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STOs are bridging the gap between the traditional money market and the new era of digital currencies, by tokenizing traditional investment types, such as stocks, bonds and commodities. Tokenizarion of an asset is among one of the most powerful ways to express and manage an asset, where it is represented directly on the blockchain in the form of a token. This allows for error free transactions that are automatically reconciled and authenticated on the blockchain, with no human mediation. An STO, which is a Security Token Offering works in the same way as an ICO, except that investors’ funds are represented through security tokens, rather than traditional cryptocurrency.
The world’s first DeFi AMM and liquidity pool provider
One platform, IX Swap (IXS) is all-in on the potential of security tokens, and that’s why it has dedicated itself entirely to developing a purpose-built STO DeFi platform, where users can trade and invest tokenized stock as well as barrow, lend and market make with huge potential returns.
Lending and borrowing on the blockchain is unlike anything that investors have engaged in before. It brings unparalleled opportunities for seeking high yield and passive income. For borrowing, clients don’t need to sit across from a borrower or indeed sign anything, as the blockchain gives them a trustless approach to conduct this type of transaction as smart contracts are deployed instead.
IX Swap is an AMM, an Automated Market Maker and liquidity pool platform for STOs and TSOs, and has the main objective of bringing deep liquidity to this arena. The liquidity pools IX Swap will run include one for custodial assets (where a 3rd party custodian oversees the process) and one for non-custodial assets (where users can stake their own tokens to enjoy a percentage of the fees).
IX Swap offers loss insurance for users, which bring 8% of funds, 5% of trading fees and 50% of penalties allocated to the insurance fund. The entire protocol has the native IXS token at its core. It is distributed to users for rewards and loyalty and also has its own pools, as well as being the payment token for the InvestaX CEX Platform.