Introduction
Liminal.market protocol allows users to buy & sell securities (stocks & ETFs) using blockchain technology, having a real underlying asset, liberating the user from the vendor lock-in. Having the securities on chain opens up new possibilities that the DeFi market provides today.
1:1 Collateralized
When you buy security using Liminal.market protocol, you are buying the underlying asset on the stock market. Other protocols that allow you to invest in stock do not allow you to own the underlying security, only a derivative of that stock. This makes Liminal.market different from all others on the market. Owning the underlying asset eliminates the risk that comes with derivatives. For each stock (or stock fraction) you get an equal amount of token on chain and is ALWAYS 1:1 collateralized.
5600+ stocks and ETFs
Liminal.market already provides access to over 5,600 stocks and ETFs on chain. No other protocol can provide this quantity of stocks and ETFs. Creating a great selection for the user.
aUSD
The user needs to fund his broker account. This is done with a bank transfer today, although USDT support will be arriving soon, making the funding much simpler.
After the user has funded his account, the aUSD token is minted which represents the value you have on the broker account. This is always 1:1 against the dollar, as this token is always redeemable for USD and is NOT tradable on the market. aUSD is a standard ERC20 token, but with the limitation of it can only be transferred to a symbol (SecurityToken) that represents a security.
SecurityToken
For each symbol that is bought, a new token is created. This token is called SecurityToken. It is a standard ERC20 token, with some limitations. It can only be transferred to aUSD token. When the token is transferred to aUSD token, it signals the system that you want to sell it and get aUSD for it.
KYC
Users need to go through the KYC/AML process before they can execute trades. This is a requirement from the stock exchange that all users need to be known.
Escape vendor lockin
With the current trading platform, the user is locked in it. When he starts to trade, he cannot leave easily. To move to another trading platform he either has to sell all his shares or do ACATS transfer, which costs between $50-$100.
With liminal.market, the user simply would login into any platform using his wallet since the data is available on chain it can be read and displayed to him. Eliminating the lockin.
Corporate action
With any publicly traded company, changes are inevitable. These changes are mirrored to the blockchain, minting and burning tokens depending on the action that occurs. Liminal.market handles all the action seamlessly and the user does not need to do anything.
Dividends
Dividends are automatically paid into the aUSD token, allowing the user to reinvest the money easily or transfer it out of the brokerage account with a click of a button.
Voting rights
With cryptographic certainty, we can provide voting with your wallet. Voting information is delivered to the user, and with a simple wallet signature he can vote on corporate actions. Voting with your wallet becomes available 3rd quarter 2023.
Stock splits
Liminal.market handles stock splits automatically for the user, if a new token needs to be created, Liminal.market handles it for the user and a new token appears in the users wallet.
Staking
Staking will be available in the 3rd quarter of 2023. This allows the user to stake his security, take loan at better rate, lower overhead, simpler and quicker using DeFi loan protocols then in the old CeFi system.