Tradestars is a Fantasy Stocks trading platform where real-world events influence their values. This project is involved in tracking real-life statistics on different events and fine-tune them to NFTs for sports stocks (fractional NFT markets). They have also enabled DeFi Gamification and by doing so, Tradestars is giving users an opportunity to invest in their passion or preferred sports. This Gamification is unique since users not only reap profits from their stock investments, but Tradestars also rewards them with economic incentives too. At the moment, the platform is live on both Ethereum and Polygon testnets.
Value Propositions and Key Features
Tradestars is the pioneer project to come up with a Decentralized Trading Platform for Fractional NFTs (ERC721). This is a big step in the DeFi scene as the economic incentives that Tradestars focuses on are influenced by real-life statistical data.
The project positions itself as a sports-focused trading game and with it, users get to chase their passions without limits. In addition, Tradestars offers borderless markets and is geared by high currency, which is advantageous to the sporting fraternity.
There is an Automated Market Making (AMM) algorithm used by Tradestars which establishes smooth assets’ price discovery. This feature is essential because it creates liquid markets for fantasy stocks and users do not have to seek a counterparty for transactions. The AMM algorithm enhances Tradestars’ decentralized characteristic because with it, open finance is seen and smart contracts come in to help with reward distribution.
The fantasy stock trading platform offers instant and gasless transactions in line with its focus on offering a seamless user experience. It is an added advantage to the users to have almost real-time transactions because this rids the system of the hold the blockchain’s currency had on transactions, ensuring their investments experience no delays.
How the Platform Works
With Tradestars, users get to access a fantasy sports stock market where they create athlete portfolios and manage them any way they see fit. This is a new feature that does not lean towards the working of sport betting platforms or Daily Fantasy Sports (DFS) where users create their specific teams and hold prearranged tournaments.
Tradestars leans on the market demand to determine the price of a player’s stocks. As such, the project is highly involved in tracking real-life statistics on different events. In a nutshell, when a big number of players buy a specific player’s stock, the price increases. On the contrary, if many users sell the player stock, the price declines. Tradestars encourages its users not to feel limited to buy or sell; therefore, they can use either the player’s expected growth or decline to buy or sell respectively. This encourages users to look into their expected dividend return before making a final decision.
When it comes to dividends, an athlete’s future performance on the pitch determines how much a user can accrue when daily or monthly disbursements are made. This payout is directly proportional to the athletes’ performance and the amount of stock the users hold. Currently, Tradestars offers a cricket stock platform but they are working on adding American Football, Esports, Basketball, Football, and other sports to their platform.
Tradestars’ Continuous Liquidity
One of the project’s main selling features is liquidity mining and staking. This feature incorporates user rewards with smart contracts. As a user progresses on the platform, they are able to gain fantasy stocks which can be sold back to the game at whatever time they are comfortable, and this continuous liquidity is managed by smart contracts.
TSX is the Tradestars token, an ERC20 token deployed on the Ethereum blockchain. When a user provides liquidity by depositing into the Fractional NFT markets, Tradestars rewards them with TSX. TSX acts as the dividend for their fantasy stock holding. How far a user is willing to go to hold their market positions coupled with real-life statistical performance are the two features necessary for the calculation of the APY. When a user focuses on creating continuous liquidity, they stake TSX which comes with added features on the platforms such as voting, unlocking new markets, and giving them a chance to get into different tier competitions.
Blockchain Technology
Tradestars is blockchain-based, giving it access to unparalleled security coupled with transparent transactions whose liquidity is automated. The project having blockchain technology is an indicator of a system that lacks intermediaries that might come in between a user and their rewards and/or disputes. This is an advantageous feature because it enhances the DeFi character of Tradestars that gives users independence without intermediaries determining the direction the users should take when trading in fantasy sports stocks.
One cannot boast of having true digital ownership of TSX if blockchain technology is not incorporated. Deploying TSX on the Ethereum blockchain ensures on-chain governance. This means that it is a community-governed platform that leans towards a pragmatic on-chain approach, and all this is enabled by the protocol and TSX token.