# How It Works

RWA Clear is a two-sided marketplace built on top of Upshift's vault infrastructure.

**Liquidity Providers** deposit USDC into an Upshift vault. Their capital funds instant redemptions and earns yield in return.

**RWA Holders** submit their tokenized assets (e.g., USCC) and receive USDC instantly, minus a small transparent fee.

#### Redemption Steps

1. The holder approves their RWA tokens to the redemption contract
2. The holder submits the tokens and specifies a minimum USDC output (slippage protection)
3. The contract fetches a live Chainlink oracle price
4. It computes the USDC equivalent and deducts the spread fee
5. USDC is delivered to the holder — all in one transaction

#### Liquidity Management

USDC deposited by LPs does not sit idle between redemptions. It is automatically deployed to an ERC-4626 yield vault (e.g., Morpho) to earn lending yield. When a redemption occurs and more USDC is needed than the contract holds in reserve, it automatically pulls the deficit from the yield layer within the same transaction.


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