Tokenisation engine overview

$0X's approach to tokenization directly confronts regulation challenges and aims to establish a truly scalable model.

$0X represents real-world assets (RWAs) on chain in a 1-for-1 manner within a transparency layer. Users can be fully confident that the tokens they hold are directly linked to the underlying asset, instilling a much higher level of confidence and trust compared to synthetic approaches in the market. Additionally, this enables $0X to access the liquidity of the underlying market, giving us exclusive control over the arbitrage line.

Comparison with synthetics

The tokenization contract can be configured with varying degrees of centralization or decentralization, depending on the desired administrative structure. This creates a framework in which multiple parties collaborate, supported by code.

This methodology not only provides users with greater confidence in the assets they are trading but also instills higher trust in $0X as an entity and in the responsibilities it must fulfill. $0X's back office and interactions with key third parties are conducted on the blockchain, making them visible and enhancing $0X's transparency.

Through this structure and the roles it assumes, $0X can establish a more compliant system than traditional methods.

Roles and permissions

Our tokenization methodology combines non-fungible ERC-1155 and ERC-20 tokens. The ERC-1155 holds essential information about off-chain holdings and the history of audits, which any user can inspect. The ERC-20 tokens enable users to trade the asset mentioned in the ERC-1155. The platform aims to seamlessly connect custodial assets with decentralized fungible tokens.

Effective communication between the broker and the blockchain is crucial for timely updates of holdings and maintaining transparency. The token contract is responsible for minting and burning ERC-20s/ERC-1155s to match on-chain and actual holdings. It will also maintain a whitelist of KYC-approved wallets to comply with regulations.

Tokenisation process

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