Now live on Ethereum mainnet and Arbitrum, LandX gives onchain DeFi users a way to get exposure to the agricultural commodities sector. Deposited funds are used to finance real farmers, with yield denominated in commodities returned to users.
In this edition, we’re briefing you on everything you need to know about this protocol, from how $LNDX’s tokenomics work, to how the protocol integrates offchain RWAs into it’s dApp, and everything in between.
Stay alert in the markets ⬇
News:
- 7RCC Joins Bitcoin ETF Race with ESG Focus: 7RCC, an ESG-focused crypto asset manager, has applied for a spot-bitcoin ETF, featuring a unique blend of bitcoin and carbon credits futures.
- Blackrock Revises Bitcoin ETF Proposal: Blackrock updates its spot bitcoin ETF proposal to include cash creation and redemption mechanisms, aligning with SEC preferences.
- Genesis Blocks DCG from Ownership Changes During Bankruptcy: Bankrupt crypto lender Genesis secures a court order preventing parent company DCG from altering its ownership until bankruptcy proceedings conclude.
- Indonesian VP Candidate Promises Crypto Expertise: Gibran Rakabuming Raka, running for Vice President in Indonesia, plans to foster blockchain and crypto experts in the country.
- Critical Vulnerability in OKX Wallet App: Certik alerts OKX Wallet users to update their iOS app due to a critical Remote Code Execution vulnerability in a previous version.
- Marathon Digital Expands Mining Capacity: Marathon Digital acquires two mining sites for $178.6 million, increasing its capacity by 390 megawatts and reducing mining costs ahead of Bitcoin's halving in 2024.
- Spot Bitcoin ETF Approval Likely in January: K33 Research suggests that the approval of spot bitcoin ETFs in the U.S. is imminent in January, following recent application updates and SEC preferences.
- UK Finance Minister Investigates Crypto Firms' Banking Issues: The UK's finance minister commits to probing the challenges faced by licensed crypto firms in opening business accounts.
Project Updates:
- Lisk Transitions to Ethereum Layer 2 with Optimism and Gelato: Lisk, initially a Layer 1 blockchain, is transitioning to an Ethereum Layer 2 solution, collaborating with Optimism and Gelato.
- EigenLayer's Deposits Surge Past $900 Million: EigenLayer sees a significant increase in user deposits, exceeding $900 million, following revised caps for liquid staking assets.
- Fuse Network Collaborates with Polygon Labs: Fuse Network announces a partnership with Polygon Labs to develop a ZK-Powered Layer-2 solution, aiming to revolutionize Web3 payments and enhance the Ethereum-based infrastructure.
Alpha from Trace by Revelo:
Inflows:
- $TOPIA leads with over $100k inflows from smart money, up 10% today, with a $57M market cap. It's the in-game currency for Hytopia, a Minecraft-like game.
- $MND, an AI-based project on Bittensor, sees renewed inflows, up 8% today, now at a $12M market cap after retracing from $30M at launch.
Outflows:
- $RPILL leads outflows with ~$197k, down 13% today, with a $13M market cap.
- $HEMULE follows with $80k outflows, up 40% today.
- $PRIME (+17%) and $LBR experienced outflows of ~$60k.
- $BSSB (+35%), $BEAM (+13%), $Doge-1 (+548%), $MUBI (+54%), and $GEC saw outflows in the $40k to $30k range.
Background on LandX
LandX Finance is a blockchain protocol that aims to introduce Real World Assets (RWAs) into the world of decentralized finance (DeFi) through Perpetual Commodity Vaults.
By bringing agricultural RWAs on-chain, the protocol can provide investors with yield opportunities and exposure to uncorrelated asset classes relative to DeFi and crypto.
As a decentralized protocol, LandX connects farmland owners with crypto-native investors through blockchain-based Perpetual Commodity Vaults. This design makes it possible to generate real yield from real production, entirely on-chain.
Farmers can raise capital from the DeFi ecosystem in exchange for regular crop share payments secured by the underlying farmland. These crop share payment obligations are tokenized as ERC-20 tokens and represented on-chain as xTokens.
LandX’s platform focuses on four crops: corn, wheat, rice, and soy.
$xBasket is an index token which grants holders equal exposure to all 4 crops, split 4 ways.
How LandX Works
LandX introduces a new method of utilizing farmland through the utilization of tokens and NFTs.
On the one hand, NFTs are used to represent legal and economic contracts backed by farmland, ensuring a reliable and secure coordination system for both parties.
On the other hand, farmers commit a percentage of their yearly harvest through a legal contract, known as a lien, after undergoing an extensive qualification process.
In return, they receive xTokens equivalent to the agreed-upon crop share. These tokens are then sold to interested investors, providing farmers with upfront capital.
To hedge against potential uncertainties, LandX requires farmers to keep 12 months of crop-share payments and a 12-month security deposit on the platform.
Additionally, the protocol ensures that independent legal agreements give LandX the right to take ownership of the collateral (farmland) if the loan is not repaid.
Perpetual Comoddity Vaults
The LandX protocol facilitates agreements between borrowers (farmers) and investors using blockchain-based tokenized Perpetual Commodity Vaults.
This makes it possible for investors to receive yield that is guaranteed by legal contracts secured by the underlying farmland.
Perpetual Commodity Vaults trade at a market-determined principal price and provide daily yields of the underlying commodity in perpetuity to token holders.
These products are traded through an internal marketplace that employs a Chainlink Oracle data service to update product prices.
This means they can be redeemed 24/7 with zero slippage when exchanged for stablecoins like $USDC.
xTokens & cTokens
xTokens are Perpetual Commodity Vaults that pay out 1 cToken per year in yield, providing investors with a consistent income stream.
xTokens are tradable on the open market.
One of the key benefits of xTokens is their ability to hedge against inflation.
This is achieved by providing exposure to the crop output of farmland, a historically reliable inflation hedge.
cTokens are on-chain commodities represent 1KG of the underlying product, offering tangible ownership of real-world assets.
cTokens are redeemable in the LandX dApp for $USDC. They are not tradable on the open market.
cTokens are exchangeable for the market value of the underlying commodity.
LandX Launch
LandX launched yesterday, quickly seeing inflows.
At launch, $2M of xTokens/USDC liquidity were made available.
The project is available on both Ethereum mainnet and Arbitrum upon launch, with $ETH holding the majority of protocol TVL.
xBasket, available on Ethereum mainnet, holds ~$412k in TVL.
$LNDX Tokenomics
$LNDX is the native governance token of LandX.
The project raised ~$8.3M in total:
It allows users to receive a representative token called veLDNX, which receives a percentage of Protocol Revenue and allows token holders to participate in governance.
LandX imposes a 3% fee on farmland financing and 0.25% on regular crop share payments.
60% goesto $LNDX stakers.
35% goes to LandX Labs operations.
5% goes to the LandX Choice fund, comprised of supporting regenerative agriculture initiatives, education for land operators, and other practices.
In addition to the voting power in the DAO, being a $LNDX holder also comes with the potential to become a Validator for LandX.
Validators have the crucial responsibility of onboarding new farmers to the protocol and ensuring the smooth operation of the platform.
Future Plans
Currently, the core team executes their plans and does the decision-making. As TVL rises, the organization will corporatize and introduce a board, becoming more decentralized. Governance will become more important as the protocol grows.
LandX will be flying drones over their lands, so it will be possible for users to view the fields as harvests happen, which can provide assurance for xToken holders.
0xLandWalker, Founder of LandX, says the hardest decision made was keeping the commodities offered on the platform to just wheat, rice, soy, and corn.
The team welcomes others to fork the protocol and expand the types of crops offered, but LandX will focus on their 4 staple commodities and providing financing in these areas.
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