IX Swap is the “Uniswap” for security tokens (STO) and tokenized stocks (TSO).
IX Swap is creating the world’s first liquidity pools and automated market makers (AMM) for security tokens and tokenized stocks.
What is an automated market maker (AMM)?
An AMM is a type of decentralized exchange (DEX) protocol that relies on a mathematical formula to price assets using blockchains and smart contracts. Instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm. Any investor can participate in the DeFi liquidity pools and earn fees as a benefit.
What is a liquidity pool?
A liquidity pool is a collective pool of funds locked within a smart contract and is used to facilitate trading and lending. Liquidity pools are the backbone of many decentralized platforms.
Many platforms such as Uniswap, allow users (a.k.a. liquidity providers (LP)) to add tokens to a pool to create a market. In exchange for providing liquidity, liquidity providers earn trading fees that occur within their pool, proportional to their ownership in the pool.
Standard AMM Model for most cryptocurrency platforms:
What does this mean for STO/TSO Investors?
STO/TSO investors will be able to stake liquidity on IX Swap and earn interest for their deposits. These deposits are placed in liquidity pools to facilitate the trading of these assets.
These STO/TSO investors will also be known as liquidity providers.
The amount these liquidity providers earn will be determined by the amount of fees that are generated by the trading of these assets within the pool.
This creates an additional stream of passive income for STO/TSO investors as these assets generally have long product lives — allowing investors to create value out of their idle laying assets.
What does this mean for STO/TSO Issuers?
A large reason why security tokens never took off in the first place, was due to the lack of liquidity solutions/infrastructure in the market. A common question by STO issuers would be — where is the trading liquidity of these tokens going to come from? IX Swap provides an answer to this question.
Issuers will be able to create their own trading liquidity. They will be able to create their own liquidity pools for investors, providing tradability and liquidity for their own tokens.
The ability to create your own liquidity and to be able to participate in market making activity, will create a paradigm shift in the issuance and ecosystem of the STO/TSO industry. This has never been done and is a game changing solution to the industry’s well known liquidity problem.
IX Swap is going to revolutionize the STO/TSO industry and is the liquidity solution for all STO/TSO exchanges globally, bridging the gap between CeFi and DeFi.
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IX Swap is the last infrastructure piece needed to bring life to the security token/tokenized stock industry. IX Swap will revolutionize the STO/TSO industry and is the liquidity solution for all STO/TSO exchanges globally, bridging the gap between CeFi and DeFi.
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