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 )
https://borrow.yodaplus.net/?network=apothem

Primary Collateral coin : (Like ETH)
XDC

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.