deaFeX addresses three notable pain points in financing and investment that underpin suboptimal resource allocation in the economy: inefficient processes, unnecessary restrictions, and misaligned interests. We propose a three-pronged solution that combines e-commerce-like experience with latest developments in blockchain.
The first prong is our marketplace interfaced with distributed ledger. The tamper resistance and easy fractioning afforded by blockchain makes our support of new asset classes possible. Notably, exotic assets and product futures have few existing alternatives, and none offers similar levels of flexibility and access to fundraisers and investors. To help users navigate wide arrays of asset classes, we integrate intelligent and adaptive search and filtering commonly found in leading e-commerce platforms such as Amazon. This move further improves discovery and matching between fundraisers and investors. Last but not least, we adopt the latest blockchain protocols to improve transparency, governance, and the fulfillment of the terms of investment.
The second prong is our innovative auction method. By allowing all interested investors to determine together the final price of an asset token, this auction method ensures that all winning bidders are willing to pay at least the final auction price given all public information, and that all losing bidders are prepared to pay at most this price. It thereby secures optimal price discovery. Moreover, restriction on the number of participants to a deal is unnecessary; access, therefore, is considerably broader as a result. By concentrating all interactions within the bidding window, auction also saves time by reducing repetition in financing deal-making.
The third prong is our manipulation-resistant exchange. We recognize safety and compliance as the prerequisites for our success in promoting financing and investment with new asset classes. Consequently, all listed assets must meet our high listing standards, including audit and custody requirements depending on the specific asset classification; all investors must also pass standard KYC (Know Your Customer) checks. Additionally, we will employ state-of-the-art digital asset custody solutions. Thieves, bad bots, manipulators, and other malicious players are forbidden. Finally, we incorporate several levers to maximize liquidity.
We bring our solution to exotic assets, product futures, and traditional securities. Leading examples of exotic assets include collectibles, business assets, commercial real estate, and infrastructure; inventory and valuable goods are examples of product futures. Their difference lies in whether the asset is physically deliverable to the investor. Our conservative projection shows that within a decade this will grow into a trillion-dollar-per-year market. With a clear strategy to capture this burgeoning market as well as a simple, success-fee-based business model, we aim to grow together with this market into a leading player in financing and investment.