Developers Forum for XinFin XDC Network

Atul Khekade
Atul Khekade

Posted on • Updated on

Proposed TradeFi on XDC

Recently there has been some confusion related to launch of a trade asset token (related to an ecosystem partner) Its role and importance and priority over XDC. Also the role of such tokens as a value addition to XDC.

There are 10+ trade asset backed tokens coming from real world originators/trade finance institutions on XDC Network in the near term.

Here is how we envision the Real world Institutional DeFi (TradFi) will work on XDC :

Real world interest generating tokens : (Also Stability Tokens, act as stable-coin that generates interest and come from regulated entities)

  1. Trade Asset token 1
  2. Trade Asset token 2
  3. Trade Asset token 3
  4. Trade Asset token 4
  5. ..

(Using current stable coin minting product developed by yodaplus. Its on testnet and under testing )

Primary Collateral coin : (Like ETH)

Algorithmic Stable-coin : (Like DAI)
UXD (Minted with 200-(or any percentage decided by governance)% collateral of XDC)

Governance/Incentivizing token : (Like MAKER)
XYZ, Governance token

Incentivise for adding 1:1 against stable assets for UXD

  • CGO
  • USDC
  • USDT
  • BUSD

Incentivise for adding Over - collateralization, Stability Mechanism with

  • CGO
  • Trade Asset Token 1
  • Trade Asset Token 2
  • Trade Asset Token 3
  • USDC

The core purpose of this architecture is :

  1. XDC becomes a preferred layer1 protocol for real world backed assets, trade assets
  2. XDC can be staked, lent, borrowed to create an algorithmic stablecoin that would be backed and over-collateralised with stable assets closely tied to real world (unlike speculative ones)
  3. XDC becomes a preferred layer1 for Institutional DeFi/TradeFi to generate reasonable and dependable yields coming from Trade Finance, MSME origination
  4. Institutions use XDC as a base asset for trading/liquidity of real world backed tokens, Trade Asset tokens etc.

Discussion (2)

akhekade profile image
Atul Khekade Author

I think the point I simply wanted to highlight is TVL in terms of XDC.

The biggest question the community asks is how tokens like TRADA are helping XDC, the coin.

We are encouraging developers of these projects to follow standards in terms of Total Value Locked (TVL) growth proportionate to the growth of tokens like TRADA.

E.g. if TRADA issuance is 5 Mil USD worth, then TVL of XDC (the coin) should be 7.5Mil (in XDC terms)

XDC is the core asset of XDC ecosystem and that should be intrinsically locked

raynaldo_martine_22fe3535 profile image
Raynaldo Martine

A huge fear for the layman is seeing “algorithmic” stablecoin, because of the LUNA fiasco. Is this different because it is “not” speculative? Was LUNA a speculative algorithmic project? Hope I’m asking this correctly. I am researching, learning, and advising all of my family members, and my #1 pick is XDC.