# How It Works (QQQAI Tokenization Process)

QQQAI employs **RWA tokenization** by holding fund shares through an **SPV (Special Purpose Vehicle)**, which then tokenizes the shares on the BlockRock platform to generate **QQQAI Token ($QQQAI)**.

<figure><img src="/files/leyyIHeiA30Jq9tIeE4B" alt=""><figcaption><p>QQQAI Tokenization Workflow</p></figcaption></figure>

### **Asset Custody & Token Issuance**

1. An **SPV (Special Purpose Vehicle)** subscribes to QQQAI fund shares.
2. The SPV custodies fund assets to ensure compliance and manages capital accounts.
3. The SPV issues QQQAI Token ($QQQAI) via the RWA platform (BlockRock) for Web3 investors to subscribe to.
4. Coinbase Custody safeguards the fund’s stablecoin holdings, ensuring asset security and enabling fiat conversions.
5. The SPV manages QQQAI Token ($QQQAI) redemptions, allowing eligible users to exchange tokens for fund shares.
6. Independent auditors regularly audit the SPV’s assets and publish reports to ensure financial transparency.

### **Token Subscription & Trading**

1. **QQQAI Token ($QQQAI) Subscription**: Investors subscribe using USDC, USDT, or fiat.
2. **Secondary Market Trading**: QQQAI Token ($QQQAI) is tradable on platforms like Uniswap and BlockRock.

### **Liquidity Management Solutions**

1. **DEX Liquidity**
   * Establish $QQQAI/USDC pools on Uniswap, Balancer, and Curve to enhance market depth.
   * Market makers (MMs) provide liquidity to improve trading efficiency.
2. **DeFi Protocols**
   * **Lending**: Plans to enable $QQQAI as collateral on Aave, Compound, and Ondo Finance for stablecoin borrowing.
   * **Staking**: Users can stake $QQQAI on DeFi protocols to earn yields.
3. **OTC Redemptions**
   * MMs, hedge funds, and VCs provide OTC liquidity support.
   * QQQAI Fund is a closed-end fund with quarterly redemptions. To enable 24/7 liquidity for *QQQAI*, *weallocate* 10 million USDC for instant redemptions, ensuring on-demand liquidity.


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