Tokenomik Sees the Potential of DeFi through XFai

3 min readMar 23, 2021


Tokenomik, a venture capital firm founded on over a decade of financial services at top-tier investment banks, has announced that it is partnering with XFai through a strategic investment. Given Tokenomik’s firm background in institutional investment banking and its recent venture into the DeFi space, the partnership between Tokenomik and XFai is set to further drive XFai’s mission to unlock the potential of DeFi for small and mid-cap tokens while eliminating current negative externalities within the DeFi ecosystem.

Tokenomik’s latest investment into XFai is motivated by the two major technologies that are being developed in preparation for the launch of XFai’s native token XFIT, set for April 8, 2021. The first major breakthrough in DeFi being developed by XFai is the launch mechanism, which combines the processes involved in purchasing the XFIT token and staking it into the liquidity pool. Appropriately named as a Liquidity Generation Event (LGE), the launch of XFai’s XFIT is set to chart the previously unexplored method of inviting the larger public to become the first batch of token holders. The LGE eliminates the need for the investors participating in the public sale to opt-in for sky-high gas fees even on failed transactions which occur in all other methods. Instead, XFai’s LGE combines the transactions so that the overwhelming demand of interested investors can choose to purchase the token and stake it into the liquidity pool with a single-step transaction, thus further saving on gas fees. The collected liquidity is then added to another layer of XFai’s invention — the DEX Liquidity Oracle (DLO). Through the DLO, token holders of partnered small and mid-cap tokens can earn APY, while enjoying a more leveled trading field on the DEX with added benefits such as anti-slippage and one-step liquidity provision. Moreover, partnered projects can stake their treasury funds into the DLO, and earn passive income while showing their bullish stance on their own tokens.

Tokenomik is one of the high-end venture capital firms focusing on blockchain and digital assets, created through the need to bridge the gap between traditional investment banking and cryptocurrency. Founded in 2019, Tokenomik is led by Michael Swan, who has over a decade of experience working in top-tier investment banks, originally in custodial funds platform at Macquarie, and most recently a Vice President in business selection at Goldman Sachs. Tokenomik has commented on its investment into XFai, saying

“Tokenomik agrees that there is a shortfall in liquidity for promising small cap projects and found the XFai solution compelling.

We see a strong leadership team which adds certainty to delivery of the vision, which is quite distinct from other liquidity projects.”

Michael Swan, Founder at Tokenomik

The team at XFai welcome Tokenomik as a treasured investor and a valued partner, and look forward to their continued support as we drive the next DeFi revolution.

About XFai

XFai develops tooling for the DeFi space, graphing it to build game-changing products. The XFai DLO is set to invite mid and small-cap tokens to start earning APY on their token holdings, while the XFai LGE is set to become industry-first in providing a more efficient, transparent, and fair way for everyone to get involved at an early stage. The LGE for XFai’s native token, XFIT, is set to launch on April 8, 2021. We invite everyone to join the DeFi revolution, spearheaded by XFai.

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XFai develops tooling for the DeFi space – we graph the DeFi space to build game-changing products. Starting with the DLO: the DEX Liquidity Oracle