How to create tokenized real-world assets on DeFiChain

Decentralized assets are one of the most innovative and revolutionary products of DeFiChain. With dAssets, it is possible to mimic almost any real-world asset and make it tradable in a decentralized way. The dAssets are intrinsically censorship-resistant, meaning no one can take them away from you or deny you access to them. This allows people without access to the financial world to get price exposure, while those who already have access can break free from their brokers' limitations.

Decentralized assets are nothing else than utility tokens and can be minted by anyone on the DeFiChain blockchain. In conventional stocks, shareholders are part-owners in a company. You have certain rights such as the ability to vote on key proposals, receive dividends, and more. 

But decentralized assets are not “securities” issued by a company. They are tokens on the blockchain that give you price exposure, not ownership of the actual asset, without leaving the DeFi ecosystem.

Rather than tracking and reflecting the actual stock price, the dAssets track and reflect a number of variable factors to closely follow the stock price, and use oracles to capture those feeds. 

A dAsset can either be:

  • held as an investment 
  • traded on the DeFiChain DEX
  • used for Liquidity Mining on the DeFiChain DEX 

The dAssets can be traded 24/7 and there is no need to buy an entire stock. If it is too expensive, users can buy a fractional piece of it. The dAssets ‌also come with certain tax benefits (depending on your local tax rules) since they are seen as utility tokens, not securities.

Role of loans in minting dAssets

Before you trade those assets, you must create them first. To better understand this process, we have to first look at decentralized loans (dLoans), a feature that allows the user to borrow cryptocurrencies without a central provider. 

To mint dAssets, you have to deposit dBTC, DFI, DUSD, dUSDT or dUSDC as collateral in the DeFiChain Vault. Nothing different than using your real estate as collateral for a loan at your local bank. At the same time, dLoans are the technical foundation of DeFiChain’s decentralized assets! All the dAssets get created through dLoans and are therefore backed by cryptocurrencies.  

Minting is not the only way to own dAssets, though. Users can also buy them on the DeFiChain DEX and then put them towards liquidity mining for additional passive income. All dTokens are freely denumerable and can be transferred to other people worldwide without involving an intermediary.

You’ve learned everything about dAssets and the minting process on DeFiChain. You’re ready to explore DeFiChain! In case you have further questions, our great community (Twitter | Telegram) is here to help.