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🏦 Real World Assets & Institutional Investors
The enthusiasm for RWA’s is shared widely in the financial sector, with a study by Celent Research and BNY Mellon indicating that 91% of institutional investors are ready to delve into tokenized assets. 97% of these investors believe that RWAs will be transformative for asset management.
The Boston Consulting Group (BCG) forecasts that the market for tokenizing illiquid assets could surge to $16 trillion by 2030. Euroclear's tokenized securities issuance, which started with the World Bank's 100 million euros digital bond, is a testament to this trend. MakerDAO's revenue, with 67% coming from RWAs according to Desh Saurabh, underscores the financial viability of these assets.
Institutional interest in tokenized assets is not just a passing trend. At the Real-World Asset Summit hosted by Centrifuge in New York, the discussion centered on how disruptions in traditional finance and underserved markets are fueling the institutional adoption of RWAs. Despite initial hesitancy, many institutions are warming up to the concept by starting with private blockchain networks, which may lead to engagements with public networks in the future.
JP Morgan's Tokenized Collateral Network, used by entities like BlackRock, and the emphasis on stable, less volatile assets highlight this shift. Furthermore, Solana's venture into tokenized treasuries through Maple Finance aims to offer competitive yields from U.S. Treasury bills, reflecting a persistent expansion of RWAs regardless of broader market conditions. Additionally, the introduction of staked (sFRAX) by the Frax protocol, which generates yield from U.S. Dollar deposits and Treasury Bills, demonstrates the increasing demand for on-chain representations of real world assets.
Looking ahead, sectors such as agricultural finance are poised for disruption. With farm lending on the rise and the number of farm banks in decline, the sector is ripe for a financial revolution. These developments suggest that substantial change is imminent in how assets are managed and investments are made, particularly in the RWA sector.
Read the full thread here: https://twitter.com/landxfinance/status/1719731731257872585
🎙️ Farmers Market #46: The ETH Flippening
The "ETH flippening" refers to a hypothetical scenario in the cryptocurrency industry where Ethereum (ETH) would surpass Bitcoin (BTC) in market capitalization, becoming the leading cryptocurrency in terms of total value. This concept emerged from the belief that Ethereum's broader utility as a platform for decentralized applications (dApps) and smart contracts could drive its growth to a point where it overtakes Bitcoin, which is primarily seen as a digital store of value and medium of exchange. The flippening is closely watched by crypto enthusiasts as a potential indicator of a fundamental shift in the crypto ecosystem, reflecting Ethereum's technological advancements, adoption rates, and the increasing importance of its native token, ETH.
Listen again: https://twitter.com/landxfinance/status/1719718113522991599
🪙 xTokens & cTokens
LandX is built on two core tokenized assets: commodity tokens and perpetual commodity vaults, integral to its mission of revolutionizing decentralized agricultural derivatives. Here's an insight into their roles:
xTokens function as perpetual commodity vaults on LandX, allowing holders to claim yields by staking them. For instance, staking one xSOY token on the platform would yield one cSOY token annually.
cTokens, on the other hand, are tokens that mirror the price of physical commodities like wheat, soy, rice, or corn. The value of one cWHEAT token is pegged to the market price of one kilogram of wheat.
The valuation of xTokens hinges on the market's perception of the future yield’s worth, with the potential for value growth as commodity prices rise against the USD. They add a diversifying element to investment portfolios, given their lack of correlation with traditional stock and cryptocurrency markets.
In contrast, cTokens fluctuate with the prices of their respective commodities, serving as a novel form of collateral within DeFi systems and providing a safeguard against the inflation of fiat-based stablecoins.
xTokens are designed to provide long-term upside and an expected perpetual yield of about 5-15% APR per year, while cTokens aim to maintain minimal volatility by closely tracking commodity prices.
Operating on the Ethereum blockchain, LandX offers a platform to earn 'Real Yield' derived from actual production and introduces agricultural Real-World Assets (RWAs) to the blockchain, fostering sustainable DeFi incentives.
Learn more about how LandX can help you diversify your portfolio with inflation hedged assets that offer yield based on real world production
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