Thread by @thelearningpill

Have you heard about tokenizing farmland crop output? An underserved and undervalued market?

This protocol helps farmers access capital and offers investors portfolio diversification and hedge, a 1st-mover in DeFi!

A 🧵 on $LNDX @landxfinance ⬇️

#LandX #landxfinance #realyield

In this thread ⬇️

1️⃣ LandX overview
2️⃣ Participants
3️⃣ Commodity vaults
4️⃣ Tokenomics
5️⃣ Roadmap
6️⃣ TL;DR
7️⃣ Concluding thoughts

1️⃣ LandX overview

Farmers experience difficulties in accessing capital for operational and expansion needs, and investors have limited exposure to on-chain commodity derivatives for diversification

Here comes LandX!

- LandX is a decentralized perpetual commodity vaults protocol which offers investors the exposure to farmland commodities and sustainable yield

- Farmers can use LandX to tokenize a portion of their future crops to receive capital

2️⃣ Participants

3 main groups of participants: Farmers, Validators, and Investors

· Farmers – commit their land’s crop share to LandX to access capital from investors

· Validators – act as a bridge between farmers and the protocol, responsible for onboarding new farmers and contract matters

· Investors – deploy capital in exchange for exposure to real farmland assets via xTokens

3️⃣ Commodity vaults

- Provides capital to real-world farmers in exchange for a legal share of their crop in perpetuity

- Contract is ensured by a farm audit, security deposit, and lien on their farmland

- Farmer’s crop share becomes an NFT, and deposit it into a smart contract to receive the equivalent amt. of xTOKENs

- Investors can purchase xTOKENs which pays out cTOKENs

- Farmers can buy back the xTOKENs at current market value to exit their obligation

Overview of the process flow ⬇️

❇️ Fees

Platform fees are set to 10% initially and distributed in $USDC between:

· 60% to $LNDX token holders
· 35% to LandX treasury
· 5% to LandX Choice Fund (sustainability programs)

4️⃣ Tokenomics

❇️ xTOKENs

- xTOKENs are liquid, tokenized derivatives tradable on Ethereum

- Represents 1kg/year in an underlying commodity, being paid out daily

- Value of commodity yield is converted to $USDC when the investor wants to claim their rewards

🔷 Benefits of xTOKENs

- Inflation hedge – offer exposure to crop output, which has historically been an inflation hedge

- Liquid, income-producing asset – Commodity vault tokens are tradable 365 days/yr on DEXs

- Daily yield – Commodity yield is added daily and can be claimed anytime in $USDC

- Portfolio diversification – provide uncorrelated diversification from crypto and other traditional financial assets

❇️ cTOKENs

- Represent the yield from holding xTOKENs

- Can be traded via an internal marketplace which collects landowner yield in $USDC and offers it at the mkt value

- cTOKEN prices are updated via a Chainlink oracle which taps into pricing data from TradFi exchanges

❇️ $LNDX token distribution

Total token supply – 80M $LNDX

Seed – 36.25% (48mths cliff & vest)
Private – 7.5% (3mths cliff, 9mths vest)
Public – 3.75%
Team – 12.50% (6mths cliff, 24mths vest)
Staking rewards – 19.5%
Liquidity. – 3%
Dev and stability fund – 17.5% (48mths vest)

❇️ $LNDX token utility

- Native governance and utility token of LandX protocol

- $LNDX holders have governance rights and can receive a pro-rata share of protocol revenue

- $LNDX stakers are eligible to become validators for LandX

5️⃣ Roadmap

The LandX roadmap for 2023 includes many different launches such as protocol mainnet, cross-chain, xBasket Index, xUSD, xNFT and LandX DAO governance

Read more about it here:
blog.landx.fi/landx-roadmap-…

6️⃣ TL;DR

- LandX is a decentralized perpetual commodity vault protocol which helps farmers access capital and offer investors an option for portfolio diversification and hedging

- 3 main groups of participants: Farmers, Validators, and Investors

- There is a 10% platform fee, which is distributed between $LNDX token holders, LandX treasury, and LandX Choice Fund

- xTOKENs represent 1kg/yr of underlying commodity, which generates yield and can act as a hedge

- cTOKENs represent the yield and can be traded via an internal marketplace

- $LNDX is the native governance and utility token for LandX protocol, and stakers are eligible to become Validators

7️⃣ Concluding thoughts

- LandX provides an opportunity to fill the gap between the need of farmers’ capital and portfolio diversification

- Volume and protocol fees are strongly linked to the attractiveness of $LNDX token. Would be great for more utility

- I like that there is a division of functions between $LNDX token, xTOKENs, and xTOKENs, especially since $LNDX will not be a form of rewards

- Seed investors’ cliff and vesting period (48 months each) shows their confidence in this protocol

- Looking forward to roadmap objectives, especially xUSD which may be the medium of exchange (my guess) that can help provide stability for the protocol

- Introduction of new products/assets (e.g., upcoming xNFT) would help to generate more awareness and extend user reach

Here are some sources to check out:

@eli5_defi did a good visual guide on @landxfinance

https://twitter.com/eli5_defi/status/1594929013566615552

LandX testnet – testnet.landx.fi

LandX docs – landx.gitbook.io/landx/introduc…

LandX Medium blog – medium.com/@landxfinance

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