiently and in size while preserving their fundamental properties—NAV-based valuation, risk-free yield, and robust safety, security and compliance—without introducing risk, complexity or artificial incentives.

3.1 Pricing

Pricing is the cornerstone of risk-free asset convertibility. Money market funds are valued at NAV, and any deviation from 1:1 exchange against stablecoins undermines their utility as cash-equivalent instruments. Conventional DeFi mechanisms such as AMMs and bonding curves introduce slippage, spreads, and speculative dynamics that are incompatible with treasury use cases.

Multiliquid enforces fixed-price swaps at NAV, with the option for Stablecoin Issuers or Balance Sheet Providers to apply a Price Adjustment to account for operational, timing, or inter-day settlement risks. This approach ensures transparency, preserves the integrity of the underlying asset, and provides participants with predictable outcomes.

By separating risk management (via controlled adjustments) from price discovery (which is unnecessary for cash equivalent NAV-based assets), the protocol creates a clean, scalable framework for risk-free asset convertibility.

3.2 Cost of Capital

The economics of risk-free assets fundamentally constrain how liquidity can be provided. Since U.S. Treasuries and MMFs yield the risk-free rate, any structure that requires liquidity providers to pre-fund balances or take on leverage becomes uneconomical. Traditional AMM pools and lending protocols rely on returns that exceed the risk-free rate to justify capital lock-up, often through token incentives or volatile spreads. Neither approach scales in markets where the margin is inherently thin.

Multiliquid solves this problem for risk-free assets by enabling mint-on-demand liquidity directly from Stablecoin Issuers, supplemented by Balance Sheet Providers that deploy pre-existing balances. This architecture eliminates the need for idle pre-funding, minimizes the opportunity cost of capital, and allows participants to capture incremental yield without impairing 1:1 convertibility.

The result is a liquidity model aligned with the underlying economics of Treasuries: lean, efficient, and sustainable.

3.3 Scalability

Scalability in risk-free asset markets is less about trading velocity and more about depth and certainty of liquidity. Pre-funded models scale poorly because they tie up balance sheets in exchange for minimal yield, leading to chronic under-provisioning. For institutional participants, such models quickly become operationally and economically prohibitive.

By sourcing liquidity directly from Stablecoin Issuers, Multiliquid can facilitate large transaction sizes without requiring incremental capital lock-up. This approach makes it possible to process large flows—such as institutional treasury sweeps, redemptions, or settlement flows—at minimal marginal cost.

Further, because liquidity is drawn atomically and returned in real time, the protocol avoids fragmentation across pools and markets. This design ensures that every swap benefits from the full depth of the network, reinforcing Multiliquid as a scalable foundation for on-chain cash management.

3.4 Compliance and Permissioning

Convertibility of tokenized assets, whether MMFs, CLOs, private credit, or other asset classes, requires careful alignment with regulatory and issuer-imposed controls. Tokenized financial assets are frequently distributed under permissioned frameworks, where only approved investors or wallets may hold or transfer them. Unlike retail-focused DeFi models, Multiliquid is architected to inherit and enforce these permissions at the protocol level, ensuring that swaps respect whitelists, blacklists, and jurisdictional constraints.

This compliance-by-design approach positions Multiliquid for institutional adoption, reducing legal and operational friction while preserving the neutrality and openness of the protocol.

3.5 Atomicity and Settlement Finality

Tokenized Treasury asset transfer and settlement processes can vary by issuer and jurisdiction, complicating use cases and slowing market development.

In traditional finance, settlement of Treasuries involves intermediaries, clearinghouses, and multi-day timelines. On-chain, atomic swaps can theoretically collapse this process into a single transaction: assets move wallet-to-wallet, stablecoins are minted, burned or transferred, and fees are collected, all in one step.

However, in order to deliver true atomicity and instant settlement, coordination is required between infrastructure and asset issuer to ensure administrative requirements are met to effect legally enforceable asset exchange.

By combining smart contract-based programmability and finality with issuer-specific asset transfer logic, Multiliquid enables instant, atomic asset exchange, eliminating counterparty and settlement risk, delivering a level of certainty superior to traditional market infrastructure. For risk-free assets intended to serve as cash equivalents, this functionality is essential to enable use in day-to-day collateral management, treasury operations, payments, and liquidity flows. For price-volatile assets of other types, speed and certainty of settlement are equally crucial, especially in times of market stress, when it matters most.

4. Protocol Design

Multiliquid is open infrastructure accessible to all eligible participants. It facilitates fixed-price, NAV-based swaps between tokenized assets and stablecoins, sourced from:

Stablecoin Issuers: Accept eligible Treasury assets into reserves and mint stablecoins atomically, and vice versa.

Balance Sheet Providers: Supply stablecoins and tokenized assets via dedicated contracts.

4.1 Asset and Stablecoin Provision

Assets and stablecoins are provided into Multiliquid by Stablecoin Issuers and Balance Sheet Providers to fulfill user swap requests.

4.1.1 Stablecoin Issuers

Multiliquid provides Stablecoin Issuers with a net-new distribution channel by enabling direct issuance of stablecoins against tokenized money market funds and other eligible reserve assets. Through integration into Multiliquid, issuers can expand their float, meet institutional demand, and simplify treasury operations with no new infrastructure build.

Issuance via Multiliquid is atomic and programmatic, ensuring that minting and redemption occur in real time, against verified assets, based on underlying NAV. This structure reduces operational overhead, enhances cost efficiency, and supports 24/7 distribution.

Beyond issuance, integrated Stablecoin Issuers can diversify their own reserves across a range of on-chain Treasury assets, streamlining asset allocation and treasury management. By embedding into Multiliquid’s standardized issuance flow, issuers ensure full control over risk management, whitelisting, and pricing while unlocking access to a broad and growing base of institutional users.

4.1.2 Balance Sheet Providers

In addition to liquidity supplied by Stablecoin Issuers, Multiliquid enables a broad range of participants—referred to as Balance Sheet Providers—to supply liquidity directly into the protocol. These may include trading firms, asset managers, DeFi vaults, or institutions with available stablecoin or tokenized asset holdings.

Balance Sheet Providers deposit stablecoins and/or tokenized assets into designated contracts that they control and configure the parameters under which swaps may occur. Market participants can then exchange eligible assets or stablecoins against these contracts via Multiliquid in real time, with execution governed by the Balance Sheet Providers’ predefined terms.

The economics for Balance Sheet Providers are twofold: the yield generated on tokenized assets held or received via swaps and the discount (Price Adjustment) at which they supply liquidity.

Through its Delegate Contract mechanism, Multiliquid standardizes liquidity provision across all Balance Sheet Providers and Stablecoin Issuers, resulting in a deep, frictionless, institutional swap experience.

By acting as Balance Sheet Providers, institutions can put excess stablecoin or asset holdings to work in a low-risk, low-volatility investment strategy, capture incremental returns, and strengthen overall liquidity depth across the Multiliquid network.

For detailed mechanics of Balance Sheet Provider integration and swap operations, see Section 7.3, below.

4.2 Swap Requests

Swap requests are input by users via the Multiliquid frontend, third-party frontends, programmatically via the Multiliquid API, or directly via the Multiliquid smart contracts. Based on the asset or stablecoin they wish to swap, users can view available asset/stablecoin liquidity and precise swap output (net of Price Adjustment and fees). Users can select the asset/stablecoin they wish to receive based on availability and output amount and execute the swap.

4.3 Swap Pricing

Swaps reference the asset’s NAV, retrieved real-time from the asset’s contract or oracle. Liquidity providers set a Price Adjustment (in basis points) per asset to manage risk or incentivize flows.

Formula:

Swap Price = NAV * (1 – Price Adjustment)

Example: NAV = 100, Adjustment = 100 basis points (1%) → 99 stablecoins per unit of asset.

A protocol fee is deducted from the stablecoin leg.

4.4 Whitelisting and Permissioning

Multiliquid inherits issuers’ whitelists, enforcing them via frontend/API checks and token contracts. Users must onboard directly with issuers; the protocol does not participate in KYC or onboarding.

5. Protocol Architecture

Multiliquid’s modular architecture centers on upgradeable smart contracts using OpenZeppelin’s UUPS proxy pattern, ensuring extensibility and security.

Key components:

Swap Contract: Orchestrates swaps, validates parameters, calculates outputs, and emits events. Supports multiple assets and stablecoins via mappings.

Delegate Contracts: Modular adapters for assets and stablecoins, handling custom risk controls, access and pricing parameters, transfers, minting and burning.

All contracts use OpenZeppelin libraries for RBAC, reentrancy protection, and safe ERC-20 interactions.

5.1 Operational Flow

1. User Authorization: Approve Delegate Contract for token transfers.

2. Swap Initiation: Specify input asset and amount.

3. Validation and Calculation: Check whitelists, limits; compute output using NAV, Price Adjustments, fees, and gas.

4. Risk Checks: Query Asset Delegate for custom controls.

5. Execution: Stablecoin or Balance Sheet Provider Delegate handles mint/burn/transfer; fees deducted to protocol fee wallet.

6. Completion: Deliver output asset; emit events for traceability.

Swaps are atomic: all-or-nothing execution.

5.2 Swap Contract Details

Functions:

swap(): Bidirectional functions for asset-to-stablecoin and vice versa.
calculate(): Previews swap outputs.

Admin functions: Set fees, asset eligibility, blacklists.

5.3 Asset Delegate Contracts

Optional for assets with custom logic (e.g., transfer limits).

Functions:

check(), for risk validation
whitelist()
pause()/unpause()

5.4 Stablecoin and Balance Sheet Provider Delegate Contracts

Handle mint-/burn-on-the-fly (Stablecoin Issuers) or transfers (Balance Sheet Providers).

Functions:

deploy(), for execution
whitelist()
setCustodyAddress()
setDiscountRate() and setRedemptionFee()
pause()/unpause()

5.5 Security and Extensibility

Security: RBAC, reentrancy guards, validations; third-party audits; Defender integration for monitoring.

Extensibility: Modular delegates for new integrations; upgradeable contracts; single-chain swaps initially, with cross-chain planned.

Configurable daily limits (e.g., per wallet) and pausability ensure risk management.

6. Access Methods

Users can access Multiliquid in a number of ways:

1. Multiliquid frontend
2. Third-party integrations (e.g., issuer UIs, aggregators)
3. API for programmatic access
4. Direct smart contract calls

Uniform Labs supports institutional setups and third-party developer access.

6.1 Developer Integrations

Via the API, developers can integrate Multiliquid’s swap and liquidity provision (Balance Sheet Provider) endpoints into their own applications to embed instant, atomic, NAV-based swaps supported tokenized assets and stablecoins and associated yield generation.

Examples include:

– Neobanks offering stablecoin-based sweep accounts.
– Wallets offering native swaps.
– Stablecoin-based corporate treasury and payments platforms offering yield on excess balances.
– Lending protocols and curators requiring instant RWA redemptions for risk management.
– Liquid funds and trading desks seeking yield/liquidity automation.
– DEXs and DeFi aggregators adding tokenized RWA swaps.

7. Integration Pathways

Multiliquid’s modular Swap and Delegate Contract architecture is designed to support the rapid integration of new RWAs, Stablecoin Issuers, and Balance Sheet Providers. The process emphasizes ease of setup, security, and compliance with issuer-specific requirements. Uniform Labs provides technical support for integrations, including Delegate Contract development, testing, and deployment assistance.

Multiliquid is architected for scalability. The core protocol components and Delegate Contract templates are rigorously audited. New asset and liquidity integrations are implemented via Delegate Contract deployments, which are quick to undertake and do not require protocol upgrades.

Below, we detail the step-by-step integration processes for each participant type. These pathways leverage the protocol’s extensible design, where new assets or liquidity sources can be added with no changes to core logic and with minimal issuer intervention.

7.1 Tokenized Assets

Asset issuers, including those tokenizing MMFs, CLOs, private credit, private equity, real estate and commodities, can integrate their assets into Multiliquid to enable 24/7 stablecoin swaps. Most tokenized assets share common traits: NAV-based pricing, permissioning via whitelists, and free transferability between approved holders. Integration can be permissionless in many cases, but issuers may collaborate with Uniform Labs for custom features or logic.

Setup Process:

1. Assessment and Compatibility Check: Review the asset’s smart contracts for compatibility (e.g., ERC-20 compliance, NAV oracle integration). Uniform Labs assesses any custom logic, such as daily transfer limits or pre-approvals, to determine if a customized Asset Delegate Contract or frontend flow is needed.

2. Direct Registration (for Standard Assets): If no custom logic is required, the asset is added directly to the Swap Contract’s registry with the support of Uniform Labs. This involves:

– Obtaining the asset’s contract and whitelist addresses and NAV source (e.g., on-chain oracle or contract function).
– Updating the Swap Contract via its admin functions to include the asset.

No deployment of new contracts is needed; this process can be performed quickly by Uniform Labs.

3. Delegate Contract Deployment (for Custom Logic): For assets with unique logic or customization (e.g., wallet-specific limits or asynchronous transfer approvals):

Uniform Labs collaborates with the issuer to deploy a tailored Asset Delegate Contract, which abstracts and standardizes interactions with the Swap Contract.

Once deployed, the Asset Delegate’s address is registered in the Swap Contract.

This process is straightforward, requiring 3 days to 2 weeks, depending on custom requirements and testing. Integration enables the RWA to benefit from Multiliquid’s liquidity network without altering the asset’s core contract.

7.2 Stablecoin Issuers

Stablecoin Issuers integrate to provide liquidity by accepting tokenized Treasury assets into their reserves and minting stablecoins on-the-fly (or burning them for Stablecoin-to-Treasury asset swaps). Integration with Multiliquid creates a new distribution channel for Stablecoin Issuers and enhances their treasury operations while preserving full control over minting/burning, pricing, and risk management.

Setup Process:

1. Initial Collaboration and Requirements Gathering: Uniform Labs works with the issuer to understand their minting architecture (e.g., single-party minting, authorized minters, pre-minting). Key details include reserve custody addresses, mint/burn flow, and supported reserve assets.

2. Delegate Contract Customization: A dedicated Stablecoin Delegate Contract is developed and deployed, tailored to the issuer’s flows.

Includes admin functions:

setDiscountRate() and setRedemptionFee() for Price Adjustments
whitelist() for accepted MMFs
setCustodyAddress() for reserve wallets
pause()/unpause() for control

The Stablecoin Delegate ensures compliance with the issuer’s policies, such as mint/burn authorization, reserve asset eligibility and pricing.

3. Swap Contract Update: The Stablecoin Delegate’s address is registered with the Swap Contract using admin functions, making the stablecoin available as a liquidity source for eligible Treasury assets.

4. Ongoing Operations: Issuers manage parameters dynamically (e.g., updating Price Adjustments and eligible reserve assets based on strategic priorities or market conditions). Uniform Labs provides monitoring tools and upgrade paths.

Stablecoin Issuer integration and testing requires 1-3 weeks and provides issuers access to a broad tokenized Treasury asset/MMF holder ecosystem, increased distribution, and enhanced treasury management while preserving sovereignty over issuance.

7.3 Balance Sheet Providers

Balance Sheet Providers (e.g., institutions with stablecoin or tokenized asset holdings) integrate to supply liquidity without minting authority, using pre-deposited assets. This role in the protocol and the associated flows are similar to those of Stablecoin Issuers but structured for transfers of existing stablecoins and assets rather than new mints/burns. Balance Sheet Providers earn fees from swaps and yields from underlying assets.

Setup Process:

1. Provider Assessment: Uniform Labs evaluates the provider’s liquidity sources (e.g., stablecoin and asset holdings) and desired parameters (e.g., accepted assets, Price Adjustments).

2. Delegate Contract Configuration: Uniform Labs builds and deploys a Delegate Contract adapted for the Balance Sheet Provider. The Delegate interfaces with the provider’s smart contract or wallet for atomic transfers.

3. Swap Contract Registration: The Delegate Contract address is added to the Swap Contract as a liquidity source.

4. Funding: The Balance Sheet Provider deposits stablecoins and/or assets into its integrated smart contract or wallet.

5. Parameter Specification: The Balance Sheet Provider configures its swap parameters, including eligible assets and stablecoins and Price Adjustment by asset.

6. Ongoing Operation: Balance Sheet Providers can adjust parameters in real time and deposit/withdraw assets and stablecoins. Uniform Labs assists with optimizations, such as integrating monitoring for balance thresholds.

Setup and testing takes 1 week and allows providers to participate in the network, benefiting from transaction volumes and fees without issuance risks.

8. Legal, Regulatory, and Compliance

Multiliquid operates as a neutral infrastructure layer, not custodying or handling assets, performing transactions, or requiring registration as a broker-dealer, exchange/ATS, or money services business under U.S. law. It enforces asset and stablecoin permissions based on issuer onboarding and whitelisting requirements.

9. Example Flows Enabled by Multiliquid

24/7 Liquidity for RWAs: Investors, curators and DeFi lenders can instantly exchange tokenized assets for stablecoins via Multiliquid. Swaps are fulfilled via asset transfer from user to Liquidity Provider in exchange for stablecoins. This flow avoids redemption by the asset issuer, enhancing RWA functionality while and improving issuer economics.

Yield on Idle Balances: Foundations, DAOs, stablecoin payments platforms, liquid funds, exchanges, and stablecoin neobanks can instantly sweep idle stablecoins to risk-free assets and back to earn yield via Multiliquid’s API or UI.

Spend Tokenized Money Market Funds: Platforms holding customer accounts with eligible assets can integrate with Multiliquid via API to facilitate spending and payments. Tokenized Treasury assets can be programmatically converted to spendable stablecoins at the moment of transaction across a range of payment methods (debit card, peer-to-peer payment, ACH, SEPA, etc.).

10. Conclusion

Multiliquid enables scalable, compliant, 24/7 liquidity and yield access for on-chain finance, supporting efficient cash, treasury, collateral and investment management across a wide range of use cases.

Future expansions include broader asset integrations, simplified yield access, and cross-chain swaps.

For inquiries: team@multiliquid.xyz