After DFS's Back to Home 1: Pragmatic, our main focus is on thinking about how to get back to the book.
Recently, with the outflow of BM, a large outflow of active funds within the EOS ecosystem is visible to the naked eye. It's longer for us to get back to this.
The road back to ben is long, not only empty talk and fantasy, so, on the one hand, we think positively, on the other hand, hard work.
The basic idea of how to return to this book is to think about how to bring the value of the chain back to the EOS big ecology and bring it into the DFS small ecology. Or direct outwards to expand the cross-section of the user base. Increase the network precipitation value, so as to get rid of the stock of funds in the inner volume of the chrysanthemum.
So we have two big directions, and we work in both directions at the same time.
Direction 1: Link value
Direction 2: Create value
Direction one, focus on linking valuable things, such as how to introduce high-quality cross-chain assets, or how to extend existing good things to a wider range of people.
Direction two, focus on creating valuable things, such as innovative new projects with commercial value.
We created a lab, a practical lab.
Labs, focusing on exploring innovation, focusing on turning imaginary things into reality.
Pragmatic Lab Project 1: DCAP: A point-to-point de-centralization cross-chain asset protocol
We're about to launch a new experimental project: the de-centricization of cross-chain asset protocols: The Centered Crosschain Asset Protocol
Its implementation principle, in theory, can use the way of centering, the introduction of cross-chain assets.
For the fundamentals of the EOS public chain, bring a qualitative leap.
Make the EOS public chain a lightning network of all public chains and even all assets.
The EOS public chain will thus become a very efficient settlement layer.
And one of the top-up and withdrawal link, is the point-to-point centering mode.
Under the DCAP protocol, cross-chain tokens issued can be collectively referred to asdtoken。
If the SWAP agreement is understood as a de-centralization of fees on a central exchange, it is shared with market-makers.
DCAP can be understood as de-centralizing the currency charges of the central exchange and sharing them with the acceptors and witnesses.
The traditional cross-chain asset acceptance gateway, the mainstream model isIOU modeacceptance. The disadvantage is the risk of a centralized single point of failure.
The IOU model, which is currently used by all centralized exchanges, including USDT, is characterized by centralized acceptance and also centralized risk. Its advantages are also its disadvantages. Trust centers bring convenience, but they also bring the single point of failure inherent in a centric system.
The DCAP protocol, on the other hand, is based onSwap market-making asset lock-in modeCombineIOU mode, to issue cross-chain assets, is a kind of centered issuance and acceptance. There is no single point of failure and no single point of trust is required. More, is the trust in the mechanism and the scale of application brought about by the consensus.
Users in the swap market, you can obtain the agreement fee income and agreement mining income and many other benefits.
How can this part of the asset be further utilized?
We propose that the user, actively call the smart contract, to lock this part of the market capital, so as to obtain in the DCAP protocol, the issuance of dtoken distribution quota.
User A, in dfs swap, marketed assets equivalent to 100,000 EOS. Users intend to market for a long time, so call the DCAP protocol, lock this part of the market capital, and obtain a certain proportion of the issuance quota. As for how much you get, it depends on oneUtilization parameters, initially set to: 50% utilization rate. Later, a better utilization assessment approach was introduced in conjunction with community governance elections and reputational assessments.
User A, by locking the market of 100,000 EOS, you can get the equivalent of 50,000 EOS cross-chain asset issuance quota.
Locked 100,000 EOS, can still get real-time fee income, mining income.
If you do not use any issuance quota, you can call smart contracts at any time, unlock funds, withdraw from the market.
If an issue limit is used, such as 1 DBTC, it cannot be withdrawn from the market until the DBTC is repaid. However, additional market capital can be added to further increase the quota.
The system role
The gateway owner
Recharge the user
Gateway thresholds and responsibilities
Gateway, is a market-making user, by locking the market-making funds, apply for the establishment of a issuance and acceptance level.
By receiving the real cross-chain assets of the top-up user (e.g. BTC, ETH, theoretically supporting any currency), dtoken is issued on the EOS public chain.
By receiving the dtoken of the withdrawal user, the real cross-chain assets (e.g. BTC, ETH) are sent to the withdrawal user while destroying the dtoken on the EOS chain.
Gateway's responsibility is to issue and accept dtoken, through long-term issuance, acceptance, acceptance efficiency and other data, to build a trustworthy gateway.
And such a gateway, any market-making users can apply for the establishment. Therefore, it is centered, with multiple gateways coexisting.
Recharge users and withdrawal users, will choose a good acceptance data gateway, as their commonly used gateway.
Between multiple gateways, a service quality-based survival mechanism is finally formed.
Gateway threshold: tentatively set at 5000 EOS equivalent market capital. A gateway with a 50% utilization rate can be requested. Later combined with community governance and reputation evaluation system, and gradually build a sound gateway competition mechanism.
The threshold and responsibilities of the acceptor
The acceptor is the specific working role within the gateway, and the primary responsibility is to help the gateway where it is located to receive and send assets, issue and destroy dtokens. The image is said to be the person who deals with the charging and the withdrawal of coins.
A issuing gateway, which can have several acceptors, acceptor's account number, needs to be specified by the gateway owner.
The acceptance and issuance of dtoken quotas by the acceptor is to be granted by the gateway owner.
After the acceptor receives the real assets, the dtoken issue is increased from the dtoken issuance limit of the gateway to which they belong.
When the acceptor receives the dtoken, the destroyed dtoken is deducted from the dtoken issuance limit of the gateway to which it belongs.
The total value of all dtokens issued by the gateway does not exceed the total value of the currently locked market capital.
Only when the gateway's dtoken issuance limit is reduced to 0, the gateway's owner can disband the gateway, unlock the funds, and get back the market capital.
Gateway owner and gateway acceptor, is the credit relationship, gateway owner, by locking the market assets to guarantee, may be large funds but less time of the gold owner.
Gateway accepters, on the other, are more like bricklayers who have time to complete the acceptance work by earning acceptance fees, or by completing the spread between the dex and the central exchange.
A gateway with at least one owner and one acceptor. The two can be the same person.
Gateway owner, by locking the market capital, with the excess mortgage of the market capital as a guarantee.
Gateway acceptor, specific work, processing recharge and withdrawal of specific operations.
Acceptance line credit
A gateway owner may have locked in a large amount of market capital, resulting in a large issuance line. But I don't have time to do the issuance and acceptance of these things.
As a result, gateway owneres can credit their quota to an acceptor they trust.
For example, a gateway has a quota of 1000 ETH, which can be granted to 5 acceptors, each issuing acceptance limit of 200 ETH.
These five acceptors can operate independently of each other and provide acceptance and issuance services for the same gateway.
Gateway owner, need to carefully choose their trusted acceptor, to avoid the acceptor received real assets, self-retention of this part of the assets, and then give up acceptance responsibility, the credibility of the gateway statistics, as a bad impact. The accepter can choose trusted relatives, employees, etc., with appropriate constraints to avoid disputes over the ownership of the accepted cross-chain assets.
a code of good faith for gateways and accepters
The DCAP protocol is a de-centralized cross-chain asset acceptance agreement for half synthetic assets and half IOU mode.
one of themMarket capital lock-in, equivalent to an excess collateral guarantee, on the other hand, there is no mandatory requirement for the address balance of the accepted real assets, so there may be misappropriation or insufficient amount. (In fact, unless there is a 100 per cent cash-out run, the address of the withdrawal reserve does not need to be 100 per cent full.) ）
However, in order to avoid accepting addresses with only one real ETH, but repeated misappropriation, issued dozens of DETH this case, we require gateways or acceptors, need to submit the real assets of the storage address, public acceptance reserves. (e.g. hot, cold wallet address, top-up address, withdrawal address, etc.)
Dishonest gateways and accepters can be suspended by community voting to suspend issuance and acceptance services.
Therefore, the operator's operation, need to consider from the long-term reputation, to avoid making operations that undermine the credibility of the gateway.
The threshold and title of the witness
A witness is a notary mechanism between the user and the gateway acceptor.
Similar to block miners, used to enhance the centering characteristics of the protocol.
First, we simulate a top-up and withdrawal of an ETH.
Recharge the user, select a gateway, and pick an online acceptor under the gateway
Recharge user, select the top-up asset as ETH and send ETH to the top-up address provided by the acceptor.
Recharge the user, in the order, fill in the trx id that sent the ETH (verifiable chain transactions)
Acceptor, check to verify the top-up record, after confirming receipt of ETH. Make a request to issue a DETH, and then fill in the trx id for issuing DETH.
Both parties click to confirm that the transaction is complete.
At least 3 witnesses, successfully checking in and out of two trx ids, the system can complete an order.
Witnesses and accepters receive TAG acceptance awards from the system.
The more witnesses to an acceptance order, the better. Witnesses in the front row can receive some TAG rewards. And help the order, into the "complete" state.
In version V1, in order to simplify the process, we do not open the witness process. A 1-to-1 service relationship is maintained only between the gateway acceptor and the charger user. However, in this case, there may be suspicion of brushing data, so we previously limited the number of daily acceptance rewards, without affecting the normal operation of the system, and then choose the opportunity to introduce a witness mechanism.
Why it's worth using the DCAP protocol and dtoken
The existence of tokens in exchanges comes at the expense of losing liquidity value. More and more coin holders are choosing to cash in their wallets and participate in liquidity mining.
DeFi is setting off a wave of unleashing the liquidity value of assets.
The DCAP agreement will further unlock the liquidity value of assets and raise the interest rate on funds.
Also give EOS public chain DeFi network, enter more value.
Depth shared by spread arbitrage-based and centrized exchanges
Suppose that DETH is a dtoken issued by the user via gateway top-up.
So 1 DETH, behind the existence of the gateway acceptor's hands of the real ETH as accepta
nce, and at least 2 times the locked market capital as a guarantee.
Buying and selling DETH in swap is equivalent to buying and selling ETH, because DETH can be cashed directly to the exchange account through the provider's services to complete spread arbitrage.
In DFS swap, 1 DETH is 1300 U, while fire exchange 1 ETH is 1400 U, with a spread of 100 U.
Then the user can buy 1300U to buy 1 DETH, and through the gateway acceptor's service, directly cash out of ETH to fire currency ETH top-up address, sold into 1400U, complete spread arbitrage.
It is precisely because of the existence of a real spread arbitrage mechanism. Effective price transfers can therefore be formed between the dtoken and the real asset.
Buying and selling DETH is equivalent to buying and selling ETH.
This is equivalent to an asset ownership, all the way to the user's hands of the centered exchange.
And the DCAP agreement, it is this de-centric exchange de-centralization recharge, withdrawal of imports and exits.
The DCAP protocol, in theory, can support cross-chain charge in any major currency.
Agreement-related governance, using DFS voting decisions.
Community governance, which can be used to protect the proper functioning of an agreement, is the final arbitrator.
Avoid the evil of the agreement layer, such as witness evil, acceptance of evil.
When based on the required top-up and withdrawal transactions provided by both parties, the authenticity of the evil is sepired. The community may initiate arbitration and award TAG pledge guarantees to witnesses or accepters.
Therefore, witnesses and accepters of the cost of doing evil, on the one hand, is based on the cost of pledge, on the other hand, is based on the credibility of the gateway, and their own role in the system credibility.
In addition to arbitration rights, agreement governance may also involve some important decisions such as voting, parameter voting, etc. For example, which trading pairs are allowed to make market funds, with the amount of dtoken issued.
The agreed rate
This project, an infrastructure project for the EOS public chain, is not profitable. No additional coins will be issued.
In the early stage, TAG was used as the system incentive.
Later, the withdrawal user is required to pay the equivalent withdrawal fee to the witness and the acceptor in order to complete the withdrawal service.
No additional tokens will be issued for this item.
Awards from accepters and witnesses, all from TAG vault subsidies during the pre-promotion run.
And the decentricization of the cost of the single income, with the development of the agreement, the latter will be a considerable income.
And witnesses, like the miners in the agreement, as a risk-free profit-making role in the agreement, will raise the application threshold. TAGs need to be pledged and a limited number of witnesses elected according to the deposit ranking.
TAG is the pledge token and service fee payment token in this de-centralized cross-chain asset agreement.
Pragmatic Lab Project 2: Go to The Center Lending Agreement: The Road to Asset Freedom
P2P Internet Finance is dead; Ant Financial is dead.
The core financial lending agreement based on blockchain smart contract technology is in place.
The mission of a centered lending agreement
The level of interest rate is a financial instrument that determines the market price according to its innitive value.
Since financial instruments are a "commodity", their prices should be determined by market supply and demand, rather than simply regulated by central intervention.
In the absence of full marketization of interest rates, the level of interest rates does not naturally reflect the supply and demand relationship of the market, resulting in price distortions, middlemen and arbitrage earn a large amount of spreads.
An ideal uncentricized lending agreement should achieve real interest rate marketization, achieving the goal of "borrowers paying fair interest to depositors in the current market", so that both borrowers and borrowers can borrow and save happily.
The mission of the centered lending agreement is to realize the marketization of interest rates in the field of borrowing demand.
Based on blockchain technology, open the door to low-threshold universal finance, serve people all over the world, so that there is no hard money to borrow.
The agreed rate
Setting a centered rate market, the value of the base rate, can be produced by the depositor collective weighted average.
The borrowing rate is based on the base rate and uses the dynamic interest rate algorithm.
Depositors take in real-time interest with deposits.
Borrowers are charged a 0.02% handling fee when borrowing. (Pre-deposited YFC is exempt from handling fees.) Pre-deposited YFC deducts interest earned during the borrowing period. ）
The agreement charges 0.3% interest as an agreement fee. The agreement fee will be used for the development of the project. 5% of the agreement fee is used for repurchase and destruction of YFC.
The interest generated by the loan, after deducting 0.3%, is accumulated into the loan pool as the deposit proceeds of the depositor.
Deposit currency, if there are other income (such as DSS income), then DSS income will automatically accumulate into the lending pool as the depositor's deposit income.
Innovations in DFS lending agreements
The DFS Lending Agreement is oneMulti-fund pool modellending agreements. Interest rates are adjusted according to the dynamics of market supply and demand.
On this basis, the DFS lending agreement also adds many innovative features.
Fixed interest rate for a limited period of time
The borrowing rate is the fixed rate. Within 7 days, this loan is not affected by dynamic interest rates. However, after the specified period, the interest rate automatically changes to the dynamic interest rate of the current market.
User A, for example, borrowed a USDT at a 15% interest rate. Within seven days, the interest rate on the loan was 15%, and the market was in short supply, and since then it has been heavily lent, with interest rates rising to 30%.
User A's borrowing is interest-bearing at 15% over the term. If the maturity is exceeded, the latest 30% interest rate is used (the time is calculated over the entire borrowing cycle, so the interest rate is doubled and the interest is double).
It is therefore important to note that in the event of interest rate changes, repayment should be made on time to avoid unexpected interest due to changes in market interest rates.
Fixed interest rate term time, one of the protocol governance parameters. We will change according to currency and market. Make the right adjustments.
Compete for public pools with individual private pools
We set a base rate weighting that depositors can participate in.
This means that the base rate of the public pool is likely to be monopolized by large funds.
As a result, retail investors want to lend at low interest rates, but are tied to the high interest rates of large funds, and are being pulled up by the average interest rate lending.
Interest rate is "commodity", commodities can certainly be purchased from three, is a healthy competitive market.
Therefore, our agreement allows users the freedom to create lending pools.
When you are not satisfied with the high interest rates in public pools, you cannot use your own capital weighting to pull down the benchmark interest rate.
At this point, you can build your own lending pool, open another store, through the branch, the interest rate down.
A new lending pool that is allowed to be set to public or private.
A public lending pool is the pool where you are not satisfied with the interest rate, and in the new pool, your lending rate is in your hands, but because it is a public pool, others can get involved and lower or raise the original interest rate you offer.
A private lending pool is a private lending pool that you have built that is exclusive to you, with the advantage that the borrowing rate is set by you and you want to be free, and other people’s money can’t join to affect you, the equivalent of your own private bank.
Interest-free lightning loans in blocks
Lightning Loans are now one of the standardized features of our lending agreements, and our lending agreements will also support Lightning Loans. A loan is repaid within the block, without interest.
Combined with big data behavior analysis on the chain, as well as locked assets within other contracts, the DFS reputation value system will be introduced later. (Similar to Alipay Sesame Rating)
An integrated credit value system that opens up unsecured lending lines to a small number of users who meet the conditions for unsecured lending.
This item does not issue additional tokens, but uses YFC as its functional token.
Users can save a certain amount of YFC, you can be exempted from the borrowing fees.
Pre-deposited YFCs are not withdrawalable, but can be used to offset interest earned during the loan period.
5% of the agreement fee for repurchase and destruction of YFC.
Agreement-related governance, using DFS voting decisions.
More details about DFS's lending agreements will be covered in a follow-up article.
Practical Lab Project 3: Hive Hive: A multi-center, low-coupled, cohesive DAO organizational structure
Many people mentioned the suggestion that an inviter mechanism such as puller rebates should be implanted in DFS projects. In order to give community members the motivation to spontaneously promote development, so that projects, with long-term incentives and self-growth momentum.
Pull people, rebates, and hierarchical benefit transfer structures in traditional cx organizations, most of which are swindles for s pioneers to come out first and come in later.
But if the top point pursues decentralization, is willing to put all the real profits and commercial value of the organization, through such an organizational level, delicate layer down, then this organizational structure, no longer in the air, but will become a living organization.
Its members also update iterations, just as human cells are replaced by old and new.
Such a DAO structure, using technology, gives systems and organisms similar vitality.
DFS DAO named Hive Hive, which pursues this viable DAO tissue form. Its ultimate goal is to share the benefits of the protocol network, all the benefits through technology, with all the co-architects, to create a new organizational structure with self-blood-building, self-reproduction and self-replacement capabilities.
More details about DFS's DAO system will be covered in a follow-up article.
Cross-chain planning for DFS
The core task of DFS is to explore and build the floor application of blockchain technology and accelerate the advent of blockchain technology.
We use the chain itself as a laboratory for practicing ideas, not attached to any public chain. Any smart contract platform with a high-performance, centered nature is likely to be our next stop.
Like a person, born in his hometown, longer than his hometown, but grow up, will inevitably aspire to travel the world in the distance.
DFS was born in the EOS chain and is longer than the EOS chain. But in the distance, and so on after the development of molding, nature can also sail long voyage.
We build brands, not specific vassal products. The public chain, like a computer's operating system, updates iterations, is eliminated, and is replaced. DFS, on the other hand, is like a portable brand or utility built on a particular operating system.
On the one hand, we are doing practical laboratory planning projects, on the other hand, actively do technical reserves. In the right time, take the DFS brand and community users out of the closed fish pond and into the wider sea.
Such a "community cross-chain", the essence is to lead the community to take the initiative to go out and expand the territory, rather than say give up the old position. There is an image of the metaphor: DFS as Wanda malls and other architectural brands, the public chain as a developing city, DFS needs cities, cities also need some brands.
It is on the basis of such interdependent needs that we have plans in the major public chains,Established a "multi-chain co-existence large-scale DeFi aggregation application" with the DFS community as the core user base and the DFS brand as the traffic portal.。
Point in time: the current pattern of the public chain is not yet clear, although the three public chains are in full swing, as fear of being abandoned by the times, the development of their own ecology.
But time is the only criterion for testing the public chain.
The use of the DCAP protocol to issue dtoken is an attempt to "step in", while the entry based on other public chains is another attempt to "step out".
DFS keep your feet on the ground and do the right thing and do the right technology.
Don't participate in the hot, edgy public-chain battlefield of the day. Not in a hurry to enter, does not mean that will miss anything, on the contrary, ready to go, choose the opportunity to move, more able to avoid the main risks of the battlefield, and through a more comprehensive understanding of the overall situation, and then first, slow as fast, do better.
These are only initial design documents. Does not represent the final implementation. Everything is based on the version that will eventually go online.
The wind and harmony of the twelfth lunar month have already spring, I wish a happy Laba Festival. A tribute to all the loyal holders of EOS, DFS, YFC, TAG, DBC, and PDD.
Sooner or later we will have to pay back .