Dear Investors, Friends & Supporters
There are only 13 days to go until Christmas, and we’re busy finalising the details of an exclusive ‘club’ for our loyal supporters and investors. We’ve kept you waiting, we know - but we’re dotting the i’s and crossing the t’s to bring you exclusive bonuses and even a unique non-fungible token (NFT) on a ‘legal theme’ as a thank you for your support. It’ll be worth the wait, we promise!
A new staking programme to reward liquidity provider
Liti Capital is about to launch a brand new staking program for liquidity providers on its decentralized exchange Uniswap.
On decentralized exchange platforms, liquidity providers (LP) supply an equal value of tokens for a given pair (e.g. wLITI/ETH). The funds are used by an automatic market maker (AMM) algorithm to facilitate trades without an order book and the traditional market makers.
Traditionally, LPs receive financial rewards made of the trading fees to supply the fund to the liquidity pool. When the LP wants to get their underlying liquidity and any accrued fees, they must burn their LP tokens. In addition to such classic LP rewards, the program that Liti Capital is about to launch plans to include wLITI tokens as rewards earned by the LP for providing liquidity to the Uniswap pool. The rate and returns will be more attractive than the traditional staking program. More details to follow.
Have a wonderful week ahead.
Co-founder & CEO
What We've Been Reading
CRYPTO CITIES. Miami, Austin, and New York City have launched or planned to launch their own cryptocurrencies, further pushing crypto fascination. These launches further cement blockchain and crypto into the mainstream, garnering a dramatic increase in institutional interest and investment within the last year. Head over to Forbes for details on CityCoins and questions they are raising for policymakers.
SPORTY CRYPTO. Cryptocurrency companies have been engaging in deals ranging from stadium naming to partnerships with athletes and outfitters. Crypto exchange FTX announced in April it bought the naming rights to Miami Heat’s arena, in addition to UC Berkeley’s football stadium. Crypto.com bought the naming right to LA’s Staples Center. These moves have been attracting a lot of eyeballs, generating industry exposure, and establishing brand awareness. For more on how sports deals are accelerating the crypto movement, check out Axios.
CRYPTO BEHIND BARS IN INDIA? A proposed bill that would outlaw cryptocurrency use in India also aims to arrest those who break the law should it go into effect without a warrant and hold them without bail, according to a summary of the bill seen by Reuters. While the government has previously stated it seeks to encourage blockchain technology, this bill would certainly stifle its use as well as India’s non-fungible token market. Hop over to Reuters for further details.
THIS WEEK’S CRYPTO HEIST. Last weekend, hackers stole nearly $200 million from cryptocurrency exchange, BitMart. BitMart had admitted to $150 million in losses due to a security breach, but the total looks to be in the ballpark of $196 million. BitMart CEO Sheldon Xia has announced that the company will repay users whose funds were stolen with BitMart’s own money. Head to Futurism for more.
Focus Topic of the Week: What is an Equity Token?
An equity token— a form of security token— is a digital token that is backed by an asset, like an equity share in a company or an organization. Think of it like a stock that’s created and stored on a blockchain. Equity token holders have the same rights as shareholders of a company on the stock exchange, including guaranteed legal protection for investors, dividends, voting rights, and partial ownership.
Instead of an equity token’s value being based on the cryptocurrency market at large, the performance of an equity token is directly tied to the performance of the company that issued it. Not only does this bridge blockchain technology and traditional business methods, but it also allows for a safer, more stable method of investing in cryptocurrency.
Because there is no intermediary involvement regarding equity tokens, sales are conducted solely between the issuer and the investor. This reduces transaction costs, making investment through equity tokenization less expensive, more seamless, and quicker for both the issuer and the investor. It also improves liquidity, offers more transparency, and expands accessibility to a wider pool of potential investors.
At Liti Capital, equity tokenization allows us to merge blockchain technology with the traditional private equity market of litigation finance. LITI, our first-of-its-kind equity token, equates to one share in Liti Capital. It is one of only four Swiss-approved ETOs. wLITI, our Ethereum-backed ERC20 token, is fixed to the value of LITI— meaning that its value is dependent on the performance of our LITI tokens, as LITI is dependent on the performance of our company. Investors of all backgrounds can access wLITI, removing the litigation finance industry's historically high financial barriers to entry so that anyone can participate in this attractive alternative asset class.
Governance is a decision-making system that all parties agree to adhere to in an organization, institution, or service. Its main goal is to consider the best interest of the members of whatever entity is at hand, while also maximizing available resources to promote its longevity.
In off-chain governance on blockchain, decisions are made by a community leader or a select group of community leaders. This governance style can be further broken down into three camps: benevolent-dictator-for-life, core development team, and open governance.
In the benevolent dictator-for-life model, the creator or head developer of a crypto project gets the final say on blockchain decisions. Whereas in core development team governance— you guessed it— core developers spearhead blockchain growth and adaptions. In open governance, users vote for a team— usually made up of investors, core developers, and blockchain creators— to decide on all blockchain-based decisions.
Because off-chain governance often relies on a group of voices with differing interests and perspectives, decision-making can be a slow process.
Before You Go...
Don’t forget to take a whack at our Liti Capital Crossword!
The theme this week is “Big Names in Crypto''— we’re covering everything from coins and tokens to exchanges, developers, and our very own Liti Capital team and offerings. Try your luck for a chance at $200 worth of wLITI! Answers must be submitted for consideration.