[2502 Builder Activation] Sailing Protocol

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Project Name: Sailing Protocol

Founder Name: Nico Szerman

Submission Date: February 25, 2025

Project Stage: Launched / Early Growth

Sector: Decentralized Finance / Asset Tokenization

Links to Deck / Video / Images:

Description: Sailing Protocol brings traditional financial assets, starting with stocks, onto the blockchain by issuing ERC20 tokens representing real-world stocks on the Rootstock network. This enables users worldwide to access and trade stocks 24/7 with near-instant settlement, low fees, and full composability with DeFi applications. By bridging off-chain assets onto Rootstock, Sailing Protocol enhances the utility of the Bitcoin and Rootstock network, drives user adoption, and contributes to the growth of the Rootstock/Bitcoin ecosystem.

Mission: Our mission is to mount the world economy onto a new financial layer that is composable, accessible, faster, cheaper, and without downtime. We believe that in the future, most economic activity will be on-chain. By bringing off-chain assets like stocks onto Rootstock, we aim to democratize access to financial markets, especially in regions with poor financial infrastructure. Our solution on Rootstock solves the limitations of traditional stock markets by leveraging blockchain technology to provide better settlement times, 24/7 operating hours, lower fees, and smart contract composability.

Product: Our product is a protocol and platform that tokenizes stocks by issuing ERC20 tokens on the Rootstock network, representing shares of publicly traded companies. Users can purchase these stock tokens using stablecoins or other cryptocurrencies, and hold, trade, or utilize them within DeFi applications on Rootstock. Key features include:

  • Near-Instant Settlement: Transactions settle within minutes, compared to days in traditional markets.
  • 24/7 Trading: Users can trade stocks anytime, unrestricted by traditional market hours.
  • Low Fees: Transaction costs are significantly reduced compared to traditional brokerage fees.
  • Smart Contract Composability: Stock tokens can be integrated into DeFi protocols for lending, borrowing, and more.
  • Cross-Chain Purchasing: Our Universal Order Address technology allows users to purchase stocks using assets from other networks, onboarding them to Rootstock seamlessly.

Team: Our team is led by founder Nico Szerman, who has a strong background in Math, Economics, Engineering, and Blockchain. Alongside Nico, our team includes experienced developers and industry professionals passionate about bringing real-world assets onto the blockchain. Our combined expertise in blockchain development, financial markets, and regulatory compliance positions us well to tackle the complex challenges of asset tokenization and to drive the adoption of blockchain-based financial solutions.

Roadmap: In the next few months, we plan to:

  • Launch our referral and incentive programs to drive user growth and engagement.
  • Integrate with additional DeFi platforms and protocols on Rootstock to expand the utility of our stock tokens.
  • Continue refining our platform based on user feedback to enhance the user experience.
  • Enable issuing a debit card to spend directly from stocks held in on-chain safes.
  • Conduct marketing campaigns, including partnerships and community engagement, to increase adoption.
  • Collaborate with other projects and explore opportunities for mutual growth within the Rootstock ecosystem.

Conclusion: Sailing Protocol offers a groundbreaking solution that bridges traditional financial assets with the blockchain, enhancing the utility and adoption of the Rootstock network. By enabling access to stock markets through blockchain technology, we are opening doors for users globally, especially in regions underserved by traditional financial systems. Our progress to date demonstrates our commitment and capability to deliver on this vision. We kindly ask for your support to continue advancing our mission and contribute to the growth of the Bitcoin and Rootstock ecosystems.

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I believe this project will be a game changer if I can truly hold my assets in my own hands without any third-party involvement.

  1. How does Sailing Protocol ensure that the tokenized stocks are legitimately backed by real-world shares, and what mechanisms are in place to maintain trust and transparency for users?
  2. How does Sailing Protocol handle dividend distribution for tokenized stocks? Are dividends automatically distributed on-chain, or do users need to claim them manually? Additionally, how does the protocol ensure compliance with regulatory frameworks regarding dividend payments, and what measures are in place to prevent centralization in the distribution process?
  3. How does Sailing Protocol handle corporate actions such as stock splits, mergers, or other technical issues affecting the underlying stocks?
  4. Will the platform provide comprehensive financial reports for all tokenized stocks, or how will users stay informed about these changes?
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  1. How does Sailing Protocol ensure that the tokenized stocks are legitimately backed by real-world shares, and what mechanisms are in place to maintain trust and transparency for users?

We only issue stock tokens after the underlying stock is acquired; and similarly we only burn stock tokens after the underlying stock is sold. We work with an auditing firm that users can reach for a snapshot audit of the collateral stock exceeding the issued tokens.

  1. How does Sailing Protocol handle dividend distribution for tokenized stocks? Are dividends automatically distributed on-chain, or do users need to claim them manually? Additionally, how does the protocol ensure compliance with regulatory frameworks regarding dividend payments, and what measures are in place to prevent centralization in the distribution process?

Users choose in which currency and wallet address to receive dividends. This is indicated in our app; users receive a notification when there are distributions.

  1. How does Sailing Protocol handle corporate actions such as stock splits, mergers, or other technical issues affecting the underlying stocks?

When there splits or reverse-splits, we issue a new token and users can claim the new token from our app. The old token conserves the pre-split attributes (eg. under a 4-split, the old token will be worth four times the new token).

  1. Will the platform provide comprehensive financial reports for all tokenized stocks, or how will users stay informed about these changes?

We are working on this one :slight_smile: should be out soon.

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Sailing Protocol is a promising initiative that brings tokenized stocks and ETFs to Rootstock, enabling 24/7 trading, on-chain dividend distribution, and DeFi integration.

The concerns raised by @gemadinatha about transparency, dividend handling, and corporate actions are important, and it’s good to see them addressed. Ensuring public access to audits and financial reports will strengthen trust, and having insights into platform adoption—such as number of users, trading volume, and liquidity—would help assess its real-world traction.

I also appreciate @nicoszerman’s engagement, addressing questions on stock backing, dividend distribution, and corporate actions. The project’s approach—only issuing stock tokens after acquiring the real stock and working with an auditing firm for collateral verification—adds credibility. On that note, which auditing firm is conducting the collateral verification?

Seeing Sailing Protocol featured in Rootstock’s Genesis Countdown reinforces my confidence in the project’s commitment to the ecosystem. Overall, this is a well-aligned initiative for Rootstock’s DeFi expansion, and I support this Builder Activation.

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