LandX for the Layman, Part 3 — The Capital

LandX uses three types of tokens: xTokens, cTokens, and xBasket

LandX solves a complex problem, which is why it requires a complex solution. If you’re reading this, you’ve probably asked yourself

“With all this capital changing hands, how do I know there’s not a Ponzi scheme going on behind the scenes?”

Excellent question, future farmer! We’re proud you’ve come so far.

And as a reward, let’s take an uncomfortably deep look into exactly what happens with all these moving parts.

Are Loans Secure?

Before getting their hard-working hands on those juicy xTokens of ours, farmers have rigid criteria they must meet. These eligibility requirements are absolutely necessary to keep all parties involved safe from disaster.

1. KYC (Know Your Customer) — We’re not up for casual lending. So to qualify, every farmer we onboard must complete verification through one of our partnered validators.

2. After getting to know each other, LandX and farmers are ready to take it to the next level. To determine how much capital can be borrowed, we find the maximum allowable crop share (MACS) for every type of crop. This is a percentage of a farmer’s total farmland annual production.

3. Next, farmers sign legally binding lien contracts using farmland as collateral. This means that if a farmer does not make their loan payments, ownership of the land used as collateral will be transferred to the protocol.

4. In addition, farmers must hold 12 months of crop share payments AND an additional 12-month security deposit in the LandX platform.

Now that repayment is secure, you might be asking yourself,

“But LandX, what do you DO with all that glorious grain flowing into your pockets?!”

We spin it right ‘round, baby, right round. Like a record.

Right back to you.

These fees enable LandX to pay yield to $LNDX stakers, fund our treasury, and provide education, research, training, and other resources for sustainable farming through the LandX Choice Fund.

But these words are as meaningless as “Steady lads, deploying more capital” without backing them up. That’s why we’re more transparent than a jellyfish’s ghost (thanks for that one, ChatGPT 👎)

We encourage everyone to put our Dune Analytics dashboards to good use and peer behind the curtain into our tokens and wallets until your hearts are content.

Have more questions about treasuries, $LNDX, or the meaning of life?

We answer all these questions and more in our next edition of LandX for the Layman!