CurioInvest Integrates Chainlink Price Benchmarks to Support New Collectible Car-Backed NFTs, Security Tokens, and Stablecoin
ENABLING MORE FUNCTIONALITY FOR CURIOINVEST USING CHAINLINK ORACLES
- CTns are Security tokens (token of the ERC-20 standard) that represent rare vehicles in the real world, such as CT1 tokens backed by a Ferrari F12tdf (one of the world’s first)
- Users can deposit CTn tokens as collateral into the Curio’s Creator Vault to obtain stable loans in the form of the Curio Stablecoin (CSC)
- The Curio Stablecoin (CSC) uses Chainlink oracle Data Feeds to access a benchmark price on each of the underlying cars backing CTn tokens, ensuring the issuance of fair market loans and full collateralization of CSC
Following our previous announcement, CurioInvest is pleased to share that it is now leveraging Chainlink Oracles live on Ethereum and eventually Polkadot to obtain valuations for CTn tokens, starting with price benchmarks for the Ferrari F12tdf and then moving to other collectible cars. By leveraging Chainlink’s oracle infrastructure, CurioDAO is placed at the heart of the DeFi ecosystem as one of the most novel and sophisticated projects, combining real-world assets like collectible vehicles with the blockchain and trusted data feeds to create both, a new form of DeFi collateral and an innovative asset-backed stablecoin. CurioInvest transformed into a platform where anyone in the world can buy security tokens backed by rare assets like supercars and use them as collateral for a loan to unlock liquidity. Additionally, a new stablecoin on the blockchain emerges called the Curio stablecoin (CSC), which is pegged to the US dollar yet uniquely backed by real-world assets.
How CurioDAO, CTn tokens, and the Curio Stablecoin CSC Work Together with Chainlink Oracles
CurioInvest uses a team of experts to research and source rare, investment-grade collectible cars. Only competitively priced cars with the potential to increase in value over time are available for purchase on the platform. All the critical information about the vehicles is also made publicly available, including the vehicle’s ownership history, the current market prices for comparable assets, and relevant media such as videos and photos.
These cars are tokenized through the CurioInvest platform. The “CurioInvest Tokens” (CTns)are digital tokens on the blockchain representing the right to share profits to one specific asset. This right can be represented by one single token or be split into many. At CurioInvest, we split it into tokens, each valued 1 USD of investment. For example, for the Ferrari F12tdf we generated and listed 1,100,000 ERC-20 tokens. These tokens can be purchased by DeFi users on the platform or in secondary markets, with holders receiving a proportional amount of 80% of the future profits when the car is sold, with 20% going to CurioInvest via platform fees after covering storage, maintenance, and insurance costs. Notably, though, CurioInvest via CurioDAO now has expanded utility for CTn tokens via the Curio Stablecoin (CSC).
CTn token holders wishing to borrow money can now deposit their CTn tokens into a Creator Vault, which simply means a blockchain address where borrowers’ collateral is locked up. It’s important to note that individual vaults do not back individual loans. Instead, all the collateral is pooled together to cover the outstanding debt. Users need to overcollateralize their loans, meaning they have to deposit more collateral than the loan issued. The loan also comes with a liquidation price, where ownership of the collateral is transferred to the vault if the user fails to pay back the loan.
The Creator Vault requires accurate and up-to-date price benchmarks regarding the price of the CTn assets held within it. This is particularly important when issuing and checking the collateralization of loans to ensure they align with the globally accepted market prices of the underlying assets. Accessing price benchmarks is where CurioInvest makes use of custom-built Chainlink-powered decentralized oracle networks, which source estimates from several high-quality data sources to determine the worth of the CTn tokens deposited in the CurioDAO.
For example, suppose someone borrows 100 Curio Stablecoins in exchange for 200 Car tokens CT1 (currently ca. $200). In that case, the protocol needs to continuously monitor the value of CT1 to verify the health factor of the loan. When the price of CT1 falls below $150, the collateral is liquidated to repay the Curio Stablecoin debt. Thus, to guarantee the system’s stability, we needed a tamper-proof and reliable oracle to provide accurate price data to ensure the system’s solvency.
The price benchmarks supplied by Chainlink shall encourage arbitrage as a means of keeping the price of CSC stable at 1 USD. Arbitrageurs earn a profit by keeping CSC pegged to 1 USD. Which incentives them to create liquidity on different sides of the market. Specifically, sell coins to the Creator Vault when the price is higher than the 1 USD target and purchase more stablecoins from the Creator Vault when the price falls below the 1 USD target.
Why CurioDAO Selected Chainlink Oracles
After reviewing different oracle solutions on the market, we identified Chainlink as the most time-tested and fully functional oracle network in the industry. Not only does Chainlink already secures billions of dollars in value for many of the leading DeFi protocols, but it’s the most flexible solution in the market, with the ability to access any data type from any API. This makes it well suited for our very specialized data needs of luxury assets, along with many notable features that are attractive to our users, including:
- High-Quality Data — Chainlink’s unique ability to handle credentials allows it to source data from premium data providers, ensuring high-quality information from highly available and financially incentivized APIs that are entirely focused on specific industries like collectible cars.
- Reliable Nodes — Chainlink Data Feeds secured by an extensive collection of independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams. Chainlink nodes have a strong performance history even during extreme gas prices and periods of high network congestion.
- Decentralized Infrastructure — Chainlink Data Feeds are decentralized at the data source and oracle node level, eliminating central points of failure in the sourcing and delivering external data to the Curio Creator Vault.
- Blockchain Agnostic — Chainlink is blockchain agnostic, making it straightforward for CurioInvest to both integrate it on Ethereum and expand to new blockchain platforms in the future like Polkadot and beyond.
The benefits of our Chainlink integration are tangible, as DeFi users now have newfound abilities to invest in any of CurioInvest’s rare car-based Security tokens (CTns), as well as trade them against reliable benchmarks. This standard will increase market liquidity, decrease slippage, and expand utility, all with the comfort of knowing that the car tokens are backed fully off-chain by real-world assets.
“By integrating Chainlink Oracles, CurioInvest can bring an entirely new market of rare assets like collectible cars on-chain to DeFi, as well as provide reliable price benchmarks so holders can make better decisions and other DeFi applications can reliably integration CSC and CTns,” states Fernando Verboonen, Co-Founder of CurioInvest. “Our integration with Chainlink marks a major step towards CurioInvest’s goal of bringing liquidity to non-bankable assets, another major leap forward for the DeFi industry as a whole,” states Fernando Verboonen, Co-Founder of CurioInvest.
OVERVIEW OF THE FERRARI F12TDF
- With a production run of just 799 units, the Ferrari F12tdf (Tour De France) is a highly exclusive car whose stunning, the timeless design pays affectionate homage to the generations of iconic Ferrari sports cars that won track races at the Tour de France.
- In addition to being a remarkable masterpiece in Ferrari’s supercar line-up, the F12tdf, a more refined version of the F12 Berlinetta, has garnered tremendous interest in the hypercar industry aerodynamic features and breathtaking performance.
- The unprecedented attention to detail in the design and engineering of the vehicle make the F12tdf a prime contender to become a modern-day classic supercar, and it has already doubled in value.
Ferrari F12TDF detailed description | Legal | Photos | Ferrari F12TDF storage at the bonded warehouse facility by Mechatronic
Curioinvest NFTs and CurioInvest NFTs Marketplace
CurioInvest plans to launch an NFT Marketplace with a launchpad for users to onboard and tokenize their own vehicles. The created NFT can be traded directly on the marketplace or even used as collateral for a loan in the Curio Stablecoin Protocol.
About Chainlink
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
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About CurioInvest
CurioInvest provides a technology platform for investments in ultra-rare cars and the creation & management of institutional-grade digital assets. Asset managers and private investors will be able to diversify in top-vetted tokenized collectibles that trade at stock markets. In the $20B collectible car market, CurioInvest offers the highest security, full automation, and a customizable yet highly scalable wealth-tech solution based on DLT. The company was founded by a former team member of kooaba after the exit to Qualcomm. Within just two years of foundation, CurioInvest has created a significant footprint in the industry considered by UBS Future of Finance and McKinsey’s venture program among the top 10 Swiss FinTechs.
If you’re an investor or collector and want to learn more about tokenized cars, visit CurioInvest to learn more about our upcoming assets and Investor relations. To schedule a call to discuss your asset more in-depth, reach out here.
To learn more about CurioInvest, visit curioinvest.com. Request access to ultra-rare cars collection here and be notified the moment new assets become available.
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