Summary:
The proposal seeks to onboard DigiFT Global’s GMMF01 token (DigiFT Global USD Money Market Fund Token) as a collateral asset in Unitus on Arbitrum.
GMMF01 token is issued by DigiFT Global, the global platform of the DigiFT group.
DigiFT Global is an affiliate of DigiFT Singapore, the regulated exchange for On-Chain real world assets.DigiFT Singapore is the first regulated exchange for on-chain real-world assets, approved as a Recognised Market Operator with a Capital Markets Services license by the Monetary Authority of Singapore. The GMMF01 token aims to provide investors with exposure to high quality short-term money market instruments and debt securities. Underlying fund unit is held in custody by MAS-licensed custodian and is bankruptcy remote from the issuer and exchange.
Reference
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Project: DigiFT Global - Bridging TradFi and DeFi with Tokenized Assets | RWA
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Address: under development, update soon
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Oracle: under development, update soon
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Communications and Community:
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LinkedIn:DigiFT | LinkedIn 4K followers
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X:(DigiFT (@DigiFTTech) / X 6.6K followers
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Community: Around 1K high-quality C-level executives, decision-makers, RWA industry players, and token investors.
Motivation
Real-world assets provide high quality, diversified,safe, secure and sustainable yield source for DeFi investors, and the yield is uncorrelated to volatile cryptocurrencies. Deploying DigiFT Global on Arbitrum and adding GMMF01 as collateral on Unitus can help diversify investment portfolios and reduce overall risk for lending protocol.
Specifications
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Issuer: DigiFT Tech (BVI) limited (Hereinafter referred to as “DigiFT Global”)
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Token Name: DigiFT Global USD Money Market Fund Token
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Token ID: GMMF01
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Currency: USDC
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Underlying Product: CSOP USD Money Market Fund SGXZ96797238
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Token design: 1 GMMF01 = 1 share of underlying
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7-day yield: 5.16% (as of June 21th)
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Token indicative price: 1.0897 USDC (as of June 21th)
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Subscription fee: 0%
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Subscription price: based on the market price of the underlying product
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Subscription details: settlement time of no more than T+2 Singapore business days (excluding non-trading days in the U.S.)
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Minimum subscription amount: 2,000 USDC, incremental units of 1,000 USDC
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Redemption fee: 0.1%
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Redemption price: based on the market price of the underlying product
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Redemption details: settlement time of no more than T+3 Singapore business days (excluding
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Minimum redemption amount: 1 GMMF01 token, incremental units of 0.0001 GMMF01 token
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Secondary liquidity: currently GMMF01 does not have secondary liquidity. Need to subscribe and redeem to get or sell GMMF01.
Investors who want to buy GMMF01 must go through KYC on DigiFT Global (digift.io), and get wallet whitelisted. At the moment, investors can only subscribe and redeem on Ethereum. DigiFT Global will provide a bridge for investors to bridge token between Ethereum and Arbitrum.
Risk Analysis
Proposed risk parameters
Collateral asset: GMMF01
Supply asset: USDC
LTV: 95%
Interest Rate Model: Optimized utilisation 90%, borrow interest rate caped at 6%. Interest rate started from 4%, linearly increase with utilisation rate. When at optimized utilisation, interest rate at 4.5%
Reserve ratio: 5%
Liquidation: Given GMMF01 is permissioned asset, liquidator needs to be KYCed or whitelisted.
Smart Contract Risk
The token is a ERC20 token with special design to have whitelist and black list function. Token contract, bridge, subscription and redemption contract have been audited by Slowmist.
Counterparty Risk
Bankruptcy remote - fund units are held by a licensed custodian
Regulated fund manager - the fund is managed by a reputable regulated fund manager in HK.
Pass-through structure - DigiFT Tech (BVI) limited is established purely as a token issuance and redemption vehicle.
Market Risk
GMMF01 is a high quality, safe and secure asset, providing investors with exposure to high quality short-term money market instruments and debt securities(short term T-bills) and the underlying asset is managed by a reputable regulated fund manager. The price of the token is relatively stable, and according to its historical performance, the token price always goes up, with currently 7-day average yield at ~ 5%.
Disclaimer
This its contents are prepared solely for informational purposes only and do not replace independent professional judgement. Under no circumstances should the information contained herein be used or considered as an offer to sell, or solicitation of an offer to buy any security. The content of this presentation is proprietary and no part of it may be reproduced or redistributed without the prior written consent of DigiFT Tech(BVI) Limited. This article contains public information as of the specified date, and may be stale thereafter. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the article and the information contained herein and no reliance should be placed on it. None of the Company, its advisers, connected persons or any other person accepts any liability whatsoever for any loss howsoever arising, directly or indirectly, from this article or its contents. All information, opinions and estimates contained herein are given as of the date hereof and are subject to change without notice. This material should not be viewed as advice or recommendations with respect to asset allocation or any particular investment.