In a few days, FinNexus launches one of the first post-COVID-19 token distribution events. The FNX token will be available available for purchase on Bitrue starting May 11. This post is modified from my colleague's recent post. Go check it out for a more complete story!

What Is a Crypto Supermarket?

You know how, especially these days, a trip to the supermarket can be one of the most fun you can ever have? Down this aisle are the potato chips. Down that one is the beer. Over here you have fresh veggies and meat. Over there is a whole section of cheeses right beside the stack of rotisserie chickens. Everything is in one place, easy to reach, colorful and enticing.

That's what we hope the first iteration of FinNexus' supermarket for crypto will feel like. A bunch of enticing options everywhere. On one page will be tokenized assets with real world value. On the other a fun game. Up front by the cash register, you might pick up some options products on the way out.

The first asset to be put on the FinNexus' grocery shelves is UM1S, offered in conjunction with its token distribution on Bitrue starting on May 11, which is a short-term corporate bond-like tokenized asset offered by an Indonesian microloans platform. The UM1S token will give crypto investors the chance to earn an attractive fixed interest rate on a tokenized stream of cash flows offered by a reputable company, in contrast to what you get on other savings assets offered by centralized exchanges — a promise of return from the same counterparty, who is likely trading against you and with whom investors are letting custody their digital asset. That’s not safe!

For the investor’s convenience, interest on the asset will be paid out in USDT at the end of the life of the token, which is scheduled to occur precisely 3 months after FNX begins to trade on Bitrue. Although UM1S is only available to those who participate in our ICTO on Bitrue, later tokenized assets that utilize this model will be able to be purchased directly through the FinNexus platform. Purchasers will be able to manage it as one of their assets through their Wan Wallet or, in the case of other on-chain assets like XRP (see video), FinNexus will partner with a reputable wallet provider of that chain.

Following the launch of this first asset, UM1S, offered in tandem with Superatom, FinNexus will onboard further digital assets that use this Assets Distribution Protocol (ADP) — read more about ADP in our 2020 roadmap! — in cooperation with other with other organizations.

The Significance of Tokenizing Real World Assets With Real Value

The tokenized bonds launching with FinNexus 1.0 are a direct response to the DeFi pain points identified by FinNexus CEO Boris Yang when he started this project (diversity, convenience, & value). These assets give crypto investors options for diversifying the risk/return profile of their investment portfolios while still taking advantage of all the advantages brought by blockchain technology. In contrast to short-term fixed-rate investment products offered by centralized exchanges that typically pay interest based on returns from quantitative trading of cryptocurrencies, the assets tokenized using FinNexus’ ADP protocol cluster will not be exposed to the same systematic risks such as a crash in cryptocurrency prices or a technological failure of the quantitative trading system’s AI. The FinNexus platform will make the entire process simple and easy to manage, even for newcomers to the blockchain world who may be unfamiliar with blockchain wallets, private and public addresses, etc.

“Compared to cryptocurrencies, our ADP-based assets can resist systemic risks such as market crashes. They are a good option for investors who wish to hedge the risk of investing in crypto, but still wish to invest in blockchain products.” — FinNexus CEO Boris Yang

This protocol is an interesting hybrid as it really is targeted toward enterprise use but for public consumption. UM1S is first in a series of tokenized products of real world assets. So the cash flows of, in this case a Southeast Asian lending platform Uangme, are what create the return on the UM1S token, which coincidentally will be released on Wanchain. UM2S, UM3S, … UMnS… will be similar tokenized products of real world assets that are created using our ADP protocol. For example, UM1S is on Wanchain; UM2S wil be on XRP; UM3S could be on another chain. We also plan to offer this service to other enterprises that are looking to tap into the crypto markets as an alternative source of funding. So, theoretically, there could be another series of tokenized assets TX1S, TX2S, …. TXnS… and so on.

What’s most exciting is that, in addition to these diverse bespoke tokenized assets based on actual real world value, FinNexus platform users will also be able to mint their own collateralized bitcoin options tokens. The team is working hard on this initiative right now and hopes to release by the end of Q2 or maybe the beginning of Q3. With the ADP-based tokens and these options products, you can really see how the FinNexus as crypto supermarket strategy is shaping up quite nicely these days!

Moving Forward

FinNexus is currently supporting development for three different products:

1. Wandora Box — a fun price prediction game where you can use WAN tokens to guess on where the price of WAN, ETH and BTC is going… and earn WAN if you guess correctly!
2. Real World Tokenized Assets — a collection of tokens created by our ADP protocol cluster where the inputs are 1. the collateral portfolio of different real world assets, 2. the stablecoin or other crypto token (USDT, USDC, DAI, USDX, XSGD, etc.) used to settle the principal and interest upon expiration, and 3. the type of blockchain that the token rides on (WAN, XRP, ETH, etc.)
3. Fully Decentralized Bitcoin Options Protocol — FinNexus will use WAN’s existing cross-chain protocols with Bitcoin and Ethereum to pioneer a protocol suite for the fully decentralized issuance of tradable options tokens for Bitcoin. Later, other crypto-assets and tokenized real assets will be added to the options platform.

More info on FinNexus' token event can be found here and here.