ForTube Launching OST: A New Attempt for the Introduction of the Digital Securities Assets into the DeFi Ecosystem
In 2020, DeFi became the most popular field in the digital currency ecosystem. Total Value Locked (TVL) in DeFi has exceeded $60 billion, and the number of user addresses has exceeded 1 million.
The continuous advancement of blockchain technology has witnessed the birth, iteration and evolution of the DeFi concept. Many projects try to migrate traditional financial business to the DeFi ecosystem while copying successful cases in the real world. Last year, the rise and iteration of stablecoins, DEX, and lending platforms have driven the TVL to break new highs. The development of synthetic assets, aggregating revenue platforms and derivatives further demonstrates DeFi’s diversity, compatibility and composability.
However, the DeFi ecosystem still faces many problems. First of all, pledged assets are still limited to mainstream assets such as BTC and ETH , which limits the growth potential of the market scale to some extent; Second, the extreme volatility of digital asset markets has increased the risk of pledged asset liquidation; Finally, the “Lego” feature of DeFi brings the financial contagion risk and magnifies the impact of malfunctions in the pledged asset system and market fluctuations.
In this case, the introduction of real-world physical assets into the DeFi ecosystem has profound practical significance.
Compared with digital assets, the advantages and disadvantages of physical assets are quite obvious. The biggest advantage is relatively stable price, authentic and credible value underlying asset, and huge amounts of funds. Taking real estate as an example, according to “The Business Research” statistics, the global stock of real estate assets will reach US$277 trillion in 2021.
However, at the same time, physical assets have been facing problems such as relatively poor liquidity, difficulty in pricing and price feeds, complex property rights and liquidation procedures, and unclear regulatory systems. The oracle hierarchy, liquidation and ownership transfer mechanisms that have been verified in DeFi have not been fully applicable to physical assets yet.
These essential differences make it difficult to reconcile the contradictions between the two in terms of pricing, liquidation, trading, and governance.
As a new DeFi product to the future, ForTube has launched a fully upgraded version of ForTube V3. The launch of V3 marks the evolution of ForTube from a pure funding pool lending protocol to a comprehensive decentralized cryptocurrency bank, providing users with more features, higher profit, and more flexible value capture opportunities.
ForTube recognizes that the DeFi ecosystem requires richer application scenarios and more efficient financing modes to match. Therefore, introducing real and valuable funds from the traditional financial world into the ForTube ecosystem will undoubtedly promote the healthy development of the entire DeFi industry.
Therefore, ForTube and UPRETS have reached a strategic cooperation for introducing the digital securities asset ($OST) issued from UPRETS into the ForTube funding pool, and regard it as an innovative practice of connecting real assets and digital assets.
UPRETS is a platform focused on bringing Real World Assets into DeFi, backed by a publicly listed real estate conglomerate Xinyuan Group (NYSE:XIN). UPRETS is working closely with leading DeFi projects on mainstream public chains to contribute more high-quality digital securities based on physical assets to the DeFi mortgage pool. UPRETS works closely with the MakerDAO community and became a founding member of the RWA (real world assets) working group, planning to include physical assets in the DAI mortgage pool. UPRETS is also working closely with more public chain ecosystems, such as Binance Smart Chain (BSC), Ontology (ONT), NEO, Polkadot, and others. In 2019, Xinyuan Group announced a strategic partnership with Binance China Blockchain Institute to further the application of blockchain technology in global real estate.
The Oosten real estate invested and held by UPRETS Oosten Fund I LP has now become a new modern residential landmark in Brooklyn. UPRETS’s underlying Xbolt alliance chain technology supports the realization of digital securitization of the fund’s limited partnership equity and the issuance of Oosten digital securities, OST, which realizes the on-chain split of equity to provide investors with a relatively convenient liquidity experience on-chain and off-chain (under the constraint of the relevant contracts) combined legal compliance guarantee.
OST has achieved cross-regional and cross-market exposure, it has also expanded online financing channels (MERJ Exchange), which reaches more ordinary investors and reduces intermediate links and time costs, at the same time, achieving fair competition in the broader market with more liquidity.
After ForTube launches OST, OST token holders can deposit OST to the funding pool and use it as a pledge asset to borrow other digital assets (such as USDT, etc.). It means that users can obtain additional liquidity and value capture opportunities through the ForTube platform.
Through this cooperation, this boosts the DeFi industry to promote the development of assets under the compliance framework in a tokenized manner. More off-chain physical assets can enter the DeFi industry with a more flexible method. While expanding the DeFi application scenarios, this lets valuable assets cover a wider range of users.
* Note: ForTube or UPRETS do not provide investment advice to any users, nor does it bear investment risks for the resulting investment behavior. All descriptions marked with “estimated” are for reference only. For specific investment returns, please consult or pay attention to relevant projects.
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