Beta Testing Chintai Nexus
Introduction
Beta testing will be carried out in two phases. Chintai Nexus phase-1 beta testing began on 23-January-2024. Phase-2 beta testing began on 29-May-2024. The first beta focused on Real World Asset (#RWA) creation, issuance and trading. The second beta adds $CHEX utility token market functionality, exchange Automated Market Maker (AMM), CHEX bridge to multiple blockchains, transaction history, plus some other goodies that must remain secret for a bit longer.
This article is mostly Chintai Nexus screen captures taken during beta testing, video recordings of testing sessions, explanatory prose, with minimal editorial commentary by the author.
Bookmark this article and revisit regularly for periodic updates…
What is Chintai Nexus?
Chintai Nexus is used by financial institutions to tokenize and issue RWA, also allowing retail, accredited and expert investors to invest in and trade RWA, transforming capital markets for digital asset issuers and investors alike, democratizing investor access to RWA, expanding RWA access to retail investors more than ever before.
Nexus also fulfills the longstanding need for a gateway between decentralized (DeFi) and traditional finance (TradFi), ramping fiat to/from banking institutions, and bridging crypto liquidity across several protocols including BTC, ETH, SOL and EOS.
Nexus represents Chintai’s commitment to democratize investor access to traditionally private, illiquid investments, expanding RWA access to retail investors more than ever before. Accredited, expert, institutional and retail investors can evaluate and trade RWA to diversify their investment portfolios. Liquidity providers can stake CHEX and USD in leasing pools and markets.
A phased launch of Chintai Nexus began on January, 31st 2024. In Q2, 2024 the entire Chintai RWA tokenization/trading platform will be fully engaged in its mission to transform traditional capital markets.
One Blockchain, Two Nexus Walled Gardens
To remain compliant with Monetary Authority of Singapore (MAS) regulations, it’s important to realize two nearly identical Nexus applications are running in separate silos, partitioned in a walled garden architecture. Both versions of Nexus operate in the same network and blockchain; there are only minor permission configuration and UI differences.
Chintai Singapore: Supports institutional, expert and accredited investors for regulated security RWA issuance (institutional accounts only) and trading, regulated by MAS.
Chintai Nexus: Supports institutional, expert, accredited and retail investors for non-security RWA issuance (institutional accounts only) and trading, regulated by BVI. Chintai Nexus also supports a CHEX market that provides yield to retail account liquidity providers.
This beta testing effort focuses solely on Chintai Nexus. Since both versions of Nexus are virtually identical this doesn’t present a significant test coverage delta.
Four Nexus Account Types
Nexus supports four account types from Retail to Institutional accounts, with each account requiring increased KYC and AML/CFT credentials, each carrying increased access to Nexus features/capabilities:
Retail: Individual, non-professional investor who partakes in buying/selling of RWA and staking CHEX for yield
Accredited: A High Net Worth person or entity that is allowed to invest in RWA, including securities that are not registered with the financial authorities
Expert: A person or trustee whose business is involved in holding or disposing financial investments
Institutional: A company or organization that invests money on behalf of other people
Institutional accounts require the most account configuration and verification, since these accounts can also create and subsequently issue RWA.
Note that having multiple accounts is supported. For example, institutional entities establish an institutional account to tokenize and issue RWA, but can also establish a second expert or accredited investor account for RWA trading activity.
Not only are multiple accounts supported, multiple accounts on both Chintai Singapore and Chintai Nexuas are allowed. For example, Chintai partner DNZ Venture Global uses Chintai Singapore to issue real-estate security token offerings (STOs), and they use Chintai Nexus to issue non-security carbon credit tokens.
Phase 1 Goals: Testing Issuance and Trading
The first phase of beta testing focuses on account on-boarding, RWA issuance and secondary trading. The on-boarding functionality is part of the first Nexus retail release which took place on January 31st, 2024. The next release contains CHEX utility, crypto (Fireblocks) bridging, bank/fiat ramping and AMM exchange, targeting late February, 2024.
Note the following page captures are using older/original UI design/styling; a 3-month UX redesign is underway, so a subsequent Nexus release this Summer will have an improved look, mobile support and slightly altered flow. Therefore, UI ergonomic related feedback is not part of the or second beta phases.
Phase 1 Test Case: Nexus Sign-Up
The first test case involves signing up by providing an email address, password and establishing required 2-factor authentication.
After successfully logging in, the blockchain account ID associated with your Nexus login account appears in the lower-left corner:
ftvooalobxkn
Low UX friction is the name of the game. Your Nexus login account password salts your derived, associated blockchain account ID and RSA keys. Nexus account holders retain full custody over all of their assets at all times; all high-friction contention over blockchain accounts, RSA keys and account-signing “wallets” has been eliminated.
Once safely logged in, there are three major workflows to fully configure a new Nexus account: account verification, depositing funds and then investing/trading.
After signing up, the next step is to decide which of the four account types to create.
Phase 1 Test Case: Retail Account Verification
This case involves creating a retail investment account, the easiest account type to establish. Chintai encourages everyone to sign up, not just accredited, expert and institutional investors. Retail investors have access to purchase and trade non-security Real World Assets. Note that the United States is excluded from exchange trading. However, all retail accounts can stake CHEX token liquidity and receive yield in return. Watch how easy it is to join Chintai Nexus and its mission to democratize RWA investor access and transform traditional financial markets:
Phase 1 Test Case: Institutional Account Verification
This case involves creating an institutional account, the most complex account type to establish. A 5-step workflow is required that gathers several KYC, AML/CFT and incorporation credentials to prove good institutional standing; ultimately, the new account is submitted for compliance officer review/approval. Once the compliance officer approval is granted the account will have the capability to create and issue RWA.
US citizens are not currently supported and any KYC request will be rejected. This is likely to change soon, however, with expected limited support for Americans becoming a reality in the second beta phase.
The webcam “liveness” check can be sensitive; a good technique is to bring your face very close to the webcam, then slowly move back until your facial image is captured successfully.
To pass KYC review, all personal information must be carefully and fully entered, including a full name (not just a single name) with salutation (Mr., Mrs., etc.). Phone numbers must be entered in the proper format and belong to you, not someone else. Your address must be accurate and verifiable by postal services. An active (not expired) passport is required.
At this point, the account confirmation has been submitted for review to a Chintai compliance officer. An acknowledgement email notification is received right after submission takes place:
Another email notification is eventually received after a Chintai compliance officer confirms and approves the new account:
Phase 1 Test Case: Banking Deposit
After passing KYC/AML and institutional credential review it’s time to register a banking account and then top-up your account balance with USD (fiat).
At this point the banking request is submitted to a Chintai compliance officer for review. An acknowledgement email is received:
Anther email notification is received once the compliance officer approves the banking request:
At this point, banking has been established and a $100K balance is reflected.
Next, it’s time to create (tokenize) RWA and then issue it.
Phase 1 Test Case: RWA Creation (Tokenization)
Next, we create a new Real World Asset for subsequent issuance using the blue “Add new asset” button on the upper-right corner of the assets window.
There are several steps involved not shown here, including a description of the asset, six required disclosure and due diligence documents, and graphics for the asset itself, both the token and a background image.
Watch this YouTube video showing the creation of another RWA token named TRIM, a brown carbon credit issuance that creates torrefaction improvements in existing industrial processes to combat biomass combustion and brown carbon atmospheric release.
Phase 1 Test Case: RWA Issuance
Now that the JPFR tokenized blue carbon credit asset has been created, we can issue it.
Phase 1 Test Case: Exchange Listing & Market Maker
Now that the JPFR tokenized blue carbon credit asset has been issued it can be approved and listed on the Exchange. Institutional accounts can then perform a Cap Table issuance to act as the maker maker for the JPFR token in the Exchange marketplace. Market makers earn a percentage of JPFR trading fees, in this beta test case it’s 2%.
The Exchange order book shows another beta tester account already has placed buy and sell limit orders in the book (upper-right corner).
Let’s issue 2,000 JPFR tokens for market making liquidity using the Cap Table.
The Token Issuance information shows two JPFR asset holders now. The issuer (my account is ftvooalobxkn) with 2,000 JPFR tokens, and another beta tester’s purchase of 5 JPFR tokens.
The Exchange now reflects my account activity, including a market maker pool of 2,000 JPFR tokens available to sell, and my purchase of 5 CHTE tokens issued by another institutional beta tester account. There are also JPFR buy and sell limit orders waiting to execute.
Watch this YouTube video showing the issuance and market-making of another RWA token named TRIM, a brown carbon credit issuance that creates torrefaction improvements in existing industrial processes to combat biomass combustion and brown carbon atmospheric release.
Phase 1 Test Case: Account Balances
The Balances page supports several account features, including additional bank USD deposits, bank USD withdrawals, RWA token transfers between blockchain accounts, secure (lock RWA token), release (unlock RWA token) and trade/exchange (jumps to Exchange for trading) features.
Phase 1 Test Case: Exchange Trading
At this point, we have established an institutional account that has created and issued three RWA tokens: JPFR, TRIM and REAF. The institutional account has also issued Cap Table market making liquidity for each token:
JPFR: blue carbon credit
TRIM: brown carbon credit
REAF: green carbon credit
We have also established a retail account. Although not covered directly herein, two additional expert and accredited investor accounts have also been created in preparation for testing exchange trading:
Retail Account
Blockchain ID: wqgvthijsxyl
Expert Account
Blockchain ID: yvxuvbksciol
Accredited Account
Blockchain ID: iqhebjunyepv
Institutional Account
Blockchain ID: ftvooalobxkn
Phase 2: Testing CHEX Staking
The second phase of beta testing began on May 29th. This beta adds $CHEX staking related functionality. There are two types of staking:
- Staking in the AMM exchange double-sided (CHEX + USD) pool to provide liquidity and receive trading fee rewards, with the usual associated impermanent loss (IL) risk
- Staking in the blockchain resource lending pool for leasing rewards, with no IL risk; there are single-sided (CHEX only) and double-sided (CHEX + USD) lending pools; the single-sided pool yield is based on 10% of allocated issuance/trading fees, 90% for the double-sided pool
Overview
Staking CHEX takes place on Chintai’s blockchain, not from other blockchains. Once the staking version of Chintai Nexus is released, CHEX holders wishing to stake must:
- Sign-up at Chintai Nexus to establish a Chintai Network blockchain account; accounts do NOT have to go through Know Your Customer (KYC) verification to stake CHEX; however, KYC is required to configure banking and fund USD in an account
- Use the CHEX Bridge to transfer CHEX into the Chintai Network blockchain account
- Stake CHEX in the account (steps presented in this section) to begin earning yield
The act of staking CHEX actually moves the tokens into either an AMM exchange or CHEX resource lending pools, meaning staked CHEX cannot be used for any other purpose, cannot be traded or transfered until the tokens are un-staked from the pool they reside in. Every Nexus account that stakes CHEX is rewarded with a percentage of fees gathered during ongoing RWA issuance, trading and maintenance activities. Rewards are paid in CHEX. Trading fee rewards are paid in real-time. Issuance fee rewards are paid on a scheduled basis throughout the year.
CHEX must be staked longer-term to earn maximum yield.
CHEX Dashboard & Temporary Faucet
In the beta testing environment, the Token Faucet button is used to populate the account with test (not real) CHEX tokens and USD. The upcoming Nexus release will transfer CHEX to accounts using the CHEX Bridge, and USD will be deposited using the banking feature already tested in the first beta.
For testing purposes, use the faucet to mint 100,000 CHEX tokens and $25,000 USD in the beta testing account.
Note, the beta assumes CHEX is priced at $1. The released Nexus version will use the correct live CHEX price.
Staking in AMM Exchange Double-Sided Pool
Staking in the AMM exchange double-sided (CHEX + USD) pool to provide liquidity and receive trading fee rewards, with the usual associated impermanent loss (IL) risk.
First, from the CHEX Dashboard, press the “Stake CHEX” button to stake 15,000 CHEX and a corresponding $15,000 USD in the double-sided exchange liquidity pool. Remember, in this beta testing environment CHEX is fixed at $1 per token.
There is no lock-up period when staking in the AMM liquidity pool. Next, press the “Unstake & Claim rewards” button to unstake 5,000 CHEX and $5,000 USD from the double-sided liquidity pool, also claiming all available rewards.
Asset Balance Features
The Assets Balances area lists every asset belonging to the account. Each asset can be individually managed; specifically, assets can be burned, traded, transferred, staked or unstaked. Additional information is also presented for each asset, including ordering, vesting and AMM liquidity and total asset balances.
Staking on the Assets Balances page is actually an asset protection mechanism, not a staking pool feature. In this test case, 115 CHEX tokens in the account are staked with a 1-day locking period, meaning whenever these 115 CHEX tokens are unstaked they will remained locked for 1 further day before being released into a fully liquid state. The longer the locking period, the longer it takes for the unstaked asset to become fully liquid.
Asset Sales Features
The Asset Sales area is a secondary market of issued RWA available for investment and subsequent trading.
The Nexus beta testing environment provides a Create Company button to allow fast-track tokenization and issuance of RWA tokens for testing purposes. In this test case a new GCE carbon credit was issued in the beta environment to test asset investment features.
Simple AMM Liquidity Add/Redeem
Nexus now supports fast AMM Exchange liquidity adjustments, adding and redeeming CHEX from the AMM liquidity pool for example.
Watch this beta testing video demonstrating the addition and subsequent redemption of 5,000 CHEX tokens from the AMM liquidity pool:
UNDER CONSTRUCTION: PLEASE VISIT AGAIN SOON…
Simple Token Swap Trading
Nexus now supports simple token swaps with slippage tolerance.
UNDER CONSTRUCTION: PLEASE VISIT AGAIN SOON…
Staking CHEX In The Resource Lending Pool
UNDER CONSTRUCTION: PLEASE VISIT AGAIN SOON…
More About Chintai
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