ISSUAA is a next-generation DeFi protocol that leverages the power of synthetic tokens to allow decentralized traders to remain in the realm of blockchain but capture the value of traditional financial instruments, commodities and stocks.
Minting Traditional Assets On Chain
Decentralization and DeFi have certainly changed the way we look at finances now. Based on protocols that legacy economics and finances cannot run on, the innovative methods and benefits are astounding. Lower fees, increased interest rates and non-stop trading are just a few of the benefits that stock markets and other traditional trading setups can take advantage of.
This is where ISSUAA steps in. The protocol is a completely decentralized setup with on-chain governance that allows for different financial instruments, both crypto and real-life derivatives (precious metals, stocks, commodities etc.) to be traded through the use of synthetic tokens.
More Efficient Than the Competition
While there are other platforms similar to ISSUAA that offer synthetic tokens and allow for traditional assets trading on decentralized systems, ISSUAA changes the game with its unique features. Unlike others where over-collateralization is a must, the protocol forgoes this with the issuance of both long and short tokens on every asset that is connected. This significantly increases the capital efficiency of the collateral, which is paid in USD stable coins, but this is not the only advantage of this concept.
ISSUAA offers a new income stream for liquidity providers. Once they have their synthetics in the market, they earn 0.25% of each trade made. Their income is further enhanced with a weekly reward of the native DAO based IPT token. Usually, this activity comes with a significant price risk in case the value of the assets in the liquity pools change. The concept of long and short tokens allows these investors to significantly reduce their risk. As they can provide liquidity in both the long as well as the short pool of an asset, any price changes of the underlying asset nearly offset each other..
With the global equity trading reaching $37.7 trillion in the second quarter of this year, the potential to unlock the traditional market’s value in a decentralized setup can bring in higher profits and yields to investors who would like to remain within the crypto-verse, but gain access to traditional markets.
DAO with IPT
Staying true to the concept of complete decentralization, ISSUAA protocol will not be run by the developers, but the community and traders. This is achieved with the formation of a DAO (Decentralized Autonomous Organization), a system where the people participating in the ecosystem are given the right to determine the operations and the direction of a platform.
The DAO will be run through its governance IPT token. With a limited amount (100 million tokens in total), the tokens will give voting rights to the holders. Apart from this, the token is also designed to generate value for its holders as 0.05% of all trading volume generated on the platform will accrue for the IPT token.
The IPT will be distributed in a fair launch mechanism, with 60 million IPT going to users of the ISSUAA platform. A significant amount of this will be rewarded initially, with 3% of the rest distributed weekly to ensure that people who join later on can also benefit.
Running on the Ethereum second layer solution Polygon, all assets will be minted with USD based stable coins, offering freedom from crypto volatility. The selection of Polygon is not without reason. The network has extremely low fees and a higher TPS, which means that the ISSUAA based traders and investors are free from worrying about high gas costs or delayed transactions.
With a qualitative and next-generation setup, ISSUAA’s trading community goes beyond mere investments and all parties get to interact and control their own future through the DAO votes, giving others a chance to also join it.