IX Swap — TehMoonwalkeR AMA
Greetings everyone! Have a look at our first AMA that we had TehMoonWalkeR, in their telegram group Tuesday, July 20.
Please introduce yourself to the moonwalkers, tell us about your experience and work in the Crypto field.
Julian: Hi everyone! My name is Julian and I am one of the Co-founders of IX Swap.
I was born and raised in Sydney Australia, and have spent my life starting companies (7 companies over the last 20 years based in Beijing, Shanghai, and Singapore) including social media/technology, real estate investment & development, proptech, and blockchain. I have spent my life starting businesses in new markets and new industries and now focused on building IX Swap as a key infrastructure connecting DeFi and CeFi. This is an enormous opportunity to completely change how everyone can invest and access investments.
I am also co-founder and CEO of InvestaX, a licensed security token platform headquartered in Singapore and the first platform partner for IX Swap.I am super excited about IX Swap and the potential for the IXS token.
Aaron: Hi everyone! My name is Aaron and I am one of the Co-founders of IX Swap. My background has primarily been in traditional finance and banking. I grew up in Melbourne but have spent most of my career in Singapore doing investment advisory across multiple large private banks. During my time in the banking industry I was extremely fascinated by the crypto industry and started trading and arbitraging crypto markets back in 2017.
The crypto markets were extremely volatile but offered a plethora of opportunities and offered an open architecture which was the complete opposite to what I was experiencing at the bank. After years of being fed up and frustrated with traditional banking practices, I left the bank and pursued my interest in crypto trading opportunities for a few years before joining InvestaX which is a leading platform for global security token projects. Security tokens were a natural evolution for me given my experience in traditional finance and love for crypto.
I will be leading IX Swap in terms of business strategy and operations going forward.
Great, let’s start with the questions, Tell us what Ix Swap is and what are you guys trying to showcase.
Aaron: So to put it simply, IX Swap is building the “Uniswap” of the Security Token (STO) / Tokenized Stock (TSO) industry.
IX Swap will be the FIRST platform to provide liquidity pools and automated market making functions for the security token (STO) & tokenized stock industry (TSO). The platform will be the first DeFi platform to facilitate the trading of security tokens through licensed custodians and security brokers, which will provide actual ownership and claim over these real world assets.
Julian: IX Swap is the last key piece of infrastructure needed to grow the STO industry.
STO/TSO investors will be able to contribute to the ecosystem and STO/TSO issuers themselves will be able to create their own liquidity pools. This in itself will create a paradigm shift for the industry providing this groundbreaking liquidity solution for the STO/TSO ecosystem.
Please tell us about the history of creating IX Swap. What is the story behind its origin? When did it start? Just curious about the name of the project.
Julian: We started one of the first STO platforms licensed in Singapore called InvestaX, doing issuance, trading, and custody of STO. However, as the industry is new, there haven’t been any market makers yet…so we created IX Swap.
Aaron: Over the last few years, several groups around the world in key jurisdictions have been in stealth mode working on getting the necessary licenses, building the associated blockchain technology and infrastructure.
InvestaX was one of these companies. Today we already have issuance, trading, and custody solutions in key capital markets, and jurisdictions around the world including New York (Tzero), London (Archax), Hong Kong (OSL), and Singapore (InvestaX). Leading cryptocurrency exchanges as FTX have also recently launched tokenized stock offerings (TSO).
Trading liquidity is the last piece of the puzzle due to the lack of market makers in the industry, IX Swap solves this problem and closes the infrastructure loop.
Julian: So ultimately we saw a huge opportunity to build a solution to a huge problem, which is the 1st AMM and liquidity pools for STO through IX Swap, just like Uniswap solved liquidity for the DEX, IX Swap will bring the same explosion of growth for the STO industry which has been lagging behind crypto in terms of issuance and trading volumes.
But there would be issues with compatibility and safe issuance. How are you going to assure smooth growth?
Julian: IX Swap is blockchain, custodian & broker-dealer agnostic meaning that IX Swap plans to connect to as many blockchains, custodians and broker-dealers to build out the STO ecosystem globally. The key is to partner with STO platforms that are legally allowed to issue and trade STO.
Aaron: The key here is working with licensed parties that can deal with securities. Our first Broker/Dealer partner InvestaX, which is located in Singapore and is also licensed by the Monetary Authority of Singapore for brokering securities and operating a digital securities exchange.
Who are the partners strategically helping the growth of IX Swap?
Julian: Investors won’t get “rugged” on IX Swap because our partners are legitimate players in leading capital markets around the world.
Aaron: We are currently forming multiple partnerships across both the crypto and STO space which we will announce over time. But the few partners that we will share for now are:
- InvestaX - our first Broker/Dealer partner which is located in Singapore and also licensed by the Monetary Authority of Singapore for brokering securities and operating a digital securities exchange.
- AtlasOne Research - provides leading digital securities and security token market data.
- First Digital - Our first Licensed Digital Custodian partner.
- Titanium Blockchain - Providing R&D and blockchain innovation support.
Julian: We have also already started discussions with multiple blockchains who want to integrate with IX Swap.
Can you tell us how First Digital is helpful for your project’s development?
Julian: This here explains how first digital/custodians will work in the flow.
Aaron: To explain the diagram. The liquidity pools for the security tokens work similarly to other AMM models. IX Swap allows Security token holders to become liquidity providers by depositing their security tokens into liquidity pools and receiving a share of the fees in return.
On IX Swap; When security tokens holders request to provide liquidity, the security tokens interact with IX Swap smart contracts and are held with a 3rd party custodian. A wrapper token of the same security token is simultaneously minted and this wrapper gets added into the liquidity pools.
Similarly, IX Swap is also connected to 3rd party licensed broker-dealers to facilitate the trading in the liquidity pools.
IX Swap’s first licensed broker-dealer partner is InvestaX but in the near future IX Swap intends to be broker-dealer agnostic and custodian agnostic meaning that any exchange will be able to connect with IX Swap to tap into IX Swap’s liquidity pools for trading.
What’s the benefit to redirect the token to 3rd party custodian?
Aaron: The key purpose of the custodian is to safe-keep the STOs and to maintain a proper share registry of ownership of these assets.
Aaron: Above is some info on the types of custody.
Julian: You need 3rd party custodians to facilitate the STO pools, which also protect investors.
Who is the major Audience of IX Swap? Is there any focus on non-Crypto users, who don’t have any knowledge about NFT and DeFi?
Julian: IX Swap offers crypto investors as well as STO investors the ability to create liquidity pools and share in the market making fees.
Aaron: If you like the idea of tokenizing the world, the right path forward is security tokens and not NFTs or purely cryptocurrency. Don’t get me wrong, NFTs are great, I own a bunch of different NFT’s myself but NFTs aren’t going to solve everything and give ownership rights over the home that you live in, or equity in the companies that we buy food from.
The types of security tokens we see in the market right now are assets like houses, cars, hard assets (like machinery, livestock, produce), and equity of companies. These are the assets that we see in our everyday lives. Security tokens allow for the fractionalization of these assets bringing liquidity to these illiquid assets and providing access to these private assets. So in short, anyone who believes in tokenizing the world would be a major audience for IX Swap.
What are the extra features or specs that IX Swap provides to its investors? What is your USP?
Julian: Part of the USP is the team, experienced across start-ups, legal, investment banking, blockchain, we need a really high level of brainpower to execute and the support of our community, of course, it also took us many years to build relationships with leading STO platforms in the world who all want to partner with IX Swap.
Our other USP would be that unlike some of the other platforms that are doing something similar with synthetic assets.
The assets being traded on our platform may include tokenized stocks but also other security tokens which have claims over real-world assets. (ie. property, private company equity ownership, investment funds) We facilitate this through licensed custodians and broker-dealers that ensure the safe and proper handling of STO to protect our investors.
Let’s talk about the token, what is the tokenomics of your token, and how will you stimulate the users to hold your token in the long run?
Julian: For the community, the team and partners are all 3-year vesting schedule, we are 1000% against the pump and dump and here for the long term to build out IX Swap.
Aaron: Oh now onto the fun stuff! The IXS token as you can see above would provide governance capabilities and token holders would also be able to benefit from the fees that IX Swap earns from the individual pools.
The tokens also have a distinct deflationary function whereby vaults have been created to accept a portion of the fees to buy back tokens and also sends a portion of the tokens to a permanently locked vault. This will create a deflationary effect on the tokens the more the platform is used.
Julian: We thought long and hard about how to create long term value and growth for the token and price and continue to work on that daily.
Would it be distributed among the users?
Aaron: IXS token holders will be able to stake their tokens on IX Swap to receive a fixed interest rate as income. Platform earnings in the future will also be distributed to IXS token holders
IXS token holders will also be able to stake their tokens for governance related to the activity of IX Swap.
Lastly, please tell the community a bit more about late 2021 plans? Please tell us about your Roadmap and milestones in the future.
Julian: We have lots of tech development in progress, negotiating IDO/IEO listings now and many partnerships on technology and business underway, the STO market is ready and IX Swap’s timing is bang on.
We are also finalizing discussions and planning with multiple blockchains (other than ETH), stay tuned for more updates.
Aaron: We are currently building out our MVP and we expect it to be fully functional by the start of September.
Governance and platform fee splits will be enabled at the start of 2022.
Aaron: It was a pleasure speaking with you and everyone here in @tehMoonwalkeR community!
Come to our community channels at Twitter, Medium, Linkedin, or Telegram to find out more!
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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.