What is IX Swap (IXS) And How Does It Work? | KuCoin Crypto Gem Observer
Security tokens and tokenized stocks have massive potential. Right now, these represent a fraction of the total private capital market. However, tokenization offers huge benefits over traditional processes. Does this mean that STOs and TSOs have the potential to eclipse this old system?
IX Swap seems to think so with a full-featured DeFi platform that is purpose-built for STO and tokenized stock. With the addition of borrowing and lending capabilities and market making, the project is looking to make a splash in the industry.
What is IX Swap?
IX Swap is an Automated Market Maker (AMM) and liquidity pool platform for Security Token Offerings (STO) and Tokenized Stock Offerings (TSO). It has been purpose built for this use case to fill in the missing gaps in the infrastructure needed to bring about the resurgence of STOs.
As ‘the bridge between DeFi and CeFi’, the project is looking to bring much-needed liquidity to the STO market. This will help fix a long standing issue of the market and help it leverage the growth of interest in the DeFi realm to push forward the use of tokenized assets.
How does IX Swap work?
IX Swap offers Automated Market Maker functions alongside liquidity pools to pump liquidity into the STO market. Two kinds of liquidity pools will be made available on IX Swap: one for custodial assets and another for non-custodial assets.
For custodial assets (STO and TSO), a third party licensed custodian is brought in to oversee the process and ensure all necessary rules are followed.
For non-custodial assets (cryptocurrencies), users can stake their tokens in order to provide liquidity and receive a share of the fees.
Borrowing and lending against idle assets will be possible on IX Swap. As with traditional markets, the borrowed amount will be a percentage of the asset’s current market value, while lenders will receive the full amount plus interest back. This is powered by a smart contract that will release the collateral once the loan is paid back.
The project also provides impermanent loss insurance that will see 8% of funds allocated for the ecosystem to the IL insurance fund. Additionally, 5% of trading fees will be contributed, as well as 50% of all penalties from early termination of liquidity provision contracts.
Who created IX Swap?
IX Swap was founded by a team of three well-experienced professionals:
Alice Chen brings over 17 years of corporate and legal experience to IX Swap. She has previously worked at major international firms before founding a blockchain digital securities platform.
Aaron Ong has over 8 years of capital market and investment advisory experience at top tier banks. He has been advising and investing across all asset classes, eventually getting him involved in cryptocurrencies.
Jules Kwan has founded 6 companies over his 20 year career, including in the blockchain space. He is focused on building platforms that adapt to the digital world and has years of hands-on knowledge with security tokens.
What is the IXS token?
IXS is the native token of IX Swap. Token distribution is as follows:
Private Sale: 19.4%
Strategic Partnership: 9%
Public Sale: 4.8%
MM Allocation: 1%
What is the IXS token used for?
First and foremost, IXS is the native currency for IX Swap. It will be distributed as incentive rewards to ecosystem contributors to ensure they continue to engage with the platform.
IXS paired pools will have boosted returns over non-IXS paired pools, while also having an added impermanent loss mitigation feature in place. On-chain governance capabilities for managing and implementing changes will also require the use of the token.
Otherwise, IXS will be the native payment token on the InvestaX CEX Platform.
The STO scene has been somewhat neglected. It has massive potential, especially when compared to the traditional securities systems. However, IX Swap is taking the leap with its platform that is aiming to breathe life back into the decentralized security tokens and stock scene through liquidity and more.
The foundation of knowledge and know-how it is building on is very solid, while its developments look up to the part of bringing about the rebirth of the ecosystem. With the KuCoin Spotlight coming up, now is the perfect time to get some IXS tokens and be a part of the growth of IX Swap right from the beginning.
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