Thread by @cyrilXBT

If you are ready for #altcoinseason one of the few projects with great utility LandX protocol will soon launch its final testnet

Let us take a dive into what this is all going to entail.

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#landxfinance #landx #RealYield

What I will be covering

-Introduction to LandX
-Farmers Can Access Flexible Capital When Needed
-perpetual commodity vaults
-The problems LandX solves

The whole economy would suffer without agricultural production hotspots. It is clear that farmers are essential to this environment.

Without them, the farmland would be useless and no food-producing crops would be grown.

Even though I briefly discussed landX in the past, Let me reintroduce you to LandX

By using perpetual commodity vaults built on the blockchain, LandX is a decentralized protocol that bridges the gap between owners of farmland and cryptocurrency investors.

LandX is built on the Ethereum network.

What is "perpetual commodity vaults," you may be wondering.

The LandX protocol enables agreement between lenders (investors) and borrowers (farmers).

The vault serves as a blockchain-based token that can be traded for the market's benchmark price.

A daily dividend of the underlying commodity will always be paid to the owner of the staked token. LandX is a fairly straightforward solution that helps investors and farmers alike.

For example, financing for agriculture is administratively challenging, and investors have little access to the produce of actual farmland, to name a few.

Additionally, they work with a number of noteworthy partners, including
@wonderverse_xyz @GammaStrategies

On the 5th of December 2022, LandX will launch as a dress rehearsal on Ethereum's Goerli testnet, its last test before going live.

Farmers Can Access Flexible Capital When Needed. A farmer's life is not simple.

The major problem most farmers have is getting access to money. Although this affects small farmers more than large farms, there is a problem with financial access in the entire industry.

Farmer loans are the main source of money for farmers.

So how does it work?

The farmer is basically makes a promise to pay his future harvest to the protocol and that promise is tokenized.

The farmer's crop share becomes ERC20 tokenized as an erc-20 token that investors stake and receive 1c token

Each staked xToken yields one cToken per year. cToken price is pegged to the price of one kilogram of the underlying commodity. At any time, the holder may convert accumulated cTokens into USDC, at market price.

At any time, the holder may convert accumulated cTokens into USDC, at market price.

Every xToken vault is backed by crop share from real productive farmland.

Following the initial cash infusion, the farmers can progressively repay their loans using a portion of the profits they create by purchasing the necessary equipment to produce and sell crops.

A situation where there is insufficient interest to offer capital to farmers is created by the interaction of ignorance, lack of information, and uncertainty.

Since of this, farmers frequently have only two options: pay mercenary private financiers very exorbitant interest rates, or pay banks that charge very high-interest rates because they are unsure of the level of risk involved.

Naturally, poor transactions result from a lack of access to finance.

Until now, that is.

LandX is aware that the farmers already have land as a kind of collateral and agricultural output as a source of income.

But there is room for improvement in capital availability.

To address this, LandX provides a platform for farmers and DeFi investors to collaborate on crop-share agreements. Farmers receive xTokens under this crop-share agreement.

Since xTokens are yield-bearing tokens, possessing one qualifies the holder for a piece of the harvest share, which will be delivered in the form of cTokens.

Therefore, farmers can offer these xTokens to DeFi participants on the open market.

While DeFi investors now possess yield-bearing tokens that earn a constant dividend based on actual revenue collection, farmers gain rapid access to finance.

That's a wrap!

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