Thread by @cyrilXBT

Discover the next frontier of innovation in DeFi: bridging real-world assets to unlock a new wave of growth!

Learn about @landxfinance and its mission to revolutionize the $12T agricultural commodity industry

#DeFi #Landx

What I will be covering:

-The Background
-The Limitations of DeFi
-The Importance of Real-World Assets
-Real-World Assets with LandX
-Conclusion

The Background

Blockchains emerged as an alternative to traditional finance's lack of transparency and unequal distribution of resources.

The advent of DeFi on Ethereum, enabling the construction and utilization of real financial instruments on a blockchain, occurred in 2020. The Total Value Locked (TVL) in DeFi skyrocketed from $600 million in 2020 to an astonishing $170 billion in 2022, a growth of 28,233%.

Despite this impressive increase, the DeFi industry is still considered in its experimental phase, with most activity confined within the crypto community and limited integration with traditional finance and real-world assets.

The Limitations of DeFi

The crypto industry is mostly separate and used primarily by crypto enthusiasts. Apart from stablecoins, there is little interaction with the actual economy and limited income generation.

DeFi aims to establish an alternate financial system, but it should not overlook real-world assets. Both traditional finance and DeFi have advantages, and their integration may be crucial for widespread adoption.

The Importance of Real-World Assets

The integration of real-world assets (RWA) with DeFi combines the benefits of traditional finance and decentralized finance.

RWA refers to assets with cash flow that can range from physical items like real estate and cars to non-physical assets like bonds and mortgages.

This integration provides traditional finance with efficient DeFi tools while providing crypto natives access to familiar and valuable assets.

#DeFi also reduces intermediation costs, increases liquidity, and expands access to foreign assets for emerging economies.

Real-World Assets with LandX

The agricultural commodities industry, valued at $12 trillion in 2021, is a key player in the global economy. Despite its size, farmers face challenges accessing capital.

LandX solves these issues by offering simple capital access, reducing intermediation costs, and boosting liquidity. LandX tokenizes agricultural commodities to make them more accessible and investable.

Join the DeFi revolution and invest in agriculture's future with landx

Conclusion

The integration of DeFi with real-world assets (RWA) has the potential to solve a number of inefficiencies in the traditional financial system and bring in a new wave of participants.

RWA refers to any physical or non-physical assets with a cash flow that can be put on the blockchain. DeFi eliminates intermediation costs and increases liquidity, making assets more accessible for individuals and businesses.

Among the protocols emerging to integrate RWA with DeFi, LandX stands out in solving the inefficiencies faced by farmers in the $12T agricultural commodity industry.

By allowing farmers to enter into revenue share agreements with LandX, they can access capital without the high-interest rates and extensive paperwork of traditional banks.

The future looks bright for the amalgamation of DeFi and Real World Assets (RWA), bringing the industry closer to mainstream adoption.

Thank you for reading this far. I hope you've found this thread helpful.

Follow me @cyrilXBT for more 🧵

Like/RT the first tweet below it goes a long way for this page👇

https://twitter.com/1373665408193036293/status/1620808472873820162