1/ On-chain commodities will be much bigger than most realize, especially with rampant inflation all around the globe.
A thread on the possibilities of @landxfinance with xTokens, cTokens, and xBaskets
A thread on the possibilities of @landxfinance with xTokens, cTokens, and xBaskets
2/ For those of you who aren't familiar with LandX already, feel free to check out this thread
3/ Before we begin, I want to disclose that this thread is sponsored by LandX
I already did a thread on LandX well before they reached out to me, so I was happy to do a more in-depth breakdown
This thread will go over xTokens, cTokens, xBaskets, and what they can be used for.
I already did a thread on LandX well before they reached out to me, so I was happy to do a more in-depth breakdown
This thread will go over xTokens, cTokens, xBaskets, and what they can be used for.
4/ Quick Recap:
Users can swap their stablecoins into xTokens, which yield real-world assets in the form of cTokens. cTokens are backed by a corresponding amount of the underlying commodity
Users can also diversify their commodity risk by investing in the xBasket vault
Users can swap their stablecoins into xTokens, which yield real-world assets in the form of cTokens. cTokens are backed by a corresponding amount of the underlying commodity
Users can also diversify their commodity risk by investing in the xBasket vault
5/
xTokens: Perpetual commodity vaults that pay out 1 cToken per year in yield.
cTokens: On-chain commodities representing 1 KG of the underlying product.
xBasket: An index of equally weighted xTokens
xTokens: Perpetual commodity vaults that pay out 1 cToken per year in yield.
cTokens: On-chain commodities representing 1 KG of the underlying product.
xBasket: An index of equally weighted xTokens
6/ xTokens and cTokens trade based on different pricing mechanics, meaning that they will be independent assets.
xToken value is derived from investor pricing of the vault.
cToken value is derived from the market value of the underlying commodity
xToken value is derived from investor pricing of the vault.
cToken value is derived from the market value of the underlying commodity
7/ The Possibilities:
xTokens and cTokens bring a completely new primitive into crypto, which allows other projects to build on top of LandX.
xTokens and cTokens may become core DeFi building blocks, similar to $GLP and the number of projects building on top of it.
xTokens and cTokens bring a completely new primitive into crypto, which allows other projects to build on top of LandX.
xTokens and cTokens may become core DeFi building blocks, similar to $GLP and the number of projects building on top of it.
8/ The Usecases:
Since cTokens are backed by real-world assets, we could see them used in a ton of ways. This could include:
-Investor speculation
-DAO treasuries
-Use in lending/borrowing markets
-Perp/Option trading
Since cTokens are backed by real-world assets, we could see them used in a ton of ways. This could include:
-Investor speculation
-DAO treasuries
-Use in lending/borrowing markets
-Perp/Option trading
9/ xTokens are yield-bearing tokens that trade based on investor pricing of the vault. This allows them to be used for:
-Investor speculation
-DAO treasuries
-Yield bearing collateral types in lending markets
-Investor speculation
-DAO treasuries
-Yield bearing collateral types in lending markets
10/ Conclusion:
Imo, we'll see commodities used in all sorts of ways on-chain. This is the first on-chain RWA backed commodity that has been created (to my knowledge), and the possibilities really are endless.
Imo, we'll see commodities used in all sorts of ways on-chain. This is the first on-chain RWA backed commodity that has been created (to my knowledge), and the possibilities really are endless.
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