Secondary Market

Introduction to the Redesigned Secondary Market for Tokenized Assets

The concept of a secondary market in the realm of asset tokenization brings a revolutionary shift in trading tangible assets within a digital framework. Our redesigned secondary market aims to enhance this experience by introducing more sophisticated, user-centric options for trading On-Chain Securities (Tokens). This platform not only fosters liquidity and transparency but also incorporates advanced technologies to ensure fair pricing and secure transactions. Below is an overview of the newly proposed market options, each tailored to meet diverse user needs and preferences.

Market Options in the Secondary Market

1. Proposed Listing:

   • Functionality: This decentralized marketplace allows users to list their tokenized assets, setting their own prices and descriptions.

   • Asset Price Verification: Users can opt for official verification of their asset prices through an approved company. This verification, stored as a zero-knowledge proof, lends credibility and reassures potential buyers of the asset's value.

   • Encryption and Verification: Additional data related to the approval is encrypted within the "approval struct", enabling users to filter and view only verified assets, ensuring they don’t purchase overpriced listings.

2. Liquidated Listings:

   • Purpose: This section of the market deals with assets from overcollateralized loans. If a borrower fails to repay, the collateralized asset is liquidated here.

   • Pricing Mechanism: The price is determined by a liquidation protocol, ensuring assets are sold at a discount.

   • Automated Market Maker (AMM) Consideration: An AMM could potentially replace traditional listings for these assets. The AMM's advantage lies in its ability to provide continuous liquidity and price determination. However, this needs to be weighed against the personalized aspect and potential higher returns of individual listings.

3. Requests:

   • Activation by Owners: Asset owners can toggle the "Request" feature on or off for their assets. When activated, other users can send purchase requests directly to the asset owner.

   • User-Driven Pricing: Potential buyers can propose their own prices when sending requests, which the asset owner can accept or negotiate.

   • Negotiation Feature: If the initial request is not accepted, a text-based negotiation protocol allows for back-and-forth communication to agree on a mutually acceptable price.

Conclusion of Introduction

The redesigned secondary market for tokenized assets is geared towards providing a more dynamic, secure, and user-friendly platform. From self-listed properties with verified pricing to an innovative approach for liquidated assets and direct request-based transactions, the platform caters to a wide array of investor preferences and strategies. This market not only democratizes access to real estate investment but also ensures that each transaction is transparent, fair, and compliant with the highest security standards. By integrating these diverse market options, we aim to create a vibrant ecosystem where tokenized assets are traded with utmost efficiency and reliability.