Thread by @UrithFaber

1/14

How do we solve the liquidity problem in the #securitytoken (STO) industry?

Let's do a short ramble thread on this🧵

Before #Uniswap, alot of #crypto projects were suffering from the same liquidity problem.

#btc #eth #blockchain #realestate #web3 #investing #sto #trading

2/14

So what did Uniswap do to help alleviate this issue?🤔

They used an Automated Market Maker (developed by #bancor) where any crypto project could create their own liquidity pools. Allowing those that couldnt afford to list on a big #exchange to make their #tokens tradable.

3/14

Pools attract liquidity by incentivizing people to provide liquidity.

In its basic form, liquidity providers add an equal value of the 2 #tokens in a pair, and then get a proportional passive % of all swap fees in that pair.

Incentives on top of that are also possible.

4/14

This AMM model is very successful and created an explosion of value in the #defi ecosystem.

You can also apply this model to #SecurityTokens👈

We haven't seen this because STOs are regulated and the framework to do this in a legally compliant way was missing. Until now.

5/14

The #STO space is still nascent in general.

But with the proper frameworks falling into place, the space is gaining traction quickly and catching the eyes of major #TradFi entities👀that are realizing the benefits of #tokenization and #defi.

#Crypto will catch on aswell.

6/14

So, Security token #hodlers can finally start putting their idle assets to work, getting those same benefits from AMM #defi applications🔥

The STO space is already growing exponentially and this innovation will help it explode soon💥

#eth #btc #blockchain

7/14

Unless I missed something, there's 4 platforms using this #AMM innovation for #stos that are paving the way forward together.

@StoboxCompany
@SOMA_finance
@DigiFTTech
@IxSwap

Shoutout to all of them!

Some of these are a little further along than others.

#crypto #web3

8/14

The leading platform providing this legally compliant framework & AMM model is definitely @IxSwap

Their slogan:
"The #Uniswap for #securitytokens and Fractionalized #NFTs"

They have a very accomplished and sizable team building out their product and are well connected.

9/14

They were the first company to have a working product and STOs listed. Good progress on the development side. Lots of promising stuff coming up.

2 new STO Listings coming shortly and a fractionalized #BAYC in october.

$ixape #nfts #NFTCommunity #nft #nftcollector #ETH

10/14

The private securities market that is being brought to #blockchain and these platforms is absolutely massive (trillions) and holds great investment opportunities.

This market was exclusive to the rich, but now #tokenization is opening it up to retail investors in #Crypto

11/14

Regardless, the space is still new and the listings are scarce right now among these #AMM for #STO platforms.

Of the #STOs that already existed, many can't provide proper financial or KYC documents.

We're seeing a large shift in this now as the space is maturing. 👍

12/14

What this means though, is that you can be really early as an investor in these platform's #tokens.

Look into @IxSwap and their $ixs tokenomics most of all. I bagged some. The rest did not impress just yet.

One seemed a bit shady even. ➡️DYOR

#crypto #invest #btc #eth

13/14

All in all, watching the birth of the #STO space is very exciting. I recommend anyone to dive into it, there's so much to #learn and look forward to.

Check out @STOmarket and their show if you really wanna go balls deep and keep up with constant developments.

#web3 #news

14/14

#Educate yourself and get in early👈

For those who sat through my ramblings so far, thank you! Kinda zoned out on this one.😅

Here's a cute picture of my #cat as a reward for your patience😉Hell, take 2❤️

#Caturday #altcoin #bitcoin #ethereum #trading #price #business