Breaking Through the Financialization of Antique Assets via On-Chain Mechanisms

Constructing a New Paradigm of “Super IP + Institutions + Unlimited Liability”

Zhu Weisha, January 15, 2026

Abstract

The fundamental bottleneck in the financialization of antique assets lies in the lack of an underlying trust mechanism. This paper proposes a breakthrough framework: drawing from and strengthening the trust-generation logic of the stock market to construct a credit closed-loop centered on “Unlimited Liability” and backed by multiple institutions. This framework deeply integrates the narrative value drive of “Super IP,” the efficient trading infrastructure of “Chainless AMM,” and the active stabilization mechanism of Market Making Growth Funds. Its aim is to create a liquid, credibly priced, and relatively risk-controllable on-chain antique capital market, facilitating the explosion of the cultural asset RWA sector.

I. The Fundamental Proposition: Trust Conversion is the Primary Task for Breakthrough

The slow progress in antique financialization stems from the core problem of lacking a multi-layered, professional, and accountable third-party trust chain akin to the stock market. A high-quality company going public undergoes scrutiny and endorsement from investment banks, accountants, lawyers, exchanges, regulators, and funds, forming a clear, responsibility-defined ecological closed-loop.

In contrast, the antique market consistently lacks a similar standardized credit conversion process at the two critical junctures of “Authenticity Verification” and “Value Consensus.” Where should market trust be anchored? The answer lies in reconstructing the roles of key institutions and embedding “Unlimited Liability” as the core lever.

Therefore, the path to breakthrough is not a simple transplantation of the stock model but designing a completely new mechanism that aligns with its cognitive framework but imposes stricter responsibility constraints: a group of rigorously vetted authoritative institutions jointly undertake the credit endorsement function, using unlimited liability clauses to thoroughly compensate for the trust deficit of antique assets in verification and valuation.

II. Mechanism Blueprint: Core Design of the On-Chine Antique Capital Market

Leveraging the immutability of blockchain and the automatic execution of smart contracts, we can construct a transparent and efficient trading market for antique assets. This ecosystem mainly consists of the following parts:

1. Trading Engine: Automated Market Maker (AMM) Mechanism

1) Basic Principle: AMM is the core of decentralized finance (DeFi). It uses mathematical formulas like “X × Y = k” to create on-chain liquidity pools that automatically provide two-sided quotes, enabling 7×24 instant trading without counterparties.

2) Challenges Faced: Traditional on-chain AMMs have several major drawbacks: high slippage (unsuitable for large trades), impermanent loss (losses during price declines), vulnerability to MEV (Miner Extractable Value) attacks and other hacker manipulations, making them less friendly to large transactions and institutional capital.

3）Innovative Solution: “Chainless” AMM Enhancement Mechanism. Based on modifications to the NEAR blockchain——removing the on-chain Gas fee burden (pool transaction fees are retained), and enforcing that all transactions pass through NEAR-native Relayers for trusted relaying and ordering, constructing a private trading channel with “Zero MEV Exposure” from the source. This significantly enhances security, throughput, and cost-efficiency, providing reliable technical infrastructure for institutional-grade capital. Although the cryptocurrency space has similar solutions, they are limited by technical structures, for example: Innovations like Uniswap V4 + Angstrom (application-layer ordering and application-specific mempools, etc.) 2025-2026, only mitigate rather than eradicate these issues. This leading technology serves as a bridge allowing ordinary users to trade with peace of mind and institutions to confidently inject liquidity.

2. Stabilizer and Growth Engine: Functions of the Market Making Growth Fund

Although AMM provides basic liquidity, antique assets still require active “value discovery” and “price maintenance.” The core functions of the Market Making Growth Fund include:

1. Liquidity Bootstrapping: Antiques face initial liquidity shortages upon issuance. The fund provides early-stage guided purchasing.
2. Price Discovery: The internal value of an antique does not change; it is only influenced by external factors. Retail investors lack sufficient information, making price discovery necessary.
3. Rule-Based Market Making: Trading via AMM is transparent. The fund can conduct market making according to set rules to earn market trust. Referencing the Hong Kong Monetary Authority’s Linked Exchange Rate market-making mechanism, it employs Bollinger Band rules (Refer to DW20 Whitepaper Section 3.8.5). To prevent the market from deducing the fund’s exact buy/sell points, a range is set around the upper and lower Bollinger Bands.
4. Pool Depth Management: Maintaining a liquidity pool thickness of 5%-10% to smooth slippage for large trades.
5. Trend Maintenance: Suppressing extreme market volatility, ensuring a long-term upward trend, and preventing sharp market fluctuations. This addresses the issue of impermanent loss while attracting stable capital like insurance funds.
6. Information Transparency: The Market Making Fund releases market information via the “Market Making Fund Group” within the “National Treasure” community on SimiTalk (a general community software).

3. Token Issuance Method to Attract Market Making Growth Funds

Stocks typically issue only 25% upon IPO. Antiques use a fractional ownership method for on-chain issuance, selling all at once. If the token price has no room for appreciation post-issuance, it holds no appeal for retail investors.

What is a reasonable issuance method for antique tokens?

In the article Establishing the Financial Logic for an On-Chain Antique Market, the author designed a method suitable for antique fractional issuance. Antique issuance is akin to a mature company going public, generally lacking the explosive growth of a seed round. To be attractive, designing for several-fold potential gains aligns with IPO logic. Table 1 illustrates issuance methods using AMM for 3-6x and 10x gain scenarios. For an antique valued at $100 million designed for a 10x gain, the antique holder can only obtain a total income of $66.86 million, with $32.24 million being retail investors’ contribution to building the emerging antique token market. If designed for a 3x gain, the holder can obtain $78.75 million.

Table 1 is illustrative; actual data may differ. The table has several characteristics:

1. Issuance is periodic, not one-time, completely different from stock issuance methods.
2. The overall periodic issuance resembles a Horn shape (flaring outward), with more tokens issued per cycle as cycles increase. Unlike Bitcoin, which issues fewer per cycle.
3. Cycles are based on quantity, not time.
4. The differential (amplitude) between cycles decreases progressively. The differential from Cycle 1 to Cycle 2 is 100%, while from Cycle 9 to Cycle 10 it’s 9%. This implies different investor profiles are needed for each period.
5. Each cycle uses the previous cycle’s price as a floor. The purchase price in each cycle creates significant token accumulation line.
6. The first cycle establishes the liquidity pool. All tokens in this cycle are allocated to the Market Making Growth Fund. The fund obtains the cheapest tokens.
7. Starting from the second cycle, when the token price fluctuates below the issuance price of that cycle, subscription for that cycle automatically closes, and users can only buy from the liquidity pool. Subscription reopens only when the price reaches the trigger price again for a discounted purchase. This automatic supply adjustment mechanism is effective for antiques but not applicable to the stock market.

This scheme is advantageous for the Market Making Growth Fund while providing retail investors with safety through a gradually rising price floor. This design utilizes the characteristic of Bitcoin having a floor but no ceiling.

4. Fund Raising and Exit

Funds have different risk appetites. The first cycle has high volatility, suitable for venture capital funds, while the ninth cycle has almost no volatility, suitable for insurance funds. Assuming a $100 million antique valuation, designing three rounds of fundraising managed by the Market Making Growth Fund. The first round of $12 million can cover capital needs from cycles 1 to 5/6. The second round of $24 million, with $10 million used for principal exit from the first round—the first round’s liquidity pool capital can be taken over by the antique holder, meaning the first round’s principal can be replaced by the second round. The first round’s high profits can be introduced via OTC by the Market Making Growth Fund, with fund holders offering discounts to market demanders. The second round financing pushes the price to cycles 6-8, with exit handled similarly. The third round financing of $48 million targets capital seeking stable returns. Judging from the $32.24 million retail market contribution, the capital required by institutions is less than the design above suggests. Due to the nine-cycle price thresholds creating token accumulation, the required capital should be greater than without thresholds. This also means market manipulation is more difficult than with stocks.

It must be noted that if the antique holder takes over the liquidity pool, they can sell a corresponding portion of the 15% tokens they hold.

5. Value Core: Finding and Shaping “Super IP”

The author’s article “Introducing the “Future”: How Stock Valuation Thinking Reshapes Imagination for Antique Financialization” provides methods for finding antiques with high appreciation potential. The physical form of antiques is enduring; value growth stems from the expansion of external demand, which is driven by “narrative” and consensus. What is a Super IP? Having a story (narrative) grants immense growth potential. An antique without a new narrative is a “fully priced” antique, possessing only the characteristic of natural value growth. The Nine Ding Cauldrons of King Zhou are world-class antiques with stories to be unearthed, thus qualifying as a Super IP.

The “high growth potential” of the antique market is rooted in “market undervaluation discovery”——relying on exceptional discernment and knowledge to discover and validate value underestimated by the market. This includes two levels:

Authenticity Verification: Believing in authenticity despite widespread market skepticism and ultimately gaining recognition.Value Reassessment: Upon confirming authenticity, uncovering unrecognized historical, artistic, or craftsmanship features, thereby defining new value heights. Bitcoin’s rise, for example, currently narrates a store of value story (having changed 7-8 times before). The next narrative could be national strategic reserves. Antiques similarly need such narratives to enhance their value. Upon value reassessment, a new party might buy all tokens and re-list, repeating the aforementioned method by issuing new tokens for value discovery——another round of market undervaluation discovery.

III. Trust Pillar: Constructing an Unlimited Liability System Aligning Rights, Responsibilities, and Interests

1. The “Imperfect” Reality of Trust and the Acceptable Threshold

“The stock market carries risks; invest with caution” speaks to the insufficiency of trust. Even in mature stock markets, trust mechanisms are not absolutely perfect (e.g., Enron, Tether’s audit practices). The key is that market participants find an acceptable trust threshold in the trade-off between risk and reward. This reveals an important principle: the goal of a trust system is not to eliminate risk entirely but to control it within a market-acceptable range through clear arrangements of rights and responsibilities, much like how Binance gained acceptance.

2. The Trust Cornerstone for Antique Financialization: Unlimited Liability Closed-Loop

Based on the above principle, we construct a higher-standard trust closed-loop for antiques, requiring key participants to bear joint, several, and severe unlimited liability:

1. Appraisal Institutions: Must bear unlimited liability for appraisal results, ensuring “compensation if fake.” This is the core trust cornerstone replacing accountants.
2. Insurance Institutions: Provide underwriting for appraisal institutions and antique holders, participate as long-term investors (similar to Vanguard Group) becoming a cornerstone of the antique financial market; simultaneously, be responsible for constructing integrated museum-grade custodial vaults, completing the physical collateralization and preservation of antique assets.
3. Lawyers: Bear unlimited liability for the authenticity of all legal documents, contracts, and asset collateral status.
4. Antique Holders（Sellers）: Must provide full guarantee for the authenticity of the antique.
5. Issuer (Investment Bank-like): As the final credit aggregator and endorser, responsible for auditing the entire credit closed-loop, ensuring enforceability of compensation liabilities. Considering enforcement difficulties, sufficient collateral mechanisms and antique transfer mechanisms are necessary

Conclusion:

• The above responsibilities have overlaps. For instance, if the antique holder cannot provide a guarantee, other institutions must bear the responsibility. Not all need to provide guarantees; the issuer judges the suitability of guarantees and provides the final endorsement.

• The current state of the antique market where “sellers, appraisers, auction houses bear no responsibility” is the root cause of trust deficiency. History shows that even imperfect trust mechanisms (like the stock market) can be widely accepted if rights and responsibilities are clear. Antique asset structures are relatively simple. If the above interlocking unlimited liability system is strictly enforced, the established trust logic could be more robust than that of the stock market. Through the quadruple revolution of “Super IP” igniting value narrative, “Institution Cluster” building composite credit, “Unlimited Liability” underwriting ultimate risk, and “On-Chain Mechanisms” ensuring operational efficiency—narrative, credit, risk control, technology—we have charted a feasible roadmap for the on-chain financialization of antique assets. This is not merely a vision for a trillion-dollar new market but a fundamental reshaping of how cultural asset value is defined and circulated.

The blueprint is drawn. The breakthrough is imminent.