We're glad to announce that we are launching our TestNet v0.1 "Proteus" with a tokenization proof-of-concept.
Our Strategy and the Product Roadmap, to According, there are 5 to Components "Proteus" TestNet v0.1: File Storage, Tokenization, The Identity, Token Swap, and Stellar-Bridge.
This tokenization demo shows a simplified flow of tokenization for users and trust companies. Tokenization refers to the process of converting real-world assets to tokens, and this demo, you will get a hands-on experience of tokenizing your assets through the Rate3 Network.
The Tokenization Process
There are 6 main steps from start to finish:
- User sends in tokenization request
- Users transfers fiat through wire transfers to trustee
- Trustee receivers fiat and verifies user (KYC / AML)
- Trustee approves of the tokenization request
- After the initial approval, there will be a time-locked period in which trustees can cancel their approval
- Final confirmation / second confirmation by trustee (tokens will be sent out) OR revocation of the user's request (tokens are not sent out).
When users want to withdraw in fiat, they will have to put in a trustee too.
- User requests in withdraw in fiat currencies
- Trustee approves and finalizes the request from the user
What does this proof-of-concept show?
This highlights two concepts:
- Minting (or Creation) of new SGDR tokens
2. Burning of SGDR tokens upon successful redemption
The Github repo is here:
rate3 monorepo - includes our smart contracts, projects and developer tools - rate-engineering/rate3-monorepo
The demo is on 3 testnets:
- Ropsten Test Network,
- Rinkeby Test Network,
- Kovan Test Network.
Why is this Proof-of-Concept important?
This Proof-of-Concept showcases the entire flow for both users and trustees, within a beautiful and easy user experience. More importantly, it highlights the core technical elements of minting and burning tokens.
Through building this demo, the team also works out the kinks of a time-locked contract between the trustee and the user.
Step 1: Click “Start Demo”
Step 2: Choose “User”
As mentioned, this proof-of-concept demo will showcase the process flow for both ‘Users’ and ‘Trustees’. We will go ahead with ‘Users’ first.
Step 3: Verify Bank Account and Set Up Wallet
These two steps simulate the actual process of setting up your bank account details, so you can do a wire transfer in fiat later.
Likewise, you have to set up your ETH wallet address to receive the minted SGDR tokens.
Step 4: Select how much to Tokenize
Choose the amount you want to tokenize (i.e how much SGDR you want to receive?)
Step 5: Wire the corresponding amount of fiat currencies over
Since every SGDR-stablecoin is 1:1 backed, you wire the corresponding amount of fiat currencies over to the trustee’s bank.
Step 6: Click “Next”
Choose your gas limit/price, and press ‘Next’.
Step 7: Click “Submit”
Confirm the details (amount to tokenize, gas price).
Step 8: Wait for confirmation
Step 9: Check your Transaction History
Now, let’s take a look at the perspective from a trustee.
In this prototype, the role of a trustee is to approve tokenization requests from approved users who had already completed KYC/AML checks.
Step 1: Set up your Trust account and ETH wallet
Step 2: Approve any tokenization request from list
Step 3: Check the gas limit and price
This step already assumes that the trustee had verified that the users’ wire transfers had entered the bank. Therefore, the trustee will approve the transaction.
Step 4: Wait for Network Confirmation
Step 5: Finalize Tokenization
To ensure security and safety purposes, there is a time-locked contract in place. This means that the tokenization request can only be finalized after the time lock period.
Step 6: Check transaction history
All transaction — pending, successful, or rejected — will be reflected here.
This tokenization POC prototype is only the start. We will continue to build new features on top of this POC:
- Registry modules and compliance layer functionality features;
- Making TokenizeTemplateToken a multi — class token;
- Integrate RTE staking functionalities;
- Handle interactor contract approval/finalization.
Rate3 is a decentralized dual protocol for cross-chain asset tokenization and identity management. The Rate 3 Tokenization Protocol is an end-to-end protocol for tokenization on both Ethereum and Stellar, while the Rate 3 Identity Protocol is a protocol to create and manage a unified cross-chain identity.