Sit back, fasten your seat belt and get ready for a lift off!
IX Swap dominates my telegram across several newsgroups, including KuCoin. As a curious trader myself, I did extensive research to better know the first decentralized exchange for security tokens and tokenized stocks; only to find out that there have been more interesting reasons why a trader should check out IX Swap.
What is IX Swap?
First, this fact will definitely make you finish my article. IX Swap is the first ever platform to provide liquidity pools and automated market making functions for the security token (STO) & tokenized stock industry (TSO).
You know how digital assets become gradually dragged down to its infancy stage, and traders consider this as a setback to the market. There is an underserved part of the market that needs to be focused on, including the lack of liquidity. Unfortunately, STO and TSO are being hindered by the lack of liquidity despite its clear potential.
What is IX Swap for?
Based on my research, there are five (5) problems that IX Swap is trying to address. You may read their litepaper for a more detailed explanation. But based on my understanding, they are facing these problems:
1. Not enough market making services due to the limited market makers.
2. STOs do not have a central depository, which results in low liquidity when users exchange their assets.
3. The STO is a totally complex industry and has strict licensing requirements.
4. As I’ve mentioned in number three (3), the licensing requirements are often hard to attain.
5. Last but definitely not the least, real assets in decentralized protocols don’t get enough exposure.
With this, how can IX Swap help the current situation STOs and TSO if they are still new in this industry?
IX Swap will take a big role in providing liquidity to the secondary trading for the STO and tokenized stocks. Together with its partners and blockchain experts, the network developed the Automatic Market Makers or known as “AMM.”
In simplest terms, AMM is a decentralized exchange protocol that uses mathematical formulas to price assets using blockchain and smart contracts. This will automatically allow any investor to participate in the DeFi liquidity pool and earn benefits such as discount fees etc. It is a great idea to have any investor in the DeFi liquidity pool while allowing them to experience advantages in return.
If you would ask me what’s on my mind when I read this part on their litepaper, I thought of staking my STOs because for sure, there will be sharing of fees in return. I am indeed impressed by the story behind this network, and their mission in bridging CeFi and Defi is commendable.
To wrap things up, their main mission is to use blockchain technology to build liquidity solutions and infrastructure for the security token ecosystem, while providing trading and global access to these. I just hope
I hope there will be more news and reviews about IX Swap because the information is very limited. This discussion is a very interesting topic, so I am writing this article to let my co-traders know the importance of a liquidity pool for STO and TSO.
What should you check out on IX Swap?
Their native token is called IXS. This will serve as the incentive rewards for contributing to the ecosystem. One of the reasons why you should have an eye on this token, is that, IXS will also be the native payment token on the InvestaX— a licensed security platform based in Singapore. Who would not recognize InvestaX? They just provide key infrastructure to digital real assets.
Three reasons that caught my attention while reading their token description:
1. Once I become an IXS Token holder, I will be able to stake my holdings to receive a share of the swap fees.
2. On paired pools, IXS paired pools will have boosted returns over non IXS paired pools
3. KuCoin featured IXS as their 14th Spotlight Token Sale.
KuCoin Spotlight is a very promising token sale activity on KuCoin. It is their way of helping newly released tokens. KuCoin Spotlight will totally make the way for IXS to be known in the market.
I haven’t joined since it started a few hours ago but I might as well update this article once I’m done joining the token sale. However, I jot down all things you need to know before participating.
1. Have KCS holdings of at least 100 KCS
2. KuCoin will be randomly taking 5 daily snapshots of KCS holdings to determine each user’s KCS holdings
3. Save the dates: September 3 is the starting date of the token sale, and will end exactly on September 8, 2021.
See the full details here.
Let’s have a healthy discussion in the comment section. I will update this article with my very own experience and some tips for you once I’m done joining the 14th Spotlight. For now, I am reviewing everything I can to better know this token.
Happy trading, everyone!