📉4. Secondary Market

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An essential aspect of Estate Protocol is enabling property token holders to access liquidity and trade their tokens efficiently.

4.1 Trading on DeFi Platforms

Our ERC20 real estate tokens can be traded on leading DeFi platforms, such as Uniswap V3, a decentralized, permissionless exchange powered by automated market makers (AMMs). Trading on Uniswap allows token holders to access liquidity, swap tokens for other cryptocurrencies, and capitalize on market opportunities with minimal friction. Uniswap's latest version, V3, allows users to add liquidity to a token's pool at a specific price, which would allow property token sales to take place with very low slippage by adding liquidity at the price of their choice on each property’s pool on Uniswap V3. This trading would happen in a decentralised manner and only the people that are on our KYC’d whitelist would be able to purchase the tokens.

It is important to note that token trading on DeFi platforms is subject to legal transfer restrictions based on users' jurisdictions. Our platform incorporates compliance mechanisms to ensure adherence to applicable regulations and prevent unauthorized transactions, safeguarding both token holders and the overall tokenization ecosystem. The users would then also be able to trade the property backed tokens amongst each other

4.2 OTC Trading and Token Communities

In addition to DeFi platforms, our project encourages Over-the-Counter (OTC) trading within dedicated token communities. OTC trading allows users to negotiate and execute trades directly with other token holders, providing a more personalized and flexible approach to trading.

We will establish and foster communities around our tokenized real estate assets, offering channels for communication, collaboration, and OTC trading. These communities will help increase awareness, enhance price discovery, and foster a sense of shared ownership among token holders.

As with trading on DeFi platforms, OTC trading within our token communities is subject to legal transfer restrictions based on users' jurisdictions. Our platform will provide guidance and resources to ensure that users understand and comply with relevant regulations while participating in OTC trading.

4.3 Conclusion

Estate Protocol aims to provide token holders with accessible and efficient trading options, including DeFi platforms like Uniswap and OTC trading within dedicated token communities. By facilitating liquidity and trading, we empower token holders to unlock the full potential of their tokenized real estate investments. However, we also emphasize the importance of adhering to legal transfer restrictions based on users' jurisdictions, ensuring a compliant and sustainable tokenization ecosystem.