Please describe your proposed solution.
I and my co-founder simultaneously trade crypto and traditional financial products. But for investors outside the US like countries in Asia, it is difficult to access structured financial products or securities in the US because the procedure is very complicated. And in the crypto environment, too, there are only very simple products for trading such as swaps, staking, and lending. What we need more than that to achieve specific investment goals.
Liquid X is a protocol that enables market markers, and hedge funds to create structured financial products and synthetic asset products with Cardano Blockchain. Investors can easily invest in these types of assets on the platform
- Synthetic asset: Issuers will issue synthetic assets by pledging collateral equal to 300% of the value of the shares they want to create. Traders can easily trade stocks on the exchange without opening an account in the US
- Structured financial products are innovative investment instruments that are derived from and linked to underlying on-chain or real-world assets. They use a variation of credit/risk, liquidity, and maturity transformation techniques to achieve specific investment goals. By offering risk-return dynamics that deviate from its underlying, these investment products ultimately appeal to a broader array of investors.
How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?
Liquid X is a protocol that provides structured financial products and synthetic assets for the Cardano ecosystem
The benefits that Liquid X will bring to the Cardano include:
- Attracting traditional financial investors to Cardano: Traditional users want to invest in crypto but the market moves too fast making investors feel unsafe, Liquid X can control and give them a choice of fixed-rate products
- Helping users available on Cardano have more choices and customize investment structure
- Bringing financial assets from the real world to the users of the Cardano ecosystem
- Attract assets from other chains to Cardano
How do you intend to measure the success of your project?
To measure the success of our project that assesses the benefits to the Cardano Ecosystem, we intend to use the following key metrics:
- TVL: The more assets collateralized to mint on Liquid X, the Cardano's value is increasing
- Trading volume on the protocol: The more trading volume, the more they will use ADA as a fee
- Total of issuers: The more people list assets or use financial products, the more Cardano proves itself to traditional investors.
Please describe your plans to share the outputs and results of your project?
We plan to share the outputs and results of our project through various channels and methods to ensure information spread widely. Here are the key elements of our plan:
- Website: We will regularly share about progress of the project, new client information, upcoming events, and other updates related to product development.
- Social Media: We will use our social media platforms such as a Facebook fan page, telegram groups, discord, and Twitter to share our outputs and results of projects including milestones achieved, new features, or any significant developments and cooperations of our project.
- White paper: Update roadmap on whitepaper and user can track
- Online Workshop: Sharing knowledge about how to release a structured financial product and synthetic asset