Home Altcoins News Staking on TradeFinex: A Smart Way of Using XDC

Staking on TradeFinex: A Smart Way of Using XDC

TradeFinex XDC staking

In a competitive and innovation-oriented world, trade financing emerges as a pivotal element for sustainable job creation and economic growth. Consequently, there has been a rising demand for alternative investments in the critical infrastructure industry and the Nano, Micro, Small, and Medium Enterprise (NMSME) sector, especially due to their diverse financing needs.

Built on top of XinFin’s hybrid blockchain network, TradeFinex is the first-of-its-kind, decentralized marketplace connecting financiers and innovators. Primarily involving three categories of participants—Suppliers, Beneficiaries, and Investors—the platform enables projects and NMSMEs to tap into a global network of investors for crowdfunding their endeavors. Furthermore, the intuitive use of technology ensures lower financing costs, greater automation and auditability, as well as faster settlements as compared to traditional methods.

As a part of the XinFin Digital Contract (XDC) network, TradeFinex also represents one of the many use cases of the XDC token, which financiers can stake to participate in real-world pilots deployed on the platform. In turn, this widens the scope for a wide range of alternative investors, such as asset funds, hedge funds, family enterprises, high-worth individuals, and so on.

Staking XDC on TradeFinex

TradeFinex is an open platform that stands true to the principles of optimal decentralization, meaning that anybody can participate as a financier. However, to ensure stability and security for all, there are two predefined conditions which the user needs to meet—compliance with regional KMC/AML regulations and ownership of XDC coins worth 1 million USD, as per the current market rate on Yahoo Finance. On the other hand, originations on TradeFinex come from regulated Fintech projects, thus ensuring a secure and scam-minimized ecosystem for investors.

In general, the possibilities for investment options—both in terms of volume and variety—are nearly endless, including bonds, letters of credit, bills of landing, e-bills, and other P2P channels. At the time of writing, however, alternative investors have the following options:

  • Validus and Funding Societies: P2P, Singapore
  • Funding Societies: Bill of Landing
  • Enigio: e-Bill
  • [3 More originators going live soon]

Payments & Returns

Ensuring optimal ease-of-access, TradeFinex facilitates multi-channel payments and transactions. These include tokenized digital money, legacy banking channels, and XDC-collateralized stablecoins.

For instance, financiers can invest using any of the Globiance-issued assets, which include fiat-pegged stablecoins such as SGDG (Singapore Dollar), EURG (Euro), HKDG (Hong Kong Dollar), and USDG (US Dollar), among others. Understandably, thus, these options make TradeFinex accessible to users from Asia, Europe, and America, with further plans to accommodate Africa as well.

At this point, it’s crucial to note that TradeFinex functions through smart contracts deployed on the XDC blockchain. Thus, any fee pertaining to the use of these contracts has to be paid using the $XDC utility token. This includes the cost of recording buyer/seller obligations on the blockchain for purposes like conflict resolution and so on.

In terms of yields from staked XDC, financiers on TradeFinex can expect 2-8% APY, determined and backed by real-world transactions. Financiers can receive their interests through legacy banking channels, tokenized digital currencies, or XDC. 

Final Words

One of the distinguishing marks of TradeFinex is that it coherently and deterministically links events on the blockchain to those in the real world, thus ensuring a heightened reliability and stability vector. 

In the future, as the pilots on TradeFinex make their way towards success, the platform could potentially be connecting over USD 30 trillion’s worth of trade finance originations. Furthermore, the platform will enable seamless and fully-decentralized interactions between on-chain and off-chain events, thus laying the foundation for an evolved trade finance industry. 

If you like the article, feel free to send a tip in XDC to:

Address: xdc4954b7C77641C581149Cd01664a4E9F167F64930

Or any other Cryptos via this link.

Read more about:
Share on

Ruslan Wing

Ruslan Skyler Wing Senior Civil Engineer at PBM Construction in Germany

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.

Get the latest updates from our Telegram channel.

Telegram Icon Join Now ×