Fermion Protocol and DIA partner to upgrade the decentralized infrastructure for the fractional tokenization of RWAs with dynamic exit pricing

Fermion Protocol, the decentralized infrastructure for the fractional tokenization and exchange of any verified physical RWA, and DIA, cross-chain oracles for Web3 announced their partnership to upgrade Web3’s core decentralized infrastructure for fractionally tokenizing physical real-world assets (RWAs) by enabling dynamic exit prices on fractional-NFTs by integrating DIA price oracles for RWAs.

The integration between Fermion and DIA will enable real-time asset pricing of a wide range of physical real-world assets, from luxury watches and fine wines to real estate and commodities.

Fractional NFT (F-NFT) designs such as ERC-404 and DN-404 enable physical RWAs to be fractionalized and sold to multiple owners; thus increasing buyer access and asset liquidity. However, suppose a buyer wishes to resell the entire asset as a single unit. In that case, a buyout mechanism must be triggered so that a single wallet can acquire all fractional shares to recombine them into a single NFT. While a buyout can typically be triggered by anyone, an exit price is usually required to be met. Exit prices are usually fixed or can be updateable by a DAO composed of fractional owners.

Current F-NFT exit price designs are limited in scope, since fixed exit prices can render the asset unsaleable if the asset value falls; and DAO updateable exit prices are costly and difficult to operate. By integrating DIA’s decentralized data oracles across a wide range of physical RWAs, Fermion will enable dynamic exit pricing, ensuring that if asset values drop- buyers can still have the option to exit and if asset values rise, buyouts cannot be triggered below fair market value. This represents an upgrade to the foundational infrastructure upon which a new decentralized economy is being built.

Fermion Protocol launches in Q3 2024 with the DIA dynamic exit price oracle integration scheduled for launch thereafter.

“We are excited to upgrade the base technology for fractionalizing RWAs by implementing dynamic exit prices in partnership with DIA. DIA is a proven leader and pioneer in decentralized oracles, and we look forward to building together the core infrastructure for a new decentralized economy.” said Justin Banon, Founder of Fermion.

“It’s great to see two promising initiatives from across the OV portfolio exploring their natural synergies and combining forces to accelerate the RWA Stack. Both individually offer foundational infrastructure for the industry; Fermion’s general-purpose infrastructure for fractionalizing RWAs as NFTs and DIA’s customizable oracles stack together can help catalyze the potential of RWAs impact” said Jamie Burke, Founder of Outlier Ventures

“We are thrilled to partner with Fermion Protocol to enhance the decentralized infrastructure for the fractional tokenization of real-world assets. By integrating DIA’s oracles, we are ensuring real-time, accurate pricing for a diverse range of physical assets. This collaboration represents a significant step towards making fractional ownership more accessible and liquid while driving the growth and adoption of real-world assets on-chain “ said Michael Weber, Co-Founder of DIA.

About Fermion Protocol
Fermion is general-purpose decentralized infrastructure for fractionally tokenizing and trading any physical real-world asset requiring verification. Fermion enables the native fractionalization of assets into ERC-20 tokens, integrating seamlessly into the decentralized finance (DeFi) ecosystem.

Fermion is founded by Justin Banon, the Founder of market leading decentralized commerce protocol – Boson Protocol.

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Fermion Protocol is the universal platform for fractionally tokenizing and trading any verified physical real-world asset

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About DIA

DIA is a cross-chain data and oracle platform, specializing in sourcing and delivering customizable data feeds on-chain and off-chain. DIA aggregates an array of over 20,000 assets covering tokens, NFTs, RWAs, LSTs, and more. DIA can source and deliver any publicly accessible data feed, eliminating the dependency on opaque and pre-aggregated data from third parties.

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