Protocol Overview

How L4VA Works

Overview

The L4VA Protocol is designed as a decentralized protocol that provides a no-code, open source framework for individual participants to create and customize smart contract Vaults where tokenized assets (NFTs, RWAs, FTs) can be sent and then fractionalized into fungible tokens which represent the governance, control, and proceeds generated by those assets ("FTs").

There are three key user journeys on L4VA:

1. Vault Creation: Vaults are user-configurable smart contracts ("SC") that allow users to send on-chain assets (NFTs, FTs) to the SC, to be locked until certain criteria are met, or until the transaction is cancelled. Users who establish the Vault SCs are the "Admin" users of each vault.

2. Fractionalization & Investment: The process by which 3rd party users will send ADA to the SC and receive newly minted fractional tokens ("FTs") in exchange for the ADA, based on the settings and criteria established by the Admin.

3. Governance: The process by which FT holders can exhibit ownership functions impacting the assets held in the SCs.