Nov 10, 2020
Atomix is a groundbreaking Fetch.ai powered decentralized finance lending platform. Atomix creates liquidity through the introduction of tokens evidencing security taken over real world assets, enabling efficient and flexible collateralized lending for Borrowers, whilst delivering returns for Lenders.
Atomix is redefining liquidity. The system is made up of a real-world asset tokenisation system, Atomix lending protocol and governance system. The diagram below details the main components.
What are the main objectives of Atomix
Atomix will acts as a bridge between collateralized lending against security over real world assets and tokenization. It will take security over real world assets for use as collateral and use tokenization to evidence that security. All whilst delivering liquidity to Borrowers and Lenders
What makes Atomix different
Security over real-world assets used as collateral
Stablecoin loans are made and simultaneously collateralized upon the deposit of tokens evidencing first ranking security taken over real-world assets, including any income produced by those assets. The secured assets can be sold to recover capital which is returned to the protocol. The loans are over collateralized providing greater security. The collateral is stable with low volatility.
Income generation, liquidity and flexibility
Borrowers pay interest on their loans and this provides returns for lenders.
Borrowers can drawdown and repay some or all of their loan without notice.
Lenders can redeem instantly by withdrawing their deposit.
Transparency and trust
The smart contracts including the underlying asset values and loan details are readily available and verifiable. The protocol brings trust by ensuring at all times that the lending is secured against sufficient collateral.
How does Atomix work
The Atomix team has created a DeFi lending platform for tokenizing security over real world assets for use as collateral, enabling market participants to access liquidity through tokenization, whilst delivering efficient and flexible collateralized lending for Borrowers and returns for Lenders.
Atomix unlocks liquidity to traditionally illiquid assets reducing cost and friction. The diagram below details the process.
What are Atomix Tokens
xTokens (such as xUSDT) are minted by the Atomix Lending Protocol and represent a lender’s deposit of stablecoins. xTokens are deflationary tokens that monotonically increase in value. When a lender deposits USDT, the system mints and transfers xUSDT to the lender in return. This xUSDT gradually increases in value over time so when the Lender returns the xUSDT to the system the Lender receives more USDT than they put in.
Atomix Collateral Tokens (ACT)
These tokens are minted by the Atomix Lending Protocol (ALP); 1 ACT will be minted to evidence all of the security taken over a borrower’s asset. This 1 ACT is infinitely divisible allowing borrowers to transfer all or part of the ACT token. The set of fractions of an ACT tokens minted in respect of a borrower’s asset are fungible with respect to each other. However, ACT minted in respect of one asset are not interchangeable with ACT minted in respect of a different assets.
Governance Tokens (ATMX)
These tokens are distributed to lenders who deposit USDT in the system. Confers on the holder the right to vote to govern the changes in the core protocol, product or feature roadmap, staffing and changes to protocol parameters.
Atomix solves the problems found in traditional lending platforms
Traditional lending platform currently have limited supply, limited access to credit markets and poor market liquidity (i.e.. limited secondary markets). Alongside this, they are cumbersome, inflexible and restrictive terms and the markets lack expediency and efficiency due to legacy technology
Atomix solves these problems by combining the positives of tokenization and collateralized lending over real-world assets. Atomix can thus deliver the positives of Defi lending and eliminates the negatives present in today’s traditional lending marketplace.
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