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In recent years, blockchain technology has disrupted traditional financial markets, including how we trade and invest in securities. With blockchain, investors can securely and transparently trade securities without intermediaries or middlemen, reducing costs and increasing efficiency.
Trading Stocks on the Blockchain vs. Traditional Trading
Traditional stock trading involves intermediaries, such as brokers, facilitating transactions between buyers and sellers. This process is often slow, inefficient, and costly, with multiple parties involved in every transaction. Trading on blockchain, on the other hand, removes the need for intermediaries, making transactions faster, cheaper, and more secure.
This is where Liminal.market comes in.
Liminal.market is a groundbreaking protocol that bridges traditional Stocks and ETFs markets to blockchain, making investing in securities on the blockchain easy and safe.
What is Liminal.market?
Liminal.market is a unique protocol that enables users to trade securities (stocks & ETFs) on the blockchain. The protocol utilizes smart contracts to facilitate transactions and opens up the world of DeFi to traders at the same time. Users fund their broker account with a simple bank transfer and can trade securities on the blockchain using Liminal.market's platform.
Liminal.market currently offers on-chain access to more than 5,600 stocks and ETFs, setting it apart from other protocols and providing users with a diverse and extensive selection of investment options.
The protocol offers a range of benefits for users looking to invest in securities on the blockchain. These include complete transparency, enhanced security, fast trade execution, ownership of the underlying asset, and low fees. By leveraging blockchain technology, Liminal.market offers users a powerful platform for trading securities with ease and confidence.
Liminal.market mints aUSD tokens for every funded account, which represents the value of the broker account and is always 1:1 against the dollar. When a user buys security, a new token is created and represents the underlying asset. The token is a standard ERC20 token that can only be transferred to aUSD token when the user decides to sell it. Dividends are automatically paid into aUSD token, making reinvestment or transfer of funds easy.
Benefits to Investors: Collateralized Ownership, Dividends, and full power of DeFi for your securities
Liminal.market offers a range of benefits to investors, making it an attractive option for investing in securities on the blockchain.
Liminal.market stands out from other protocols because it allows users to own the underlying asset when buying security instead of just a derivative of it. This eliminates the risks of the derivatives and ensures a 1:1 collateralized trade for each stock or stock fraction bought through the platform.
Investors receive dividends from their holdings, providing a passive income stream that traditional investments may not offer.
Future features of liminal.market will allow users to lock their securities on the platform, allowing them to mint stable coins, wrap their tokens or use their securities as collateral for loans.
The Off-chain broker database is considered the source of truth in the Liminal.market system, with the blockchain being mirrored by it. Even in the event of a smart contract breach, user securities are still safe and can be rebuilt using the broker database at the current point in time.
What is the Liminal.market protocol useful for?
Liminal.market's protocol can be used in various use cases. DeFi service providers can benefit from Liminal.market's protocol by providing users with a unified interface for their investment portfolio while increasing product selection and revenue by offering securities in addition to crypto tokens.
Developers using smart contracts can also benefit from using Liminal.market's protocol, allowing them to easily create funds that trade in the stock market, automate trading tools and build staking protocols on their smart contract to increase yield for their users.
Liminal.market provides investors with a unified interface for their entire investment portfolio on blockchain, which is particularly useful for those new to blockchain investing. Additionally, the locking feature will allow investors to increase their investment yield.
What’s Planned for Liminal.market?
Liminal.market's long-term goal is to become a DAO, providing legitimacy and accountability to token holders. This will give liquidity to shareholders, who will have voting rights and receive dividends. This will enable users to decide the direction of the DAO, making it a community-operated system.
Liminal.market's groundbreaking protocol is changing how we invest in blockchain securities. Using smart contracts and a licensed broker, Liminal.market provides investors with a safe, transparent, and efficient way to trade securities on the blockchain. With benefits such as ownership, dividends, and voting rights, Liminal.market is becoming an attractive option for investors looking to participate in the growth and value of the underlying asset they hold. Follow their Twitter account to stay in touch.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.