ISSUAA -Next generation DeFi protocol for derivatives of real world and crypto assets on blockchain!

injhagi (26)in #bitcoin • 3 years ago

INTRODUCTION

Blockchain is a huge step towards providing equal economic opportunities. There are hundreds of millions of unbanked people and, at least, as many underbanked ones. Such individuals can benefit immensely from easy access to payment and investment opportunities that do not require a bank account or an ATM. Additionally, unlike fiat money, cryptocurrencies are, at the least, partially immune to inflation and government interference. Saving and investing are easier, safer, simpler, and quicker with crypto.

However, cryptocurrencies are too volatile and risky to be used as the only type of investment by most investors and real world assets such as stocks, stock indices or commodities are not widely available on the blockchain yet. And this is for a reason: Synthetic assets that use a central trustee who hold the assets in custody are against the law in many countries. Decentralized solutions for synthetic assets on chain currently available on the other hand face the risk to stay solvent even in volatile times and thus typically require significant over-collateralization, with the collateralization ratio sometimes reaching hundreds of percent. This severely limits the assets’ ROI.

Another issue is the liquidity of such assets. To be able to buy these assets, investors are needed which provide liquidity for these assets. However, while the liquidity providers will be able to earn trading fees, they are also exposed to significant pricing risks.

Here’s how ISSUAA solves these issues:

Minting derivative synthetic assets on ISSUAA requires one to deposit stable coins pegged to the USD. Investors receive token pairs, each consisting of one long and one short token. The long token is tied to the growth of the underlying asset and grows with it. The short token inversely mirrors the underlying asset’s value. Therefore, no additional structure is required to assume the risk of a price change. ISSUAA is designed to always have enough collateral in place. Given that ISSUAA liquidity providers can provide liquidity for both the long and the short token on the same underlying asset, they are able to minimize the price risks related to the underlying asset price fluctuations.

crypto #issuaa #cryptocurrency #token #blockchain #money #CryptoNews #cryptocurrencies #ethereum #DeFi #yieldfarming #polygon #matic #beastmode #tokenomics #assetmanagement #ETH

ISSUAA -Next generation DeFi protocol for derivatives of real world and crypto assets on blockchain!

Oladiran olalekan opeyemi Klik di sini untuk melihat profil Oladiran olalekan opeyemi
Oladiran olalekan opeyemi
Fbn insurance at FBNInsurance
Diterbitkan 1 Okt 2021

Ikuti

INTRODUCTION

Here’s how ISSUAA solves these issues:

crypto #issuaa #cryptocurrency #token #blockchain #money #CryptoNews #cryptocurrencies #ethereum #DeFi #yieldfarming #polygon #matic #beastmode #tokenomics #assetmanagement #ETH

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WHTAT IS ISSUAA?

The ISSUAA protocol is fully decentralized and set up as a DAO (decentralized autonomous organization). The system is built around a proprietary governance token, the Issuaa Protocol Token or IPT. The maximum supply of IPT will amount to 100,000,000 tokens. Thereof, the majority of IPTs will be issued as rewards to investors for providing liquidity and voting in the ISSUAA DAO governance polls. The issuance rate of IPT starts with 1.8m tokens per week and decreases by 3% each week, thus facilitating that early liquidity providers are rewarded higher while ensuring that the maximum supply of 100 million IPT tokens will not be exceeded.

Besides its function as a governance token, the IPT token is directly linked to the fees which are generated on the plattform: 0.05% of every trade conducted on the ISSUAA market place accrue to the IPT, making the IPT a value bearing, cash flow-linked governance token with best-in-class overall tokenomics for investors.

ISSUAA, the next generation DeFi protocol for derivatives of real world and crypto assets on blockchain, is now live on Polygon mainnet. After two months of testing and the finalization of our audit by Obelisk Auditing, ISSUAA is now open for anybody to invest in derivatives of real world and crypto assets and to earn high yields at relatively low risk while enjoying the low transaction costs of Polygon.

ISSUAA is a new, highly innovative DeFi protocol, which allows to bring derivatives of virtually all real world and crypto assets to the blockchain — in a fully decentralised way without any central counterparty. What differentiates ISSUAA from existing synthetic asset protocols is its high capital efficiency, which requires no over-collateralization and comes without the risk of liquidation as well as best-in-class, investor friendly tokenomics.

Also, it allows very low risk liquidity providing and yield farming, which is only marginally more risky than stable coin farming. As ISSUAA assets always come as pairs of long and short tokens, impermanent loss is significantly reduced when providing liquidity to both pools — a 50% move in the underlying assets results in an impermanent loss of only 3%.

ISSUAA is structured as a DAO, which is governed by the holders of its own governance token, the ISSUAA Protocol Token (IPT). The IPT token is used as the basis for all voting processes that are conducted, while at the same time being directly linked to the cash flows which are earned on the ISSUAA markets. Moreover, 60% (i.e. up to 60m IPT) of all IPTs once outstanding will be rewarded to investors providing liquidity in the ISSUAA pools and to IPT holders participating in ISSUAA DAO governance votes.

The decision to launch ISSUAA on Polygon is driven by our vision to build a vibrant community, which actively engages in the governance process of the ISSUAA DAO. To achieve this target and to also allow investors with smaller bags to invest in the ISSUAA pools and assets, fast and cheap transactions as well as a seamless user experience are required, without compromising on security, which makes Polygon the full stack scalable solution of choice for ISSUAA.

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ISSUAA -Next generation DeFi protocol for derivatives of real world and crypto assets on blockchain!

Oladiran olalekan opeyemi Klik di sini untuk melihat profil Oladiran olalekan opeyemi
Oladiran olalekan opeyemi
Fbn insurance at FBNInsurance
Diterbitkan 1 Okt 2021

Ikuti

INTRODUCTION

Here’s how ISSUAA solves these issues:

crypto #issuaa #cryptocurrency #token #blockchain #money #CryptoNews #cryptocurrencies #ethereum #DeFi #yieldfarming #polygon #matic #beastmode #tokenomics #assetmanagement #ETH

No alt text provided for this image

WHTAT IS ISSUAA?

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About Polygon

Polygon is the leading platform for Ethereum scaling and infrastructure development. Its growing suite of products offers developers easy access to all major scaling and infrastructure solutions: L2 solutions (ZK Rollups and Optimistic Rollups), sidechains, hybrid solutions, stand-alone and enterprise chains, data availability solutions, and more. Polygon’s scaling solutions have seen widespread adoption with 500+ applications hosted, ~600M total transactions processed, ~60M unique user addresses, and $5B+ in assets secured.

The tokenomics of the ISSUAA protocol
The success of any crypto project — and DeFi projects in particular — is closely linked to the tokenomics of the project. Ideally, the right tokenomics should:

support the growth of the project
govern the decision making process for the future development of the protocol
let the owners of the protocol token participate in a fair way in the revenues that are generated
We are convinced that all of these three aspects need to be considered as equally important, as they support each other. We thus built the ISSUAA protocol around these three guiding principles.

Distribution

The distribution process has two main targets:

Make sure that the IPT tokens are broadly distributed among its users, who are then responsible for the governance of the protocol.
Provide an incentive to attract new users and capital as well as community participation.
In order to reach these targets, we have planned to distribute the tokens in the following way:

Initially, up to 5% or 5 million tokens will be distributed to users which participate in the alpha testing phase. We will distribute tokens to all users that are actively interacting with the system and give feedback or help finding bugs. No capital commitment will be needed during this early phase, which we will launch shortly.

On top of this, 60 percent or 60 million IPT tokens will be distributed to users, which add value to the protocol by adding liquidity to the liquidity pools (80%) and by their active participation in the voting process (20%), once the protocol is live after the mainnet launch. Every week, 3% of the total so far unallocated pool will be distributed. By this mechanism, early liquidity providers will be rewarded over-proportionally.

Why does this add value for the protocol?

To be successful in the long term, the liquidity pools need to be sufficiently filled in order to make sure that investing is possible without resulting in a strong price impact. More liquidity will allow for more liquid assets to be added to the protocol and results in more trading volume and thus more revenue for the token holders.

The good news is, that growth of liquidity or total value locked (TVL) in the protocol does not reduce the incentive for new users to join the system — instead, it should result in a positive feedback loop which can make it even more attractive to add further liquidity:

DeFi tokens, which let holders participate in the revenue that is generated on its platform tend to trade above a multiple of 1.0x for the ratio

TVL / fully diluted market cap.

Mirror.finance currently has a ratio of 1.3x, while Synthetix has a ratio of 2.0x at the moment.

Let’s analyse the following scenario:

Let’ assume we are in week 4 after the main net launch. There is a total liquidity of 10 million USD locked in the ISSUAA market pools. In line with the lower ratios of its peers, the ISSUAA Protocol Token (IPT) is trading at 1.3x TVL for its max supply of 100 million tokens, which results in a fully diluted market cap of 13m or 0.13 USD per IPT token.

As we are in week 4 after the main net launch, roughly 2.6 million tokens per week are distributed to liquidity providers per week. At 0.13 USD per token this means that roughly 330k USD are distributed to liquidity providers per week — which would result in a return of 3.3% per week or an APR of >170%.

Attracted by the high yield in combination with the low price risk which ISSUAA offers for its liquidity providers, more capital is attracted to the platform. Total liquidity (TVL) thus grows in this scenario to 100 million USD. The number of IPT tokens for the users that provided the original 10 million USD in liquidity is thus decreased to only 10% of their original rewards. Buy what happens to their yield in USD? It should actually remain stable:

In line with our prior assumptions we continue to assume that the IPT token trades at 1.3x TVL/max supply. This means that the price of the IPT token should have increased to 1.3 USD per token. The rewards per week calculated in USD thus increase from 330k to 3.3m USD per week. The yield in this scenario would remain unchanged at 3.3% per week or >170% APR.

However, users that have received IPT tokens in the prior week would benefit significantly from the increase in TVL as they experience a significant value increase of their IPT token balance. This is enhanced by the fact that only 20% of the rewards IPT tokens are liquid immediately, while 80% are vesting for 3 months before they can be unstaked.

It is therefore in the best interest of all users to help the protocol grow and attract more capital. This should in turn lead to high amount of user driven marketing efforts — which also support growth and thus value for the IPT token. A positive feedback loop is created.

Besides the opportunity to mint new ISSUAA assets, which mirror the value of underlying real world or crypto assets, the market place for these assets is an integral part of the ISSUAA protocol. Trading on these market places will cost the active trader 0.3% transaction fee. Out of these 0.3%, 0.25% will go to the liquidity providers, while the remaining 0.05% will be attributed to the IPT token holders. While this might appear as a small amount at first glance, it needs to be considered that IPT token holders will participate in all trades in all market pairs — which will initially be 17 market pairs. So while only one sixth of the commission will be attributed to the token holders, the fees in reality will be almost 3 times the fees an investor in one single liquidity pool will receive.

But how do the IPT token holders benefit from these fees? In contrast to other protocols, the ISSUAA protocol will not use the fee pool to buy back IPT tokens. Instead, all users have the opportunity to burn their tokens. When this happens, the users will receive their share of the earned fees. This share is calculated by the users token number divided by the max supply of 100 million tokens — even if these are not yet distributed. If a user decides to burn their tokens, the fee pool for the current number of tokens would rise — it is thus highly unlikely that users will decide to do so.

Consequently, the fee pool will most likely provide a “lower floor” for the token price. The good news is, that this floor is set to rise with every transaction that is done on the ISSUAA market place. Hence, the IPT should always trade at a premium to the so far accumulated transaction fees, as buying the IPT means not only to buy a proportional share of these accumulated fees, but also (and especially) an equivalent proportional share of all future cash flows which will be attributed to the IPT(0,05% fees of all future transactions on the ISSUAA market place).

But why is it important that the IPT token holders benefit directly from a growing token value? Besides the fact that they should be fairly rewarded for their commitment to ISSUAA, this also serves two other important aspects:

Firstly, as the token is valuable, it is a clear incentive for new users to committ capital to the protocol in order to receive IPT tokens as a reward. The value of the token thus helps the protocol to grow.

Secondly, ISSUAA needs to make the community of owners of the IPT to decide wisely in its governance decisions. Especially when it it comes to decide if the upper limit of an asset has been breached or for determining the price at time of expiration, it is crucial that the community decides based on facts and not based on their personal holdings. Bad decisions would most likely result in a loss of trust in the system and would also undermine the value of the IPT token. IPT token holders thus have a strong incentive to vote honestly in these decisions — even if some of them have a personal interest to vote differently.

Therefore, a valuable IPT token is crucial for the consensus mechanism of the ISSUAA protocol, similar to why it is important for the Ethereum blockchain that Ether is valuable or for the Bitcoin blockchain that the Bitcoin is valuable.

ISSUAA offers unique advantages to investors and liquidity providers

Next Gen.AMM Model

First decentralized finance derivatives liquidity protocol without need for over-collateralization empowers attractive returns at moderate risk for investors providing liquidity.

Capital Efficiency

Every single USD stable coin to be paid in by investors/LPs for minting of assets and liquidity providing in asset pools is “working” and generating returns for investors/LPs.

Superior Tokenomics

Reward of active investors/LPs not only with transaction fees but especially with newly minted and weekly granted ISSUAA protocol tokens (IPT).

Global Access

Barrier free access for everybody to investing, minting, providing liquidity and trading of synthetic ISSUAA assets on chain.

The ISSUAA protocol

The ISSUAA protocol and its smart contracts run on the polygon blockchain and require USD stable coins for minting of ISSUAA assets and providing liquidity.

Enables creation, minting and trading of synthetic assets reflecting the price of underlying real world assets such as stocks and commodities or indices.
Provides unique and highly attractive tokenomics for investors and liquidity providers.
The ISSUAA Protocol Token (IPT)

Cash flow linked and value bearing

Limited supply
Value generation by trading fees
Fair distribution
Rewarded voting
The team is convinced, that laying the ISSUAA protocol development and exclusive governance via voting procedures into the hands of the community of owners of the ISSUAA protocol token is the right way to attract and retain the necessary competencies and participation for the future development and growth of ISSUAA as truly decentralized finance protocol.

All main smart contract currently in use by ISSUAA:

Polygon

Website : https://issuaa.com/

Telegram : https://t.me/issuaa_main

Twitter : https://twitter.com/issuaa2

Discord : https://discord.gg/ttu8vEQM6G

Medium : https://issuaa.medium.com/

Instagram : https://instagram.com/soficoagency

crypto #issuaa #cryptocurrency #token #blockchain #money #CryptoNews #cryptocurrencies #ethereum #DeFi #yieldfarming #polygon #matic #beastmode #tokenomics #assetmanagement #ETH

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Author
Bitcointalk username: injhagi
Bitcointalk profile: https://bitcointalk.org/index.php?action=profile;u=2622047;sa=summary
Eth Wallet address: 0xEdd3a3750A7B0905D69c77df210dCb23a38a526A

#blockchain #eth #btc #ico #issuaa #cryptocurrency #token

3 years ago in #bitcoin by injhagi (26)

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ISSUAA -Next generation DeFi protocol for derivatives of real world and crypto assets on blockchain!

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