Market Opportunity

There are currently two target markets that would act as ideal customers for LandX:

• DAO Treasuries looking to diversify crypto exposure to protect against market cycle downturns

• Crypto-native investment funds looking for yield and inflation hedges

DAO Treasuries

DAO treasuries have amassed huge amounts of capital with over $10B USD now being managed by decentralized autonomous organizations. The top ten largest treasuries.

Name	Total Treasury	Liquid Assets
Uniswap	$3,000,312,905	$1,887,210,497
BitDAO	$1,164,732,004	$1,164,732,004
Lido	$320,971,677	$320,971,677
OlympusDAO	$258,479,366	$258,479,366
GnosisDAO	$1,170,582,559	$234,105,336
MakerDAO	$155,431,818	$155,431,818
Aave	$154,021,768	$154,021,768
ENS	$731,418,552	$137,627,283
Radicle	$113,749,844	$113,749,844
Aragon	$98,990,983	$98,990,983

Data from https://openorgs.info

LandX is looking for partners who wish to diversify their portfolios and DAO’s are a perfect customer, they have a strong balance sheet that is overexposed to crypto assets.

Crypto Native Investment Funds

There are many different types of investment funds in the crypto industry that have grown out of the sector's success. Many now manage billion-dollar portfolios of digital assets such as Alameda Research, Multicoin Capital, Paradigm & Wintermute. These funds often run a combination of strategies including:

• Market Making

• Venture Capital

• Arbitrage Trading

• Basis Trading

• Directional Momentum

Funds are rarely delta-neutral entirely because of their exposure to low liquidity tokens. Their directional bias could be hedged or de-risked with an uncorrelated digital asset. Let’s look at an example investment scenario.

A purchase of $1,000,000 USD into the protocol’s xBASKET index fund will give exposure to all four xTokens and return a yield expected to be in the region of 7% APR. Each xBASKET token returns the USDC value of 0.25 KGs of each commodity annually.

There is also expected appreciation of the commodity yield as the underlying commodities price increases. High inflation expectations suggest that commodities should increase in price relative to the USD over a long enough time period. This scenario creates a leveraged upside while at the same time providing a hedged downside for the investor.

If a basket of wheat, soy, corn and rice appreciates by 15% over the next year, and the investor sells their $1M position, they’ll profit approximately $230,500 (23.05%). If the basket drops in price by 15% over the next year, they’ll only realize a $95K loss (-9.5%). Over longer term periods inflation further reduces the risk of short-term downside.

This is an asymmetric opportunity in an asset class only now opening up to treasury and fund managers. If the commodities go up, you get the increase in underlying and the yield. If the price goes down, some of your losses in the value of xTokens are offset by the daily yield received in USDC.