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)
- Trade Asset token 1
- Trade Asset token 2
- Trade Asset token 3
- Trade Asset token 4
(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
Incentivise for adding Over - collateralization, Stability Mechanism with
- Trade Asset Token 1
- Trade Asset Token 2
- Trade Asset Token 3
The core purpose of this architecture is :
- XDC becomes a preferred layer1 protocol for real world backed assets, trade assets
- 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)
- XDC becomes a preferred layer1 for Institutional DeFi/TradeFi to generate reasonable and dependable yields coming from Trade Finance, MSME origination
- Institutions use XDC as a base asset for trading/liquidity of real world backed tokens, Trade Asset tokens etc.