The core idea of Smartlands Platform is tokenization of agricultural assets and providing liquidity is crucial for proper tokenization of assets.
Unlike other tokenization protocols, we don’t take liquidity for granted, understanding that ability to trade tokens in principle does not automatically mean it will be easy to sell, once investor decides to quit the investment. Inability to sell quickly and efficiently, totally undermines the idea of achieving liquidity through tokenization. We see standardization of legal framework, rules and extensive monitoring as key tools to achieve liquidity (as well as transparency and accountability) of ABTs issued on the Platform.
Ability to trade assets on an exchange is essential for provision of liquidity and Stellar network is perfectly suitable for this. All the assets created on Stellar could be safely, securely and conveniently traded at low cost on the Stellar Distributed Exchange (SDEX), therefore ABTs issued on Smartlands will be tradable right after ICO. For example, SLT became tradable on SDEX just few hours after the ICO.
Moreover. SDEX has significant advantages over regular exchanges:
- Transparency and safety – distributed ledger stores both balances held by user accounts and offers that user accounts make to buy or sell assets.
- Transaction fees are neglectable – only 0.00001 XLM per operation or ~0.000005 USD at current prices
- No fees for deposits and withdrawals of assets issued on Stellar (though fees to anchors for deposit/withdrawal of other assets may apply)
SDEX on Stellar made way for creation of better, more efficient and capable Smartlands platform to tokenize assets.
Given there are certain peculiarities of using SDEX compared to regular exchanges, Smartlands created Tutorial guidelines for trading of assets on SDEX. You can find them below.
Create a Stellar account
(skip the step if you already have a Stellar account)
- Go to https://stellarterm.com/#account
- Click “Generate Keypair” button (see drawing below)
- Save a keypair generated by StellarTerm (see drawing below)
NB: Don’t use the keypair on the picture below – it is provided for illustration purposes only. Anyone is able to control this account.
- Transfer sufficient amount of XLM to your account. In addition to net amount of XLM that you want to use, sufficient amount should include the following amounts that define minimum account balance:1 XLM is required to activate an account
+0.5 XLM is required to add each trustline. To trade any asset (e.g. SLT) you need only one trustline. Trustline creation is described below.
+0.5 XLM is required to put any offer that is not executed immediately – e.g. the lowest ask is 6 XLM per an asset (e.g. SLT), while you create an offer to buy the asset for 5,5 XLM. If your offer is executed immediately you don’t need additional 10 XLM on your balance – e.g. there is an offer to sell 1000 SLT at 6 XLM and you put an offer to buy 500 SLT at 6 XLM (or higher).
+~0.5 XLM to cover transaction costs (0.00001 XLM per operation)
XLM can be transfered to your account from any exchange that trades XLM. The list of such exchanges is here: https://coinmarketcap.com/currencies/stellar/#markets
Add a trustline for an asset on Stellar
- Login to your account with your private (secret) key.
- Once you login, you will be forwarded to “Account” tab. Go to “Accept assets” sub-tab (see drawing below).
- Press on “Accept [asset name]” (e.g. “Accept SLT”) button in front of the banner with information about the asset (see drawing below).
Trade assets (tokens)
- Go to markets tab (see drawing below).
- Click “trade” link in the row with the respective asset, e.g. SLT (see drawing below).
- Scroll down to see the form for placing bid or ask offers. Enter price and amount in the relevant fields, press “Buy [asset name]”/”Sell [asset name]” button (see the drawing below).
Notes on placing offers on SDEX
Your offer will be executed at the best available price, so you can set higher price to buy SLT than the best ask available (or lower price to sell than the best bid).
All offers on SDEX are sell offers. E.g. offer to buy SLT with XLM is actually an offer to sell XLM for SLT. It makes difference when placing a bid (buy offer) with price higher than the best ask (sell offer). For example, the best ask is to sell 1 BTC at 60 000 XLM/BTC and you place an offer to buy 0.5 BTC at 80 000 XLM/BTC. Since it is an offer to sell 40 000 XLM (0.5*80 000) for BTC (at 1/80 000 or 0.0000125 BTC/XLM), it will be executed for the whole amount of XLM at 60 000 XLM/BTC. As a result you will buy 40 000/60 000 = 0.666667 BTC that is different from the amount of BTC entered (though it is executed at the best price available – 60 000 BTC/XLM).
Pressing on the price in the orderbook will place it as the price of an offer in the forms for creation of offers.
If your balance is zero in any asset (token) on Stellar (e.g. BTC of an anchor) you can remove a trustline that will decrease required minimum balance in XLM.
To remove a trustline go to “Accept assets” subtab and press “Remove asset” link in front of the relevant asset (see drawing below).
Token sale participants that have purchased tokens (e.g. SLT) with ETH or BTC through Bifrost would typically have a trustline for the correspondent token (ETH or BTC) of the token sale issuing account. Those trustlines are irrelevant after the operation is processed by Bisfrost so they can be removed.