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IX Swap is building the "Uniswap for Security Tokens and Tokenized Stocks" World’s 1st DeFi AMM & Liquidity Pools for Security Tokens and Tokenized Stocks
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World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

Dec 27, 2021

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Page 1: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap is building the "Uniswap for Security Tokens and Tokenized Stocks"

World’s 1st DeFi AMM & Liquidity Pools for Security Tokens and Tokenized Stocks

Page 2: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

Introduction

One of the more valuable innovations in Decentralized Finance (DeFi) is the deployment of DeFi Liquidity Pools and Automatic Market Makers known as “AMM”. An AMM is a type of decentralized exchange (DEX) protocol that relies on a mathematical formula to price assets using blockchains and smart contracts. Instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm, any investor can participate in the DeFi liquidity pool and earn fees as a benefit. This opens up a plethora of opportunities.

There are currently no liquidity pools built specifically for the security token (STO) or tokenized stocks (TSO) industry , which is a multi trillion dollar asset class under development. IX Swap is the World’s 1st DeFi project focused on a solution to bring liquidity to the secondary trading of Security Tokens (STO) and Tokenized Stocks (TSO), with the first partner exchange being InvestaX, a Singapore licensed security token investment and trading platform. This is an enormous blue ocean investment opportunity for IX Swap.

IX Swap solves the liquidity problem for secondary trading of STOs that is both algorithmic driven and allows for anyone to participate in the allocation of market making capital, and therefore benefit from the subsequent fees of being a liquidity provider. This DeFi solution will bring in a new wave of liquidity to STO trading and solves a key industry problem.

IX Swap is built by a team of capital markets and blockchain experts, both sets of skills and experience are necessary to develop product market fit. IX Swap has also partnered with leading security token platform, InvestaX.

Page 3: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

Liquidity Pools for STO is a Trillion Dollar Market

$7.5 Trillion

$915 Million

Total Private Markets

Total STO Market

Total Private Assets MarketThe total market size for private markets is currently $7.5 Trillion

Total Security Token Market

It is expected that hard assets such as Real estate and Commodities, as well as all types of Securities and Virtual Assets will continue to get tokenized and become easily tradable for a fraction of the current costs. Assets that are currently being tokenized include:

Private Equity

Commodities (Gold, Oil)Real EstateGaming and Virtual Reality AssetsVenture Cap

0.014%

Page 4: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

The Liquidity Premium & Illiquidity Discount

High

Low

Low High

Liquidity

Public Securities

Tokens

Private Securities

More Liquidity

Cost Effectiveness

Page 5: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

Low Trading Volumes for STO and TSO

● Despite the exponential CAGR of STO issuances, the trading volume for STOs are still extremely low compared to other markets.

● Current trading volume at $10.9M monthly or $130.8M annualized.

● A large reason for this is due to the fact that many jurisdictions require licenses to market make, trade and deal such securities, which are often hard to attain.

Page 6: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

The Effect of AMM/Liquidity Pools on Decentralised Exchanges

Prior to the introduction of AMMs and liquidity pools, decentralised exchange volume was almost non existent.

Total monthly DEX volume increased from $39.5m to $43.5b in a year growing by 110,100%.

IX Swap aims to bring even greater volume of liquidity to the STO market.

Jan 2021:$43.5b

Jan 2020:$39.5m

Page 7: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

Problems

Liquidity

STO markets still remain relatively illiquid and trading is almost

non-existent

Long Investments Terms For Private Assets

Global investors currently own a significant amount of security tokens with long investment tenors which lay

idle

Lack of Regulated Market Makers

There is currently a lack of regulated market makers for alternative assets as these assets are illiquid and there has traditionally never been a market for

such assets

Strict Licensing Requirements

License required to deal and sell securities in different jurisdictions

Lack of Trust and Transparency

There is currently a lack of transparency with private assets as by its nature are

“private” and financials are not reported as thoroughly compared to public

markets

Page 8: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

IX Swap Solution

First DeFi Liquidity Solution for STO & TSOs

Automated Market Maker (AMM) purpose built for STOs & TSOs

Interchain Operability

Wrapper token technology allowing for cross-chain asset trading

Unlock the Value of Your Idle STOs

Earn through staking, while your STOs lay idle over the investment period

Low Fees

First STO / TSO Liquidity Pools

First liquidity pools with legitimate claim over real world assets

Licensed Partners

IX Swap has forged partnerships with licensed intermediaries to deal with

the nuances of securities

Significantly reduced fees compared to the 1-2% fees banks charge for

private asset investments

Page 9: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

IX Swap Liquidity Pools

Deposits liquidity in pairs that represent two sides of a trade.

Input: Token ABC + IXS Token

Output: Liquidity Pool Tokens (Represents a share of the assets in the liquidity pool + Fees)

Liquidity Pool

Trader

Input: IXS Token+Fees

Output: Token ABC

Liquidity Provider

● A DeFi liquidity pool is a smart contract that locks tokens to ensure liquidity for those tokens on an exchange. Users who provide tokens to the smart contract are called liquidity providers.

● Liquidity providers can stake their STOs to receive rewards for providing liquidity to the pool.

● IX liquidity pools are trading venues for users who wish to buy digital assets.

Page 10: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

IX Swap Liquidity Pool Mechanics for Custodial Assets (STO/TSO)

Page 11: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

IX Swap Lending & Borrowing

Similar to traditional markets, the loan value will be a % of the asset’s current market value. A smart contract releases the collateral / STO once the loan has been repaid.

This allows STO investors to unlock the value of idle assets to pursue lucrative opportunities while still retaining ability to participate in the STO value appreciation.

Lenders of IXS Tokens deposit their tokens to receive interest from borrowers.

Deposit STO assets as collateral

Borrower

Receives collateral back after repayment

Repays the loan with interest

Obtains loans

Deposits IXS tokens

Lender

Receives funds back with interest

(passive income)

IX Swap

X

Page 12: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

IXS Token

IXS Token is the native currency on IX Swap

IXS liquidity providers will receive a share of the swap fees generated by the pools

IXS will also be the native payment token on our licensed partner, InvestaX CEX platform and will be granted early access to NEW STO listings

On-chain governance capabilities for managing and implementing changes

Pool Fee breakdown:

25% - Reserve Vault for future developments & service costs

60% - Distributed to liquidity providers

5% - Solar Vault5% - IL Insurance Vault5% - Moon Vault

Fee Distribution

(100%)

IXS Reserves(40%)

Liquidity Providers

(60%)

Rewards Distributed as Staking Rewards

IXS MoonVault(5%)

IXS Solar Vault(5%)

IL Insurance Vault(5%)

IXS Reserve Vault(25%)

Page 13: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

IX Swap Staking & Rewards

IXS Tokens can be staked on the platform for rewards and to create liquidity pools for trading.

Token holders can unstake at anytime but will suffer penalties by forfeiting a portion of their rewards for not completing their committed staking cycles. The forfeited tokens are returned to the rewards vault and given as farming rewards for ecosystem providers.

Additional bonus yield multipliers will be applied to token holders who stake for a longer period of time.

Rewards earned from providing services to the ecosystem will vest over a 6 month period and will be paid out weekly.

IXS Liquidity Pools & AMM

Ecosystem / Rewards

Vault

Staking rewards are rewarded to token holder

Token holder stakes IX Token

Completes staking cycle?

Yes

No

Token holder will still receive token rewards* depending on the penalties incurred

Penalties incurred are returned to rewards vault to be

distributed to ecosystem contributors

IL Insurance

Vault

Rewards Vault

50%

50%

Page 14: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

IX Swap Implementation

● Licensed in Singapore Raise Capital STO/TSO

● Secondary market trading STO/TSO

● Custody STO/TSO

IXS Token

Payment & Settlement

Payment & Settlement

Payment & Settlement

IX Swap Liquidity Pool

Creating liquidity pools for secondary trades

IX DEX

Secondary trading of Security tokens

● Staking

● Borrowing

● Lending

3rd Party CEX Exchanges for liquidity pool + AMM integration

Page 15: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

Roadmap

4 June ‘21

Close of Private Sale

4 July ‘21

Smart Contract Audits

25 July ‘21

Testnet for Basic MVP

27 July ‘21

Basic MVP Ready

Aug / Sep ‘21

Token Generation Event

Aug/Sep ‘21

DEX Listing

Q4 2021CEX Listing

Q4 2021

IXS Phase 1.0 Launch - Basic Crypto model with STO wrapper and custody link functionality

Q4 2021

Smart Contract Audit - IXS Phase 1.5

Q4 2021IXS Phase 1.5 Launch

Q4 2021

Smart Contract Audit - IXS Phase 2.0

Q1 2022

IXS Phase 2.0 Launch- IXS Governance

Functionality

- IXS Supply DropFunctionality

Page 16: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

Licensed Exchange Partner for IX Swap

InvestaX is a Singapore-headquartered, MAS-licensed investment and trading platform for Security Token Offerings (STO) of global private markets deals, including private equity and real estate.

Primary Issuance Secondary Listing OTC Trading Exchange

Capital Markets Services (CMS) License Recognized Market Operator (RMO) License

Page 17: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap | Confidential

Founding Team

● CEO TItanium Group, including Titanium Blockchain and Future Block

● Expert in developing products, founder and co-founder of start ups, leading R&D and operations

● Titanium group has 110 employees and has completed over 25 projects globally

• Serial entrepreneur in Asia Pacific• Founded 6 ventures in sectors including social

media, real estate investment development, STO and blockchain/DLT

Jules K. - Lunar Module Pilot

Asaf Y. - Mission Specialist

• Accomplished lawyer with over 17 years of corporate & legal experience across multiple jurisdictions

• Worked at major international firms such as DLA Piper and Skadden Arps

Alice C. - Spacecraft Commander

• Over 10 years of experience in tech development and leading R&D teams that focus on blockchain and machine learning projects

• CTO for Titanium Technologies

Alexander C. - Chief Science Commander

• Over 8 years of capital market and investment advisory experience

• Work at top tier banks such as UBS, DBS & Bank of Singapore

• Investment advisory experience across all asset classes

Aaron O. - Dr. Cosmonaut

• Over 20 years of experience focusing on R&D and business for blockchain, IT entrepreneurship and startups

• Founded 6 companies in the last 13 years with a focus on blockchain tech, finance and economics

• CEO for FutureBlock

Tzahi K. - Commander

Page 18: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

IX Swap Confidential

See you in the future

Page 19: World’s 1st DeFi AMM & Liquidity Pools for Security Tokens ...

DisclaimerThis document is strictly private and confidential. Any terms set forth herein are intended for discussion purposes only and are subject to the  final terms as set forth in separate definitive written agreements. This presentation is not a commitment to lend, syndicate financing, underwrite or  purchase securities, or commit capital, nor does it obligate us to enter into such a commitment, nor are we acting as a fiduciary to you. By accepting  this presentation, subject to applicable law or regulation, you agree to keep confidential the existence of and proposed terms for any Transaction.

Prior to entering into any Transaction, you should determine, without reliance upon us or our affiliates, the economic risks and merits (and  independently determine that you are able to assume these risks) as well as the legal, tax and accounting characterizations and consequences of  any such Transaction. In this regard, by accepting this presentation, you acknowledge that (a) we are not in the business of providing (and you are  not relying on us for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any Transaction, (c) you should  receive (and rely on) separate and qualified legal, tax and accounting advice and (d) you should apprise senior management in your organization as  to such legal, tax and accounting advice (and any risks associated with any Transaction) and our disclaimer as to these matters.

This document is not offering to sell any product. Any transaction requires our subsequent formal agreement which will be subject to internal  approvals and binding transaction documents. InvestaX and their affiliates, (“We” or “our”) will not be liable for any use you make of any  information in this document. We are not recommending or making any representations as to suitability of any product or the tax, legal or  accounting treatment of any product. We are not responsible for information stated to be obtained or derived from third party sources. All opinions  are given as of the date hereof and are subject to change. We are not obliged to inform you of any such changes.

Any simulated performance data and/or past performance data contained herein is not a reliable indicator of future performance. Income from  investments may fluctuate and investors may not recoup the amount originally invested. Any forward-looking statements concerning the financial  condition, results of operations and businesses of InvestaX, and their affiliates, expressed or implied, are based on management’s current  expectations and assumptions, which may change without notice, and are no guarantee of future results, performance or events.

This document is confidential. No part of it may be reproduced, distributed or transmitted without our written permission.