Lifecycle

Lifecycle — From Bond to LEGO® and Back

Tokenize → Split → Compose → Merge → Unwrap

TL;DR

Start with a real-world asset. Turn it into an on-chain token. Split it into P / C / S. Mix and match however you like. When you are done, rejoin the pieces and exit back to the original asset.

Five actions, fully reversible, at your own pace.

The 5 Actions

The 5 actions are independent, you may only need to perform one.

1. wrap() — Tokenize the asset

   • What you do: Lock a verified RWA into AquaFlux.

   • What you get: An on-chain position (aqToken) with clear maturity, coupon schedule, and S-coverage.

   • You can: hold it, or move to step 2 to split.

2. split() — Create P / C / S

   • What you do: Turn the aqToken into three tokens:

     • P = Principal (redeems 1.00 at maturity)

       • C = Coupon (income stream)

       • S = Shield (first-loss + surplus streams)

   • You can: trade them, LP them, or use them as collateral (market-dependent).

3. Compose — Build your payoff

   • What you do: Mix P / C / S to match your goal:

     • P only → principal + time value

     • C only → income

     • S only → higher carry with first-loss risk

     • P + C → “classic bond”

     • P + S → “cash-plus”

     • C + S → “enhanced carry”

     • ...

   • You can: automate strategies or just hold what fits your view.

4. merge() — Rejoin the pieces

   • What you do: Combine P / C / S back into an aqToken.

   • Why useful: simplifies positions, prepares for unwrap, or resets strategy.

5. unwrap() — Exit back to the original asset

   • What you do: Convert the aqToken to the off-chain claim per pool rules.

   • When: at maturity or as allowed by the pool (some pools only settle at maturity).

What you can do at each stage

• Trade anytime (T+0): buy/sell P / C / S in the pool.

• Provide liquidity: earn fees and incentives (where offered).

• Borrow/lend (market-dependent): P often gets higher LTV, C medium, S low/ineligible.

• Manage duration: roll P to nearer maturities; time coupon calendars with C.

FAQ

Do I have to merge to redeem P? No. P redeems 1:1 at maturity. Merging is optional.

Can I exit early? Yes—sell P / C / S in the pool at market price (T+0), subject to liquidity.

Is S principal-protected? No. S is first-loss; it earns surplus streams but can be impaired.

Who sets parameters like S-coverage and fee shares? Each pool defines them. Check the pool panel before acting.