Tokenization makes it possible to fractionalize almost any asset and put it onchain, so a Treasury bill, a bond or a slice of real estate can be held in small pieces by anyone. But access to assets is only half the story. Investors also need to diversify. Putting everything into a single asset concentrates risk, while spreading capital across several types of assets helps manage it.
Turning individual tokenized assets into something other people can hold, such as a basket, an index or a strategy, still takes a lot of manual work. Most of it happens in spreadsheets and private chats, and the people who would use the result never see it.
Engine is built to close that gap, and it’s now coming to Avalanche so builders in the ecosystem can start using it.
What Engine is
Engine is a permissionless protocol for building, composing and distributing onchain financial products from tokenized assets. It rests on three pillars:
Products. Turn tokenized assets into baskets, indexes and ETF-style products that anyone can hold.
Strategies. Build custom strategies such as looping and delta-neutral positions, packaged so others can access them in one step.
Distribution. Publish what you build to Engine’s marketplace, share it with your community and earn from it like an ETF manager, but onchain. Creators set a mint fee, a management fee, or both, each capped at 1% (100 bps). Fees are taken from the product’s value, never billed to holders, and creators can claim them at any time with full onchain visibility.
Avalanche Assets as Building Blocks
Engine runs in two directions. It brings new tools to the Avalanche community, and the Avalanche ecosystem brings assets to Engine.
Avalanche is home to a growing set of tokenized real-world assets, stablecoins and DeFi protocols. On Engine, each of these becomes a building block. A creator can combine them into a basket, wrap them in a strategy such as looping or a delta-neutral position, and distribute the result to an audience that wants to hold it.
Say a builder wants a lower-risk product for people holding cash. They pick a tokenized Treasury position and a yield-bearing stablecoin on Avalanche, set the weights, wrap them in a strategy and publish the basket to the marketplace. Their community can then hold the whole thing in one step.
Every product built this way creates new demand and activity for the Avalanche assets underneath it. In the example above, both the Treasury position and the stablecoin gain a new reason to be held and moved on the network. The more creators build, the more those assets get used.
The roadmap is shaped by the community. Engine will work with Avalanche builders to learn which assets and strategies they want most, and prioritize those first.
What this brings to the Avalanche community
For the Avalanche community, this opens a practical path from learning to building. Anyone can build a first basket or strategy, publish it to the marketplace and earn from it. Builders gain a new way to put their ideas in front of an audience, and the feedback they give as early users will shape the protocol itself.
Avalanche’s tokenized real-world assets, stablecoins and DeFi protocols gain a new use as building blocks, and each product built from them creates fresh demand and activity for those assets on the network.
In short, the community gets tools to design financial products, a way to distribute them, and a direct say in which Avalanche assets Engine prioritizes first.
Get Involved
Engine is open to builders, and the best way to understand it is to use it.
Test Engine. Join the Engine Discord at discord.gg/xzHfp7fw5 to get hands-on, build your first basket or strategy and share feedback that shapes the protocol.
Follow along. Follow @EngineRWA on X for product updates and announcements.
Learn more. Visit engineprotocol.io to see what Engine is and how it works.
If you’ve ever wondered what you would build with a basket of Avalanche assets, now is a good time to find out.
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