1.3 A Protocol-Layer vs Marketplace-Layer Design

While most tokenization platforms focus on being marketplaces: listing assets, matching buyers and sellers: Parax functions first and foremost as a liquidity protocol for physical value. It is a protocol-layer infrastructure that enables asset tokenization and secondary market interaction to occur as a native, composable primitive across any connected dApp, marketplace, or liquidity venue.

At its core, Parax provides:

• A global verification framework stratified by asset class and value tier,

• A minting protocol that issues ERC-721 NFTs and ERC-20 fractional wrappers,

• An embedded liquidity engine enabling instant listing, OTC transfer, or DeFi collateralization.

This design paradigm allows any third-party interface: wallets, institutional vaults, DeFi lenders: to integrate Parax as the backend tokenization layer, unlocking unprecedented interoperability across RWA ecosystems.