Sailing Protocol aims to bring off-chain assets, starting with stocks, on-chain to enable their use in decentralized finance and smart contracts. We have solved the problem of enforcing identity-based allowlists while maintaining smart contract composability, creating a new financial layer that is faster, cheaper, and fully composable.
Our first product focuses on improving the traditional stock market system by offering near-instant settlements, 24/7 operations, and permissionless composability, significantly outperforming existing platforms like NYSE and NASDAQ. Our technology enables the identification and restriction of asset holders without limiting composability, solving a key challenge in integrating stocks with DeFi.
Sailing Protocol plans to target underrepresented markets, such as Latin America, Asia, and Africa, where financial access is limited, by offering regional self-custody broker apps. Revenue will initially come from commissions and onboarding fees, with long-term revenue generated from arbitraging on-chain and off-chain asset prices.
Users can deposit 10 million USDC on-chain, which will be routed through Sailing to NYSE for stock purchases, converting them into ERC-20 tokens.
Sailing Protocol will work with three underlying brokers to route trades, ensuring fallback options for orders if necessary. We have obtained a legal opinion from our chief legal officer and do not accept customers from the U.S. (unless they fall under an exception) or from sanctioned countries such as North Korea and Iran.
Grant breakdown
The grant will be broken down into several milestones:
Milestone
Grant Tranche
Deliverable
Timeline
Build and launch
$30,000 in USD denominated as 5-day TWAP
deploying and maintaining an erc20 stock token contract for each ticker offered.
- deploying and maintaining the Order Processing Engine.
- deploying and maintaining the network bridge, to move held stocks from any network to conflux for example.
- connecting and maintaining our Stock Mapping technology, which accounts for who is the owner of each stock at every single block, and distributes Dividends pro-rata (even when stocks are held through liquidity pools, or lending protocols, or safes for example, we know who the end-user holder is).
- deploying and maintaining our Market Making bots, which arbitrage between DEXes and wall-street prices, having the DEX price be on par with NYSE/NASDAQ price when the market is open.
4 weeks after grant approval
Initial traction
$25,000 in USD denominated as 5-day TWAP
initial stock token listings with existing ecosystem apps (besides our own app)
1 months after the grant approval
Growth
$35,000 in USD denominated as 5-day TWAP
4 more stock token listings with existing ecosystem apps
Upon completion of KYC and verification of each milestone, the grant will be dispersed to the receiver wallet address of the team.
Example Workflow
Account Setup & KYC:
User Action: The user signs up on the Sailing Protocol platform and completes the KYC (Know Your Customer) process, which ensures compliance with regulations and enables access to stock tokenization features.
Sailing Protocol: Verifies the user’s identity and allows the creation of a secure, blockchain-based wallet for holding tokenized assets.
Depositing Funds:
User Action: The user deposits funds (either fiat via wire transfer or crypto such as ETH or Conflux) into the Sailing Protocol platform to start buying tokenized stocks.
Sailing Protocol: Converts the deposited funds into stablecoins (if fiat) or uses existing crypto to trade for tokenized stocks.
Purchasing Tokenized Stocks:
User Action: The user selects tokenized stocks they want to purchase, such as tokenized Apple or Tesla shares.
Sailing Protocol: Executes the trade on-chain, instantly settling the transaction and issuing the user tokenized versions of the stocks. These tokenized assets are fully composable and can be used across DeFi applications.
Trading Off-Hours or Using Liquidity Pools:
User Action: The user trades tokenized stocks during off-hours when traditional markets are closed, taking advantage of continuous on-chain trading.
Sailing Protocol: Matches trades using liquidity from decentralized exchanges, enabling 24/7 trading with near-instant settlement.
Selling or Redeeming Tokenized Stocks:
User Action: The user decides to sell their tokenized stocks or redeem them for the underlying asset (if the protocol offers this feature).
Sailing Protocol: Instantly settles the transaction, transferring stablecoins, crypto, or fiat back to the user’s wallet.
Use Cases for Sailing Protocol
Off-Hours Price Discovery:
On-chain trading can enable 24/7 price discovery when traditional markets are closed, allowing for continuous global market activity and reacting instantly to events outside regular hours.
Arbitrage Bots for Price Parity:
Bots can keep on-chain and off-chain prices in sync by exploiting discrepancies, improving liquidity and efficiency across both markets, and ensuring reliable pricing.
Risk Mitigation for Market Events:
On-chain markets let traders react to news in real time, minimizing risks from market closures and absorbing volatility during weekends or holidays.
Global Market Efficiency:
On-chain trading bridges time zone gaps, providing continuous market access to regions underserved by traditional exchanges, improving global price discovery.
Revenue Opportunities:
Market makers can profit from providing liquidity on DEXs, while protocols generate fees from continuous trading, particularly during off-hours.
Side note
#1 - Users can earn dividends if the stock is a dividend paying asset just by holding the stock in their wallet. This is the same as any smart contract that holds a large balance of our dividend paying stocks (Like a Dex or a lending service).
Website: https://sailingprotocol.org/
Partial Team Members
Julio Agustín Barrios - https://www.linkedin.com/in/julio-agustín-barrios-b6372b174/?originalSubdomain=ar
Facundo Nahuel Dalsasso - https://www.linkedin.com/in/facundo-nahuel-dalsasso-08b407265/?originalSubdomain=ar
CEO of ailing Protocol - https://www.linkedin.com/in/nicoszerman/
You can contact me via telegram or email
Email: [email protected]
TG: @nicoszerman