A commodity super-cycle could be primed in 2023 and RWA will ride it.
@GoldmanSachs points to a strong outlook for commodities given constrained raw materials and a perfect macro environment.
Don't take your eyes off this, for it may be one that galvanizes this mega cycle🧵
1/ I've hung out around the @landxfinance team to bring you deep insights that they have shared with me to dominate the RWA space.
1️⃣About Landx
2️⃣RWA narrative
3️⃣Building a RWA lego future
4️⃣Legal challenges
5️⃣Partnerships
6️⃣Roadmap
2/
1️⃣About Landx
LandX aims to be the marketplace for agricultural assets and tokenising them on-chain such as WHEAT, SOY, CORN, RICE, which are widely traded.
Investors can but into a basket that consists of these assets with equal weights.
3/ Their on-chain commodities are built around 3 parties:
▫ Farmers; get business financing from Landx's investors
▫ Validators; onboards new farmland and legal processes between farmers and Landx
▫ Investors; deposit into Landx perpetual commodity vaults
4/ Each party earns a fee by playing their part in this tokenisation process.
▫Farmers: pays Landx a rent (crop-share) for land usage
▫ Validators: receive a 1% commission
▫ Investors: earns promised APY
$LNDX stakers earns protocol revenue
5/
2️⃣RWA narrative
This narrative might be slow to mature in Defi, but I am certain that it will have a second run.
Here's my take on the RWA landscape. You might have read it already so what matters here more is what the Landx team thinks.
6/
🏞️ Landx point of view
RWA story is taking off as new concepts and protocols are put into practice on various blockchain networks.
While investors want greater stability and a reliable source of profits the can't forget the rollercoaster ride of last year.
7/ There's always the same same few longstanding asset but this is set to change the mood as RWA offers a new source of value.
Landx see RWA as a tool that diversifies investment portfolios and opening the flood gates for liquidity into the cryptocurrency market.
8/ This move towards real-world assets is intriguing, and Landx is well prepared for how RWA will evolve and will continue to shape its influence in Defi.
9/
3️⃣Building a RWA lego future
Tokenization gets interesting when we think about the interaction between assets and on-chain.
Imagine a future with RWA tokens being infused into Defi apps. Pretty bullish on the future potential.
10/ Landx have 3 tokens with the first 2 being fundamental to building a lego block future:
🟡xTOKENS are minted when crops grow. Farmers sell and investors buys them.
🟡xBASKET is an index token that represents a basket of equally weighted xTOKENS.
11/
🟡cTOKENS represents yields on xTOKENS. They are linked to RWA commodities prices with Chainlink oracles. You receive cTOKENS everyday rather than at the end of 1 year.
12/
🏞️ Landx point of view
Core team at Landx see their core products being xTOKENS and xBASKET as lego pieces that will easily be integrated in other protocols and used as yield bearing assets by the defi natives.
13/ Non-inflationary yield is what Landx brings to the table, in the end you are paid in terms of agriculture commodities.
But Its always a challenge to introduce a new asset class in DeFi.
14/ To bridge this gap, Landx will build good content around their product and educate people regarding the RWA space.
So, people will be able to develop their own conviction towards this new asset and create a sensation within their communities.
15/
4️⃣Legal challenges
RWA here is a tricky asset to tokenize because it touches upon issues regarding legality. And the law always aim to protect people's interest from bad actors.
Landx cannot escape compliance issues and they understand it as well.
16/
🏞️ Landx point of view
Landx has a legal team that helped them to navigate through the compliance landscape.
But mass adoption is still being hindered. The regulatory frame work in certain jurisdictions are unclear and Landx's products can't be offerred there.
17/
5️⃣Partnerships
Here are the current partnerships:
@GammaStrategies
@MatrixedLink
@MentholProtocol
@RevestFinance
@Tide_web3
@Quantstamp
@Hold_Station
@xhashtagio
Its already looking strong now based on what they have but could more be hidden under their sleeves?
18/
🏞️ Landx point of view
They have a big pipeline of partnerships that are pending for integration. I can't share the names until they are official, but you can expect some prominent og protocols and new ones to join thier partners list.
19/ Landx will work on further decentralization (as far as its possible in this stage) i.e. decentralized proposals to acquire new farmland
Partnerships with analytics provider here is of their interest.
20/ The team wants to be transparent while presenting critical data to its users.
They are also in active discussion with a partner to build an insurance product that would alleviate the risk for the real world farmers.
21/
6️⃣Roadmap
They are on goerli Testnet for some time though the dapp is basically ready to deploy. (get in now while you can)
For fundraising, private round is closing and they will be moving onto the public sale.
22/
🏞️ Landx point of view
Don't worry as there are more opportunities to participate as community members. After the tge, they'll deploy our first products and the partnership integrations will kickstart.
In the near term, the team is clear on what they set to achieve.
23/ Landx team will work on building cross-chain capabilities and liquidity.
Another aspect is security, the team takes this very seriously. So you can expect bug bounties and similar efforts to level up security.
Beyond that, the team has big dreams for the project
24/ They plan to become one of the biggest loan providers to small to medium farmers around the globe.
Though it is still a long way to go to put all the ducks in the row, they are confident that their team can deliver.
25/ RWA is also an big terriority that is still untapped and Landx is an obvious pioneer here.
That's why they think that agricultural finance can bring a gasp of fresh air to the space while offering investors the opportunity to create a RWA future.
Source: https://twitter.com/arndxt_xo/status/1661296075888816128