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Supporting developers, startups, and full-fledged companies building on Stellar and Soroban
© 2025 Stellar Development Foundation
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By EquitX
Seamlessly diversify your portfolio by investing in small-cap stocks as crypto assets on the Stellar blockchain.
EquitX is a pioneering platform built on Stellar, specifically designed to democratize access to investments in nano-cap (less than $50M), micro-cap ($50M to $300M), and small-cap companies ($300M to $2bn). By generating synthetic assets that mirror the stock performance of these companies, EquitX offers a gateway to a segment of the market that is often out of reach due to high volatility, lower liquidity, and limited visibility. This innovative approach unlocks new investment opportunities, showcasing the untapped growth potential within these smaller enterprises.
The investment landscape for nano-cap, micro-cap, and small-cap companies is fraught with challenges, including heightened volatility, reduced liquidity, and scarce visibility compared to larger entities. These factors deter many potential investors, leaving numerous promising companies underexplored and underfunded.
Individual Blockchain-Savvy Investors: EquitX is keenly focused on attracting individual investors familiar with blockchain technology and dApps. Our platform offers these investors an innovative way to diversify their portfolios into traditional finance sectors, like nano-cap, micro-cap, and small-cap companies, without departing from the crypto ecosystem. This approach allows investors to potentially benefit from the growth of these companies while enjoying the tax advantages associated with not taking their crypto profits. These blockchain-savvy individuals, comfortable with navigating the complexities of dApps, will serve as our pioneering user base, leveraging EquitX to bridge their crypto investments with traditional financial markets.
Individual non-crypto native Investors: In anticipation of future growth, EquitX will be developing a more accessible interface aimed at non-crypto users. This interface will enable users to purchase eAssets directly with fiat currencies, tapping into the liquidity provided by DEXs. This strategic move is designed to open the doors to traditional finance for those less familiar with blockchain technology, allowing them to participate in the earnings from stability pools. By simplifying the investment process and removing the need to directly interact with blockchain's more complex aspects, EquitX aims to make investing in nano-cap, micro-cap, and small-cap companies through synthetic assets appealing and accessible to a broader audience.
For Companies: EquitX provides nano, micro, and small-cap companies with an alternative platform to increase their exposure and engage with a diverse investor base. This is particularly beneficial within the French market and, eventually, other markets as EquitX expands. By representing their stocks as eAssets on our platform, these companies can enhance their visibility and liquidity without the conventional drawbacks of fundraising, such as equity dilution.
Benefits of EquitX: Broader Exposure for Companies: Facilitates enhanced visibility and investor engagement for nano, micro, and small-cap companies, often overlooked on conventional investment platforms. Market Accessibility: Dramatically lowers the barriers for engaging with nano, micro, and small-cap investments, broadening the investor base. Security and Transparency: Employs Stellar's blockchain and Soroban smart contracts to ensure secure, transparent, and efficient transactions. Passive Income Opportunities: Introduces stability pools, allowing investors to earn passive income through participation in liquidity provision and market stabilization efforts.
EquitX will initially target the French market, leveraging our in-depth understanding of local regulatory laws and establishing direct connections with companies. This strategic entry point allows us to fine-tune our platform, ensuring it aligns with local market needs and regulatory requirements, laying a solid foundation for success. Building on our foothold in France, EquitX plans to expand into other European countries, adapting our approach to meet the diverse regulatory landscapes and market dynamics across the continent.
Here are some examples of companies for which we could synthesize shares: Lectra, a €1.84bn small cap, which is the world leader in leather cutting for the fashion, automotive and furniture industries. Kalray, a €160m microcap developing microprocessors optimized for AI. NFL Biosciences, a €22m nano-cap developing an anti-smoking addiction drug currently undergoing FDA approval. As you can see, we don't focus on any particular industry, but rather on companies with an interesting profile. Then, the idea will be to let the platform's users decide which companies they would like to have through a decentralized voting system.
EquitX leverages Soroban smart contracts to create a dynamic platform for synthetic assets, mirroring the performance of small-cap companies shares. These synthetic assets allow investors to partake in the growth potential of small-cap companies with enhanced liquidity and lower entry barriers. Collateral and Liquidation Mechanism: Investors provide collateral to mint synthetic assets, ensuring a stable foundation for each asset with a comprehensive liquidation mechanism to mitigate market volatility. Earning Interests through Stability Pools: EquitX introduces stability pools as a novel feature for investors to earn passive income, especially beneficial during market downturns or corrections. Governance and Risk Mitigation: The platform adopts a decentralized governance model, enabling stakeholders to make critical decisions regarding the platform's operations and asset offerings, ensuring that EquitX remains aligned with the needs of its community and the market. Efficiency and Accessibility via Soroban: The utilization of Soroban smart contracts streamlines the transaction process, making the platform not only more secure and transparent but also user-friendly for a diverse investor base.
Use Case: Minting eKalray on EquitX Background: Assume you're an investor interested in the semiconductor industry, particularly in Kalray, a company known for its innovative technologies. You wish to invest in Kalray through EquitX by minting a synthetic asset, eKalray, which tracks the performance of Kalray's stock. Step 1: Wallet Setup: You start by setting up a Stellar-compatible wallet (e.g. Freighter, etc), ensuring it's secure and backed up. Step 2: Acquiring Collateral: Next, you acquire a sufficient amount of the accepted collateral on EquitX, that is Stellar Lumens (XLM), to cover the minting of eKalray, keeping in mind the platform's required collateralization ratio, estimated at 150% but may vary. Step 3: Connecting to EquitX: With your wallet ready and funded, you connect it to EquitX via the platform's web interface, ensuring a secure connection. Step 4: Choosing eKalray: In the minting section, you find eKalray listed among the available eAssets. This synthetic asset represents Kalray's stock, and you decide to mint it to gain exposure to Kalray's market performance. Step 5: Collateral Deposit: You proceed to deposit your XLM as collateral. EquitX displays the minimum collateralization ratio (e.g., 150%). You input the amount of eKalray you wish to mint, and the platform calculates the required XLM amount. You confirm and deposit the XLM. Step 6: Minting eKalray: After depositing the collateral, you confirm the details and mint the desired amount of eKalray. The EquitX platform uses Soroban smart contracts to create the eKalray assets, which then appear in your wallet. Step 7: Managing Your eKalray Position: As an eKalray holder, you decide to participate in the eKalray stability pool on EquitX, contributing some of your eKalray assets. This participation helps stabilize the eKalray market and earns you rewards. Considering market dynamics, you also choose to sell some eKalray on a DEX, creating a short position on Kalray's stock. This diversifies your investment strategy and potentially increases your return on investment. Stability Pool Dynamics: When there's a liquidation event in the eKalray market, a portion of your eKalray assets in the stability pool may be burnt to cover the liquidated position. In return, you receive a premium, calculated as the difference between the full minted value of eKalray (100%) and the collateralization ratio of the liquidated party at the time of liquidation. Step 8: Closing Your Position: When you decide to close your position, you repay the eKalray you've minted, as well as any fees. Remember, you had to buy back some of the eKalray on a dex to own as many eKalray as you originally minted. Your XLM collateral is then unlocked and returned to you.
Additional Note: Buying eKalray on a DEX As eKalray is traded on a DEX, investors not interested in minting can directly purchase eKalray without needing collateral. This opens up opportunities for those looking to take a long position on Kalray's stock, further increasing the liquidity and accessibility of eKalray on the EquitX platform. This use case demonstrates how investors can engage with specific industries or companies like Kalray through synthetic assets on EquitX, leveraging blockchain technology for secure, transparent, and innovative investment opportunities. For a deeper dive into EquitX's infrastructure and the strategic application of Soroban smart contracts, please consult the detailed technical architecture document.
$45.3K
Our team consists of two core members, Mohamed and Barth, combining expertise in finance, engineering, blockchain, and product development. We’ve built blockchain tools and are working closely with Aha Labs, a leading blockchain development studio on Stellar, to bring our protocol to life.
1. Mohamed DABLADJI – CEO
Mohamed Dabladji is a finance professional with a Master's degree in Corporate Finance, focusing on the application of blockchain in Security Token Offerings (STOs). He has significant experience in investment banking, having worked at BNP Paribas' Innovation Business Center, where he contributed to the dynamic startup sector. Mohamed also holds a dual degree from CentraleSupélec and ESSEC, with a thesis centered on adding liquidity to the private equity market. His deep understanding of finance and blockchain allows him to drive innovation in the financial industry.
Connect with Mohamed: LinkedIn
2. Barth Houot – CTO
Barth Houot is a graduate of Icam engineering school and holds advanced business degrees from CentraleSupélec and ESSEC Business School. He combines strong engineering skills with strategic business knowledge, developed through his different experiences in product development and continuous improvement at Wipak and PowerOfMoss. Barth has also founded Adapptable, a company dedicated to building no-code blockchain tools to democratize blockchain development for everyone. His passion for web3 and blockchain technology along with his engineering skills make him a key driver in the development of EquitX.
Connect with Barth: LinkedIn
3. Collaboration with Aha Labs, makers of LOAM:
We are partnering with Aha Labs, a highly regarded blockchain development studio, to build and optimize EquitX. Aha Labs specializes in blockchain infrastructure, smart contracts, and decentralized applications, making them the perfect collaborator to help us achieve our vision. Their expertise in scaling secure blockchain solutions ensures that our platform will be robust, efficient, and primed for growth.
Aha Labs Website
3. Blaine Heffron - Senior Engineer at Aha Labs
Blaine is a full-stack web developer and physics Ph.D. graduate with over 12 years of programming and research experience.
Currently a Senior Engineer at Aha Labs, Blaine is proficient in C++ and Rust, which are crucial for developing robust blockchain applications on Stellar. His skills in integrating open APIs, applying machine learning models, and developing web applications are highly relevant for advancing Aha Labs' and Stellar's innovative projects in the decentralized space.
Connect with Blaine: Github/ LinkedIn
4. Pamela Selle - Senior Engineer at Aha Labs
Pamela Selle is a seasoned technologist with over a decade of experience in software engineering and leadership. Currently a Senior Engineer at Aha Labs, she brings a wealth of expertise to LOAM. Her past roles include Senior Software Engineer II at HashiCorp, where she maintained the Terraform Core project, and working on web properties and cloud infrastructure at Comcast.
Pam's extensive background in developing robust software systems and her experience with various technologies make her a key asset to LOAM's development. Her leadership skills, honed through organizing events in the JavaScript ecosystem and other developer communities, further enhance her ability to drive innovative solutions.
Mohamed Dabladji
By EquitX
By EquitX
EquitX - Phase 2