TradeStars 2.0: Bringing DeFi into the NFT Market.
The first Decentralized Exchange for Fractional NFTs where economic DeFi incentives are connected to real life statistical data.
TL;DR: TradeStars 2.0 is the first Decentralized Exchange for trading Fantasy Stocks which values are influenced by real world events. The stocks’ supply are managed by an AMM algorithm in Fractional NFT markets enabling a DeFi Gamification system with economic incentives for users, such as liquidity mining options and the opportunity to earn dividends on purchased stocks.
The tokenization of real-world assets
On top of the exclusive ownership of digital assets that has led to the popularity of blockchain as a secure way of storing value, the tokenization of real-world assets (represented by tokens on the blockchain) is another breakthrough and disruptive use case for this technology.
This arrangement enables anyone, anywhere, to buy or invest on virtually illiquid assets as if you were buying groceries from your favourite e-commerce store. Imagine, for example, an investor in London that easily purchases a portion of a land in Texas without having to go through the hefty paperwork and legal procedures. It will take some time to clear out bureaucracy for this, but the future is bright!
The asset tokenization can be done through what are known as fungible or non-fungible tokens. Fungibility is the property of an item where it can be replaced by another identical item, and the new one would work exactly the same way as the old one (like a $10 bill can be replaced by any other valid $10 bill).
All this changes when items become non-fungible (although two items may appear to be identical, each might have some unique attributes that makes it impossible to be replaced with a similar item). A simple example for this are 2 movie tickets issued at the same theatre. They might seem the same by design, but look for the finer details, and the show timing, the seat number, and even the movie name might be different. Best of luck trying to enter one show with a ticket issued for another!
Non-Fungible digital assets and stake ownership
The non-fungibility made its first appearance with CryptoKitties, an Ethereum-based game where players could collect, breed and trade digital cats; Seems simple, but the concept is so powerful that it soon became the cornerstone of the blockchain-gaming industry. In-game collector items, virtual land, avatars, digital art, the ERC721 standard paved the way to an incredible universe of new and amazing ideas around this concept.
But with the NFT based assets becoming more and more popular and costlier, it is becoming increasingly difficult for ordinary investors to own them. And this is leading to centralizing tendencies within the NFT market. Moreover, users might want to have a stake in all of their favourite collectible or virtual land instead of owning just a couple of high profile ones.
Wouldn’t it be cool to be able to invest or co-own a portion of a digital land giving you access to a proportional rent ? I find it awesome.
TradeStars 2.0 and DeFi Gamification
By tracking and representing through a Fractionable NFT the real life performance of any given event, we can set up NFT markets with economic incentives for investing or holding shares of that NFT. This is, with rewards based on real life events’ outcomes!.
Enter TradeStars. How does it work?
The TradeStars platform can be considered to be a Decentralized Exchange (DEX) for Fractional NFT, where economic DeFi incentives are connected to real life statistical data.
- Athletes’ sports statistics are tokenized with our Fractional NFT implementation where users can trade shares from. We call this shares “Smart Tokens”
- The tokens supply for each NFT Market is managed by a bonding curve that sets the share price seamlessly as per market supply and demand.
- When smart tokens are purchased, the payment gets added to the reserve balance and new smart tokens are issued to the buyer. Since both the reserve balance and the supply are increasing, the purchase of a smart token will cause its price to increase. Similarly, when smart tokens are liquidated, they are removed from the supply, reserve tokens are transferred to the seller, and the token price decreases.
- To ensure that the price fluctuation of the reserve does not affect the market price of the smart tokens, stable coin USDT is used as the common reserve token.
Gamifying DeFi and the TradeStars Governance Token (TSX)
With the Fractionable tokens supply managed by a bonding curve algorithm, we incentivize the opportunity on the buyers or sellers side. But the really interesting thing happens when we introduce the incentives based on the real-life assets’ performance.
Users can stake their USDT equivalent deposits in any of the NFT Markets and our TSX will be farmed and distributed proportional to your shareholdings performance, setting the incentive on the opportunity to spot and buy early those assets that promises the most upside to your investment.
By farming our TSX users will be able to receive a proportional of the platform transaction fees (USDT), unlock new NFT markets, vote and propose platform changes such as transaction fees, markets’ pricing formula, and so on.
TradeStars 2.0 outstanding features
Along with mentioned incentives for users, such as staking and TSX ‘farming’ dynamics, our platform contains an impressive list of outstanding features that pushes the state of the art forward for current blockchain products.
- Almost instant + gasless transactions
- Liquid, fractional NFT markets
- AMM for seamless assets price discovery
- Multi deposit, FIAT onramp ready
- APY influenced by real-life event outcomes
- Community governed
- User friendly, API + UI
- Multiple assets, cross blockchain support (Ethereum + Matic Layer2)
Market Opportunity
The NFT industry has seen a dramatic growth in the second half of 2020, and NFTs are being touted as the future of the art and collectible industry, the gaming industry, and even the real estate sector in some cases.
TradeStars combines the booming NFT industry with Sports, which is not only one of the greatest passions connecting billions of people, but also one of the driving forces of global economy. Sports fans worldwide spend hours every week watching sports games, and shell out thousands of dollars to buy sports equipment and memorabilia related to their favourite athletes and clubs.
TradeStars provides a unique opportunity to introduce billions of sports fans all across the globe to the world of blockchain and NFTs, creating a thriving and flourishing ecosystem for trading fantasy stocks.
Summary:
TradeStars has brought the concept Fantasy Stocks Trading into the blockchain with the tokenization of real-life statistical data into Fractional NFT markets.
It is the first trading platform gamifying DeFi where liquidity providers’ APY is directly influenced by real life event outcomes, and by incorporating state-of-the-art features like gasless meta transactions and bonding curve based market pricing, TradeStars provides sports, and trading enthusiasts an experience like no other.
Watch out this space for more information about TradeStars. To keep updated with the latest developments, connect with us on:
Website — https://tradestars.app
Telegram — https://t.me/tradestarsok
Twitter — https://twitter.com/TradeStarsOK
