Tharwa

Tharwa is transforming the on-chain RWA landscape with a distinct approach that combines multi-asset fund tokenization and a novel RWA-backed stablecoin. Its competitive edge rests on several core pillars that set it apart from existing protocols.

Unlike single-asset-focused platforms, Tharwa enables tokenization of diversified portfolios that blend real-world assets such as gold, UAE real estate, oil, and Treasury bills. Each asset category has a capped allocation—33% for most assets and under 3% for volatile ones like oil—ensuring a balanced, lower-risk exposure. This structure backs thUSD with a broader and more stable foundation.

The protocol introduces a new kind of stablecoin model with thUSD. Rather than relying on algorithms or over-collateralized structures, thUSD is supported by tangible, real-world value. It avoids the pitfalls of de-pegging and inefficiency by incorporating AI-powered peg defenses and yield optimization, delivering more consistent performance in volatile markets.

Operating out of the UAE, Tharwa adheres to local regulations and is designed to meet Sharia compliance. This structure unlocks access to capital that requires adherence to Islamic finance principles and positions Tharwa within a key global financial center. Necessary incorporations and approvals are in motion to support this framework at launch.

Unlike passive protocols, Tharwa includes an embedded hedge fund structure within its DeFi design. Through AI and quantitative optimization, the protocol actively manages portfolios to generate risk-adjusted returns via sthUSD. This dynamic approach provides yield opportunities that single-asset models and traditional stablecoins can’t match.

To manage the complexity of diversified portfolios, Tharwa applies advanced risk controls focused on extreme downside scenarios. It uses Conditional Value at Risk (CVaR) to model the worst 5% of outcomes and optimize against them. As a result, drawdowns are significantly reduced—historically around -5.59% compared to -8.05%—leading to stronger, more reliable performance metrics.

Portfolio management is automated and continuously optimized through Tharwa’s Confluence Engine. This AI-powered system rebalances assets based on real-time market signals, outperforming static allocation models by improving both returns and risk management over time.

Security and transparency are integral to the protocol’s foundation. All code is open-source and thoroughly audited. The system includes multi-signature authorization, circuit breakers, and integrations with trusted oracles like Pyth and Chainlink. Around-the-clock monitoring ensures users have real-time insight into the platform’s operations.

By uniting dynamic asset management, regulatory integrity, AI-driven strategies, and full transparency, Tharwa delivers a stablecoin and RWA protocol capable of navigating real-world volatility while maintaining a strong foundation of trust.