The first protocol built on Boson’s physical RWA tokenization base layer
Our next phase of development is building an ecosystem on top of Boson (read more here). As Web3 adoption returns, this positions Boson as the decentralized base layer for the tokenization and exchange of all physical real-world assets
This post details how Fermion – the first protocol to be built on Boson’s physical RWA tokenization layer – is expanding the Boson ecosystem.
Fermion is built on Boson, earns fees for Boson and expands Boson’s ecosystem
Fermion protocol is a verification layer built on top of Boson. Its target assets are high-value RWAs, which require additional verification to ensure authenticity and are optionally kept in custody until the owner decides to collect them. (EG – if you want to buy a Rolex, a gold bar or a luxury car, you want to be sure it’s the real thing and that it will be kept safe until you collect it.) When the asset is in custody, its ownership can be fractionalized amongst multiple owners who can freely trade their shares. All Fermion assets are first tokenized on the Boson base layer, earning fees for Boson and scaling Boson’s ecosystem.
Boson and Fermion are separate networks with separate tokens, governed by distinct but overlapping communities. Working together, the protocols enable the decentralized tokenization and exchange of the full spectrum of physical RWAs, with Boson optimizing for efficiency for commerce assets and Fermion enabling additional verification for high-value assets.
Let’s dig into why we need Fermion, and how it expands the Boson ecosystem…
The race is on to tokenize all assets onchain.
A growing consensus is emerging that all assets will be tokenized:
“The next generation for markets, the next generation for securities, will be tokenization…” Larry Fink, CEO Blackrock
The battle for control of the tokenization infrastructure is the battle for control of everything
If all assets are to be tokenized, the question is: on what type of infrastructure will they be tokenized? The choice is between decentralized and centralized infrastructure. Decentralized infrastructure enables Satoshi’s vision of an alternate financial system, where we all get to own and control the infrastructure and share in the value we create. Centralized infrastructure, where traditional financial institutions build centralized systems on blockchains, ensures that ownership and control extend to more areas of the economy, with greater opportunities for extraction from us all.
At Boson, we believe that humanity’s wealth should be stored securely on capture-resistant, decentralized infrastructure, or at the very least that we have this option.
Our Mission
Our Founder, Justin Banon – together with leading blockchain economist Prof Jason Potts, recently wrote an academic paper which sets out a vision for a new computable economy with the potential to unlock exponential wealth. This vision is enabled by bringing onchain all forms or real world assets with the same deterministic properties as onchain assets.
“Our mission is to enable a new computable economy and unlock exponential wealth, by building the general purpose decentralized infrastructure for physical RWAs.”
Assets that can be, are being transferred onchain
Natively onchain assets such as cryptocurrencies and NFTs are already onchain. Most other assets can and are being transferred onchain including debt, equity, bonds and fiat. For example, fiat is in the process of being transferred onchain both via stable coins and central bank digital currencies (CBDCs).
Physical RWAs will always have a physical residue which must be exchanged offchain
Physical RWAs have a physical residue which cannot be represented onchain. Such assets can be tokenized, but the physical residue must be exchanged offchain.
Some physical assets require verification during exchange
Physical assets can be classified according to the method used to exchange them. Low to medium value assets can be exchanged using an efficient commerce exchange method. Here, the seller sends the asset directly to the buyer, with any disputes handled after the fact. E-commerce is an example of this method.
However, high value assets require a more robust verification method as typically used in the securities industry. Here, the seller sends the asset to a verifier, who verifies the quality and quantity of the asset. Once verified, the asset is securely held by a custodian, who will then atomically send the asset to the buyer and the payment to the seller.
Physical RWAs can be divided into two categories
Physical RWAs can be divided into two categories based on the method required to exchange them: commerce physical RWAs for low to medium value commerce and verified physical RWAs for high value commerce such as high-value art, luxury watches and fine wine; also real estate and commodities.
We have already built the decentralized infrastructure for tokenizing and exchanging Commerce Physical RWAs
Boson is now product-complete with a fully developed protocol and dApp suite and is ready for mass adoption as the next bull market emerges. However, Boson was designed in an extensible way and can also be used as the base layer for tokenizing and trading all types of physical RWAs.
Problem: There is no general purpose decentralized infrastructure for Verified Physical RWAs
Currently, there is no general-purpose decentralized infrastructure for verified physical RWAs. We have a growing number of Onchain CeFi platforms, but they are just extractionary platforms built on blockchain technology. Current decentralized protocols for RWA tokenization have naive designs, and many physical RWA founders are building their own protocols. This simply doesn’t make sense.
Solution: Fermion Protocol – Decentralized infrastructure network for all verified physical RWAs
Enter Fermion Protocol: Decentralized infrastructure network for all verified physical RWAs; and the first protocol built on Boson’s Physical RWA tokenization base layer. Fermion is the general purpose decentralized infrastructure network for the fractional tokenization and verified exchange of all physical real world assets.
Fermion solution overview
- Verification – Fermion leverages trusted verifiers and custodians to enable higher verification, long tokenization duration and high capital efficiency for high value assets.
- Fractionalization – Fermion enables native NFT fractionalization via extended ERC/DN-404 which provides interoperability with DeFi along with enhanced liquidity and improved price discovery.
- Incentivization – Fermion leverages a powerful incentive mechanism to onboard supply of assets and actors and drive demand.
Fermion extends Boson’s market size potential by multiple trillions of dollars
By extending Boson’s existing commerce market to high value commerce, real estate and eventually commodities; Fermion extends Boson’s market size potential to a hundred of trillion dollars.
Conclusion
We are installing Boson as the base layer for the decentralized physical RWA Ecosystem, and developing products across a range of scaled distribution channels so that when Web3 returns, and with its mass adoption, we are primed to scale exponentially to become ‘the infrastructure upon which all physical RWAs are tokenized and traded’.
The first protocol to be built on Boson is Fermion: the decentralized infrastructure network for all verified physical RWAs. Fermion is built on Boson, earns fees for Boson and expands Boson’s ecosystem. So we are calling all Bosonauts to get behind Fermion!
Keep up to date with the latest alpha from Fermion and register for the upcoming Fermion sale: