LandX Enters the DeFi Space
DUBAI, UAE / ACCESSWIRE / November 16, 2022 / LandX is soon launching its perpetual commodity vault protocol, seeking to give real-world farmers a new option for capital and to expose investors to farmland crop share in the form of xTokens, its liquid commodity vault tokens. The LandX spokesperson states, “LandX is bridging real-world assets with decentralized financing. By tokenizing crop share agreements, it is possible to create digital assets that produce real yield from real world production.”
Farmers around the globe need capital for equipment upgrades, storage updates, and the expansion of their operations, but access to it can be difficult or often unavailable. LandX and its new DeFi ecosystem are meant to address the lack of capital faced by farmers, which can result in exploitation and poverty.
LandX explains, “Financing for farmers is broken in many parts of the world. By connecting farmers with sophisticated investors in decentralized finance, we can offer more competitive products that are more flexible and fair for the farmer.”
Investors, for their part, are looking for projects with sustainable business models. LandX adds that Ethereum, including the wider blockchain sector, is evolving, and as it matures, it puts “LandX in a unique position to enable investors to take a fractionalized position which gives exposure to agricultural farmland.”
To help farmers generate real yield from real production and investors to diversify their digital asset portfolios, LandX utilizes the power of the blockchain. Farmers have the opportunity to raise capital using the DeFi ecosystem in exchange for regular crop share payments secured by the underlying farmland.
These crop share payments are then tokenized on the Ethereum blockchain, ultimately creating digital assets, or “xTokens,” that produce real-yield payments in commodity tokens, or “cTokens.” Each cToken represents 1 kg of a product, such as wheat, rice, soy, or corn. For example, one cRICE token is equal to the current market price of rice. One xRice can be staked to earn 1 cRice per year, which in turn can be exchanged for USDC at the market value of 1 kg of rice.
The LandX ecosystem has three core participants, including farmers, validators, and investors. Farmers are responsible for maintaining production on their land and timely payment of their crop share obligations. They pay rent in the actual crop they yield or in a currency, equivalent to the value of the crop share at the published LandX rate on the date of payment. Rent is paid to the protocol. Validators are responsible for onboarding new farmers, vetting land production, and validating legal contracts. Investors provide the demand for xTokens and cTokens minted by the protocol, which fuels the ecosystem.
The goal of LandX is to make farmland financing more streamlined, flexible, fair, and efficient, improving upon the financing options currently available. The LandX protocol is ultimately a bridge between real world production and blockchain technologies, providing a decentralized marketplace that connects global farmers with DeFi investors.
LandX reveals that the company is in its final stages of having third-party security audits completed on its code base. “Once this is complete, we will be gearing up for the launch. This will start with the TGE for the LNDX token before we go live with the main protocol.”
As LandX continues its international rollout, it remains focused on creating digital assets which benefit from real world production and bring sustainable yields to DeFi markets. The LandX spokesperson states, “With products like the xUSD stablecoin, there is no limit on how large we can grow, as this product has wide appeal to mainstream audiences who want a high yield on their USD holdings.”
LandX is a new asset class for DeFi collateral. It operates a remote team from across the world, with its core development team based in Europe, where they work on smart contract creation and dApp frontend. Its dedicated personnel also work on business development, marketing, and community management.
For more information about LandX and its innovative opportunities for farmers and investors, please contact:
LandX Finance
Email: info@landx.fi
Linktree: linktr.ee/landxfinance
SOURCE: LandX
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