One year on, Loaf V1 has reached stability. Foundational infrastructure to trade the physical world with unprecedented liquidity, settled on-chain in real time. What future versions will be built on. Alongside it, a breakthrough primitive for securitizing physical assets, pioneered by Loaf with leading global law firm Baker McKenzie: the Loaf Property DPA. A step toward realizing Robert Shiller's 1993 proposal of perpetual futures on such previously illiquid real assets. A massive thank you to our earliest users, who put Loaf through its paces in private beta, many of them now testnet millionaires. Now, with a waitlist reaching the hundreds of thousands, we're entering our journey's next phase: Public Beta. And with it, a world-first event, announced 1st August. Stay tuned. Loaf's mission is to build the open, on-chain infrastructure for all the physical world, to make the world's oldest asset class behave like the world's most modern, and to extend ownership of the real world to every person on Earth.

Real-world events are now getting priced in incredibly fast in proxy markets like oil, Treasury yields, stocks, crypto, etc. The recent oil moves tied to Saudi Arabia halting several oil operations are a good example. I tracked how the moves played out in @loafmarkets’ Ras Tanura market: 1. Two days ago, attacks halted Saudi energy operations and pushed oil close to $100 per barrel. 2. As it happened, Ras Tanura (the world’s largest oil export terminal) jumped 52.1% in market price. An hour later, it was up 113.2%. 3. Then, when oil crossed $100 per barrel, the market rose another 31.7%. You can see the connection pretty clearly. When the oil backdrop changes, this market reprices fast. Some people are saying that the bull case for prediction markets is to let people trade events without basis risk, but I'm not sure that I agree it applies to ALL events. I’m honestly amazed at the breadth & efficiency of markets we can trade nowadays.

For the first time, we're seeing early glimpses of real-time price discovery in physical markets. We've shared a price action visualisation of Saudi Arabia's largest oil refinery, Ras Tanura, trading on Loaf's testnet against the backdrop of the escalating Gulf conflict and Iran war. The movements have been produced by 5,000 traders in Loaf's "Trade the News" competition round since it launched 72 hours ago. Below is a high level on how one may approach pricingthe oil refinery & terminal.

A summary of our Loaf Loaf Liquidity Provider V1 paper More soon

Research On RWA Genius Products/Engineering Episode 2: Six Mechanisms Native to Loaf Markets(@Loafmarkets ) I. The Loaf Property DPA Physical assets have resisted financial engineering for the same reason for centuries: the legal act of transferring ownership is expensive, slow, and jurisdiction-specific. Stamp duty. Land transfer tax. Notarial requirements. Title registry filings. Each one compounds when you try to build a tradeable instrument on top of a property. The friction is not a technical problem it is built into property law itself, which exists to make ownership transfers consequential and deliberate. Loaf resolved this by reaching for a different legal object entirely. (cite index=“33-1”>Each listing on Loaf is a regulated security rooted in a deferred purchase agreement. The contract gives full exposure to the asset’s economics capital movement and yields, paid in real time as a dynamic coupon. On the capital side it works like a future: a set time at which the contract resolves in cash, backed by a sale of the asset or a payout from its owner. Settlement is not a fixed price set upfront it tracks the underlying asset’s valuation at resolution, and the contract can be rolled and extended. It is backed 1:1 by a first ranking lien on the property’s official land title, issued under a financial services licensed entity. The DPA is a derivative. It creates economic exposure to the asset’s value without requiring ownership to transfer. The property stays on the owner’s balance sheet. The holder receives full economic participation price appreciation and real-time yield through a contract structured under financial services law rather than property transfer law. That is not a marginal efficiency gain. It is a categorically different regulatory pathway, one that does not trigger the cascade of transfer-related costs that have made every fractional ownership model expensive to operate at scale. The first-ranking lien is the security mechanism. It sits on the title itself ahead of other creditors, registered on the official land record. If resolution arrives and the owner fails to deliver the cash settlement, the lien provides recourse against the physical asset directly. The holder’s claim is not against a management entity that could become insolvent or mismanage the underlying property. It is against the land title, which the management entity does not control. (cite index=“33-1”>The instrument follows Nobel laureate Robert Shiller’s 1993 perpetual-futures framework, opening price discovery, speculation, and real-time markets on illiquid assets such as property.A DPA is a financial instrument which derives its value from the value of another reference asset. It is a financial contract between two parties where one party undertakes to deliver to the other some pre-determined delivery assets rather than cash at the maturity of the contract.docs.loafmarkets.com/en/prop… doi.org/10.1111/j.1540-6261.… II. The Dynamic Coupon Every continuous financial market has a mechanism for keeping its prices anchored to some reference. In equity markets, arbitrageurs continuously buy and sell to keep prices aligned with fair value estimates. In crypto perpetual futures, the funding rate periodic cash payments between longs and shorts pulls the contract price toward spot when they diverge. (cite index=“77-1”>Perpetual futures never expire. There is no settlement date where the market is forced to close the gap between perp and spot. The funding rate is the mechanism that prevents the perp price from drifting indefinitely away from the underlying.The Dynamic Coupon is funding-rate-like, paid in real time to holders: when the trading price sits below the asset’s last independent public valuation, it steps up, and vice versa. The deeper the dislocation, the higher the yield paid to holders.Strategic exposure is made viable by each asset’s Dynamic Coupon: the carry for holding the asset changes as its price moves away from its most recent public property valuation.The FVE produces a live fair value estimate for every listed asset in real time, which the Market Making Engine quotes around. The estimate combines market action with a proprietary pricing model built for assets that have never had a live price: hedonic features and fundamentals read against decades of comparable sales, macro conditions, real-time news. Fundamentals anchor the price; market dynamics discovers it.Shiller proposed in 1993 for constructing indices that would settle perpetual futures: hedonic repeated measures indices based on infrequent measurements of nonstandardized items, controlling for quality change by following individual assets through time and accounting for measured quality variables.docs.loafmarkets.com/en/prop… IV. The Initial Property Offering (cite index=“35-1”>Primary sales on Loaf, known as Initial Property Offerings, are events where properties are first offered to the public. A percentage of a property between 1 and 100% is tokenized and offered to wholesale investors. For smaller amounts, buyers can purchase on the market once the property is trading live.Only accredited wholesale investors can purchase property tokens in primary sales, with a minimum purchase of 1,000 units required. For smaller amounts, buyers can purchase on the market once the property is trading live.The Loaf Liquidity Provider is Loaf’s in-house market maker. It supplies liquidity to the physical assets listed on Loaf Markets. LLP trades with Loaf’s own capital. Position limits, capital sizing, and the Reserve Fund are designed so that quoting continues through adverse dislocations.The MME quotes firm, two-sided prices on every listed market throughout the trading day, dealable the moment they are shown. Its strategies were built for markets with no reference price, no hedging venue, and no trading history. It is designed to stay on both sides of the book in conditions that would drive a conventional desk out.Because no hedge venue exists, LLP does not hedge externally. Inventory is managed through strategies built on its pricing model and the carry on the Dynamic Coupon.LLP has no access to user funds. Its trading capital, the Reserve Fund, and user assets are segregated at all times.Coming soon: a vault through which users will be able to deposit alongside LLP and share in its market making returns and yield from carry. Details will be published ahead of its launch.