LandX Operations

There are three LandX ecosystem participants:

• Landowners commit their farmland crop share to LandX to access capital from investors. Their commitment is secured by a lien on the underlying farmland.

• Validators are the bridge between farmers and the protocol. They’re responsible for onboarding new farmland and assisting with the process’s legal and economic contracts.

• Investors deploy capital in exchange for exposure to real farmland assets through xToken perpetual commodity vaults.

The process begins with a landowner that wishes to raise capital. LandX provides farmers with capital in exchange for a share of their future crop. These legal contracts are secured by a lien over the farmer’s land.

These contracts generate a permanent yield in return for an investment. The lien is managed by a validator who provides local legal expertise, and ensures timely crop share payments.

Validators connect landowners across the globe to the capital markets on LandX and are responsible for:

• Validating & creating a valuation for farmland

• Assisting with legal and financial contracts

• Staking LNDX tokens to provide investor protections against defaults

In return for their work, LandX validators receive a 1%¹ commission of the financing amount for bringing on farmers and to cover legal and administrative expenses.

Landowners receive xTokens equivalent to the crop-share they agree to.

The LandX platform requires farmers to keep 12 months of crop share payments on the platform in order to hedge against potential crop or cash uncertainties. Additionally, LandX requires a 12-month security deposit from every farmer.

Yield guaranteed by the landowners' contract is distributed from this pool of capital to xToken holders who can claim their commodity yield in USDC at any time.

In the event of default, the lien enables LandX to make a legal claim to the land and replace the non-paying farmer.

The lien contract and farmland collateral are represented on-chain as an NFT, which records the details of the crop share deal: area, location, crop share, title documents, and lien. This NFT is available for viewing on the platform.

To receive xTokens the farmer deposits the NFT into the smart contract and receives an equivalent amount of xTokens.

If a farmer wants to exit their crop-share obligation, they can buy back the xTokens at the current market value. Once the xTokens are returned to the smart contract the commitment becomes void.

LandX provides a more flexible financing route compared to what is currently available to landowners. At any time they can pay off their liability by buying back the xTokens or raise capital when required by selling their xTokens on a free market.

¹ - Commission percentage subject to change via DAO vote