Since $ESOY Issuance and Public Offering approval on 01/18/24, many investors and business partners worldwide asked how $ESOY could be applied in real use cases for the Agricultural Market. So, if you are one of those, this article is for you.
ARBITRAGE
$ESOY brings for Agro Commodities traders a new financial instrument for their daily operations. By using the ESOY Index as a Reference Price for Offering and Trading, Trading and Corporate Desks can take advantage from spreads between $ESOY market and other Soybean Contracts. The ESOY Index is a global composite that combines Local and International Prices to anchor $ESOY Issuance and Offering. The ESOY Index is composed 50% by CBOT Futures Prices (May) and 50% by Physical Soybean Prices where e-Grains holds positions, following the formula:
ARBITRAGE
$ESOY brings for Agro Commodities traders a new financial instrument for their daily operations. By using the ESOY Index as a Reference Price for Offering and Trading, Trading and Corporate Desks can take advantage from spreads between $ESOY market and other Soybean Contracts. The ESOY Index is a global composite that combines Local and International Prices to anchor $ESOY Issuance and Offering. The ESOY Index is composed 50% by CBOT Futures Prices (May) and 50% by Physical Soybean Prices where e-Grains holds positions, following the formula:
This composition always maintains the ESOY Index at a different price level when compared to Futures and Physical Contracts, allowing Financial and Physical Soybean Traders to do arbitrage using $ESOY.
HEDGE
Since the covid-19 pandemic, Inflation Worldwide has spiked from 1.9% (2020) to 8% (2022, Data form The World Bank). Hedge instruments were, are and will be always fundamental for Financial Institutions and Individual Investors to protect open positions.$ESOY comes as an alternative for hedging, since it is an asset 100% backed by one the World’s most important Commodities: Soybeans.By allowing investors from all over the World to invest in Soybeans, Tokenized Commodities like $ESOY democratizes hedging with commodities, the safe heaven for Capital Protection.
PRODUCTION FINANCE
Agro Commodities producers from Latin America (and the World) can collateralize $ESOY Issuance with their own production to access new liquidity rails worldwide. Due to limits and local restrictions, e-Grains’ assets come up as an alternative for Production Financing by respecting market prices and expanding access to Agro Commodities Investment. For better understanding about $ESOY Issuance, Procedures and Collateralization, e-Grains provides all official documents on our Investor Relations Page.
DeFi OPERATIONS
For Decentralized Finance investors, e-Grains Permissioned ERC-20 assets offer a new instrument for DeFi Operations. By allowing users to bring Tokenized Commodities into DeFi, e-Grains creates opportunities for higher-LTV Lending & Borrowing operations, for example. Since $ESOY is 100% backed by a Real-World Asset, it has lower volatility when compared to native cryptocurrencies, reassuring DeFi protocols to create more appealing products for DeFi investors, such as Staking, Liquidity Pools and LSDs.
SUPPLY MANAGEMENT
Tokenized Agro Commodities with Physical Settlement and Position Rollover like $ESOY are the best-in-class products for processors to forecast supply. By providing a new alternative for supply management and allowing rollover for exceeding positions, $ESOY brings safety, flexibility, and predictability for Soybean by-products producers.
BART
Companies, Producers and Processors can use Tokenized Agro Commodities as settlement currencies for production supplies, such as Agricultural Defenses, Seeds, and Fertilizers. By allowing producers to Tokenize their Production, e-Grains provides them a continuous and cheaper instrument to be used as payment for their upcoming needs. On the other side, Suppliers can accept $ESOY as a payment, without having to concern about producer risks, local requirements or supply management, since e-Grains does all the job.
PORTFOLIO DIVERSIFICATION
Tokenized Agro Commodities democratizes the access to investors from all over the World to this exclusive asset class. $ESOY is the first and will not be the last. From Stocks to Fixed Income, investors can now add Agro Commodities to their portfolio.
SAVINGS
For investors that seek for Long-Term Strategies, Tokenized Agro Commodities are an asset class that survived the Time Test, being a MUST for their Investment Portfolio.
HEDGE
Since the covid-19 pandemic, Inflation Worldwide has spiked from 1.9% (2020) to 8% (2022, Data form The World Bank). Hedge instruments were, are and will be always fundamental for Financial Institutions and Individual Investors to protect open positions.$ESOY comes as an alternative for hedging, since it is an asset 100% backed by one the World’s most important Commodities: Soybeans.By allowing investors from all over the World to invest in Soybeans, Tokenized Commodities like $ESOY democratizes hedging with commodities, the safe heaven for Capital Protection.
PRODUCTION FINANCE
Agro Commodities producers from Latin America (and the World) can collateralize $ESOY Issuance with their own production to access new liquidity rails worldwide. Due to limits and local restrictions, e-Grains’ assets come up as an alternative for Production Financing by respecting market prices and expanding access to Agro Commodities Investment. For better understanding about $ESOY Issuance, Procedures and Collateralization, e-Grains provides all official documents on our Investor Relations Page.
DeFi OPERATIONS
For Decentralized Finance investors, e-Grains Permissioned ERC-20 assets offer a new instrument for DeFi Operations. By allowing users to bring Tokenized Commodities into DeFi, e-Grains creates opportunities for higher-LTV Lending & Borrowing operations, for example. Since $ESOY is 100% backed by a Real-World Asset, it has lower volatility when compared to native cryptocurrencies, reassuring DeFi protocols to create more appealing products for DeFi investors, such as Staking, Liquidity Pools and LSDs.
SUPPLY MANAGEMENT
Tokenized Agro Commodities with Physical Settlement and Position Rollover like $ESOY are the best-in-class products for processors to forecast supply. By providing a new alternative for supply management and allowing rollover for exceeding positions, $ESOY brings safety, flexibility, and predictability for Soybean by-products producers.
BART
Companies, Producers and Processors can use Tokenized Agro Commodities as settlement currencies for production supplies, such as Agricultural Defenses, Seeds, and Fertilizers. By allowing producers to Tokenize their Production, e-Grains provides them a continuous and cheaper instrument to be used as payment for their upcoming needs. On the other side, Suppliers can accept $ESOY as a payment, without having to concern about producer risks, local requirements or supply management, since e-Grains does all the job.
PORTFOLIO DIVERSIFICATION
Tokenized Agro Commodities democratizes the access to investors from all over the World to this exclusive asset class. $ESOY is the first and will not be the last. From Stocks to Fixed Income, investors can now add Agro Commodities to their portfolio.
SAVINGS
For investors that seek for Long-Term Strategies, Tokenized Agro Commodities are an asset class that survived the Time Test, being a MUST for their Investment Portfolio.
