TradeStars economics and outstanding features
Along with mentioned incentives for users, such as staking and TSX ‘farming’ dynamics, our platform contains an impressive list of outstanding features that pushes the state of the art forward for current blockchain products.
- Almost instant + gasless transactions
- Liquid, fractional NFT markets
- AMM for seamless assets price discovery
- Multi deposit, FIAT onramp ready
- APY influenced by real-life event outcomes
- Community governed
- User friendly, API + UI
- Multiple assets, cross blockchain support (Ethereum + Matic Layer2)
The TradeStars platform
The TradeStars platform can be considered to be a Decentralized Exchange (DEX) for Fractional NFTs, where economic incentives for users to stake in the game are connected to real life statistical data.
Leveraging our team past experience in the Fantasy Sports and Gaming industries, we created a crypto-economic game based on the trading of virtual assets that would represent real-life statistical performance.
- Real life statistics are tokenized with our Fractional NFT implementation where users can trade shares from. We call this shares “Smart Tokens”
- The tokens supply for each Fractional NFT Market is managed by a bonding curve that sets the share price seamlessly as per market supply and demand.
- When Smart Tokens are purchased, the payment gets added to the reserve balance and new Smart Tokens are issued to the buyer. Since both the reserve balance and the supply are increasing, the purchase of a smart token will cause its price to increase. Similarly, when Smart Tokens are liquidated, they are removed from the supply, reserve tokens are transferred to the seller, and the token price decreases.
- To ensure that the price fluctuation of the reserve does not affect the market price of the smart tokens, stable coin is used as the common reserve token.
Tracking real-time and historic statistics for these NFTs added another component to the formula that would be a factor of influence while determining it shares’ final price. Much like in the real-world stock exchange, hard data would influence the perceived dividends for the stockholders (more on this later) helping determine the new price for the trading shares and setting the incentive on the opportunity to spot and buy early those assets that promises the most upside to your investment.
TradeStars’ core focus is to enable sports fans around the globe to be able to use the platform in a friendly and natural way. Here’s how the simplest use case for a user interacting with the platform works:
- Once registered on the platform, the user can fund their account with any of the supported payment methods, or use an external web3 compatible wallet to fund it using any supported ERC20 token.
- Users can now purchase or liquidate Smart Tokens of any of the unlocked Fractional NFT markets .
- While holding Smart Tokens in their portfolio, and according to the scoring rules, users will receive dividends in the platform main token (TSX).
- Users can stake TSX to unlock new Fractional NFT markets, participate voting in platform Governance decisions, and entitle a percentage of the generated platform transaction fees.
Fractional NFT markets
- Fractional NFT markets are the main items on the TradeStars platform and can be compared to the liquidity pools seen on conventional decentralized exchanges.
- A Fractional NFT market is composed by the real-life performance of a sport player tokenized through the Fractionable NFT and its circulating supply of shares or “Smart Tokens“. It provides automated liquidity managing its shares’ supply and price validation using a parameterized bonding curve.
- Users can purchase and liquidate Smart Tokens at these markets and, by using a common reserve as medium of exchange (stable coin), all of these tokens are interchangeable inside the TradeStars platform.
- As we defined earlier, these tokens are transferable ERC-20 compatible tokens that are created and destroyed by the holding Fractionable NFT, providing automated liquidity.
- Each of these tokens represents a fraction, or a share, of the emitting Fractionable NFT, and users can trade, hold, purchase or liquidate these tokens at anytime against the TradeStars smart contracts in exchange for the reserve token. (more on this later)
Network Token and Smart Tokens exchangeability.
- As all the Performance Smart Tokens use the same reserve token, they form a network of tokens. The common reserve token can be described as a network token which captures the combined value of the network of smart tokens which hold it in reserve.
The TradeStars Governance Token (TSX)
The native digital utility token of the TradeStars Platform (TradeStars Token) is a major component of the TradeStars’ ecosystem.
TradeStars Token will be issued as ERC-20 standard compliant digital token on the Ethereum blockchain, and it is designed to reward participants who interact within the TradeStars Platform.
TSX is the vehicle to drive alignment and participation in the platform, and TSX holders should be people who interact with the it in some way, are committed to its future development, and want a seat at the governance table.