Sumotex AssetFi Protocol is a tokenization blockchain focused on fractionalizing off-chain illiquid holding and transferring them on-chain to secure liquidity. Generally, the real estate economy and traditional finance industry share a common liquidity problem. So, in 2021, Sumotex developed AssetFi to bring tokenization and fractionalization to real estate.
Traditional Finance And Centralization
Economic growth cannot occur without traditional finance, as the latter initiates the former. Worldwide, economic development happens at 9 percent per annum. The world’s finance market currently amounts to 22.5 trillion dollars, marking 24% of the global economy.
Individuals, firms, and governments are entities in the books of finance, which is why it is an integral aspect of human existence to be economically inclined. In addition, different organizations, such as banks, and insurance companies, among others, render financial services.
Nevertheless, this system of finance falls under central control. This is the origin of centralized finance. However, the system suffers a few drawbacks that makes it less reliable.
Banks or financial firms carry out lending, borrowing, bank savings, and remittance in a centralized finance system. Hence, people who enter the financial market are constrained by the dos and don’ts of the procedure laid down by corporate entities. These corporate entities are the central banks and the government.
The setbacks in a centralized financial system exist because many financial organizations are restricted to their financial regulations. This creates money costs among consumers. Also, in a CeFi system, most financial indulgences take months to finalize.
Sumotex Reroutes Finance From CeFi To DeFi
Sumotex seeks to solve these problems through its decentralized blockchain – AssetFi. The AssetFi protocol mobilizes investment companies and asset managers under a decentralized system. Ultimately, it comes with a hybrid governance model that allows asset managers to raise funds and receive investments off-chain.
The governance protocol includes investment protocol and lending protocol. One of its objectives is to unveil a new strategy for conducting traditional investment and fundraising. The first project to provide fragmented control over physical and metaverse real estate on AssetFi is Sumotex.
Sumotex is looking to obliterate the obstacles to traditional investments due to insufficient capital. It features a list of tokens performing distinct functions on AssetFi. For example, the Sumotex Scrutinized Tokens (SST) or identity tokens, the Fund Subscription Tokens (FST), and SMTX.
SST are minted when a user takes an asset-supported loan from the lending pool. Then, validators burn the collaterals according to the loan amount to remit whatever is owed.
Fund Subscription Tokens (FST) are minted whenever a fund or asset is integrated with the protocol. Users can exchange these tokens for SMTX for profits. The network automatically burns them whenever an asset or a fund detaches from the chain.
SMTX, the network’s hybrid asset-backed token, is the native token of Sumotex. It is the blockchain’s main supported transactional asset. According to its tokenomics, Sumotex deployed 1 billion SMTXs into circulation.
The SMTX protocol allows financial institutions and fund managers to tokenize or liquidate their assets. This is due to the solution it brings to institutional finance. With its divisibility feature, investors can own tokenized real estates without restrictions on borders.
SMTX presale price is $0.07 with a launch price of $0.1. As a utility token, SMTX’s value will increase when more of the asset gets acquired.
Before an investment firm is inducted into AssetFi, it will undergo a brisk onboarding process organized by the network. Afterward, they will be granted access to the AssetFi protocol marketplace. Interestingly, asset custodians are free to tokenize their holdings.
Essentially, the AssetFi protocol will lead finance toward fusing CeFi and DeFi. Also, it will reveal how to realize total decentralization of lending and investment. Sumotex is the one-man army set to march finance into decentralization territory.
Our Use Cases:
Sumotex has a $3.5 million real world use case with an Malaysian wellness center, Danai alongside with the partnership with UBB. Together, they will integrate the health and wellness industry with the AssetFi blockchain. Danai Medi-wellness firm is committed to promoting human wellbeing via a fused wellness service.
Furthermore, Sumotex has a secondary deal with Homevest Global, a property investment and management firm, to offer financial services to AssetFi investors. The firm is offering a $2.5 million income generating residential asset portfolio in Malaysia to customers. Homevest provides affordable real estate properties to clients.