Bitcoin pulse, guides and news

Monday, January 11, 2021

moving up

BOOT +6.6%, NTUS +6.1%, EXEL +5.2%, PKI +5.2%, FOLD +4.1%, TLYS +3.9%, EXAS +3.6%, AVTR +3.3%, EBS +3%, NSTG +2.3%, GILD +2%, CDNA +1.5%, AZZ +1.2%, NVCR +1% Other news:

MESO +70.3% (single dose of Rexlemestrocel-L provides substantial and durable reduction in heart attacks, strokes and cardiac death in patients with chronic heart failure) BNGO +24.3% (announces the kick-off of its next-generation cytogenomics symposium, the largest event yet to showcase saphyr's utility in genome analysis for genetic disease and cancer) SECO +23.2% (announces receipt of preliminary non-binding "going private" proposal) LLY +14.5% (Donanemab slows clinical decline of Alzheimer's disease in "positive" Phase 2 trial) ORIC +11.2% (provides corporate update and highlights key 2021 milestones; Three IND/CTA filings for ORIC-533, -944, and -114 expected in 2021) NIO +11% (NIO partners with NVIDIA (NVDA) to develop a new generation of automated driving electric vehicles) XCUR +10.5% (granted two fast track designations for Cavrotolimod (AST-008) from the FDA) WBAI +7.5% (expects to issue ~$14.4 mln worth of its Class A ordinary shares as consideration to acquire bitcoin mining machines owned by the Sellers) PASG +7.3% (announces plan to deliver on multiple meaningful catalysts in 2021) ATRA +6.8% Presenting at JP Morgan Healthcare Conf) PACB +5.2% (SoftBank has taken a 6% stake in PACB, according to Bloomberg) BLUE +5.1% (Bluebirdbio to separate oncology business into independent company) CYTK +4.3% (FDA granted orphan drug designation to CK-3773274 (CK-274) for the treatment of symptomatic hypertrophic cardiomyopathy) BIDU +3.4% (confirms plans to establish an intelligent EV company and form strategic partnership with Geely (GELYY)) KXIN +3.2% (a

TehMoonWalkers AMA 24/11/20

https://preview.redd.it/lddh1aru9pa61.png?width=1200&format=png&auto=webp&s=2c70d2c022f1482bbc7ff64c5c4a2ee27fe8a466

Q: TehMoonWalkers , APPLE: lead dev, ICO: management, DOTS: management
You can read the thread directly in Telegram here https://t.me/tehMoonwalkeRs/613040

Q: Please be so kind and introduce yourself and talk about your role in the project
ICO: I run icocountdown.com and have a background in computation science theoretics. I have previously helped projects like Tezos and Chainlink in their early stages. Concerning Debase, I am co-managing the project and consulting with regards to game theory. https://www.icocountdown.com/chainlink/ , https://www.icocountdown.com/tezos/
Q comment: damn those are quite some giants
ICO: alot more too, WAVES, NEO, COSMOS but that was when it was called antshares
APPLE: Hello! I am debase's lead dev. I an been a computer engineer with several years of software development under my belt. Came up with Debase as a way to solve problems faced by flexible supply tokens.

Q: whats the secret for a project to turn from lowcap to multi b$ cap in your opinion? having assisted so many projects on that road?
ICO: really its alot of good project management and also giving crypto what it wants. Solving a problem is the key and an element of luck is very good too

Q: What is Debaseonomics, why do we need it, what does it solve, and how does it work?
APPLE: Debaseonomics is a DeFi protocol that aims to create the first truly decentralized, governable stable coin through two assets, DEBASE, the elastic monetary token, and DEGOV, the governance token. We aim to achieve this with my innovative architecture that allows for open-ended external stabilization through smart contracts called "stabilizer pools" (s-pools). This design can be used to overcome the problems faced by other algorithmic (and non-algorithmic) stablecoins. So to simplify this pitch. When such tokens rebase (increase /decrease in supply) As soon as a contraction occurs. You see a big drop in participating in the token because why hold a token that keeps falling in value? Ie what happens with based,Rmpl, Ampleforth to some extend. Debase is meant as a framework to find the ideal solution to allow people to hold debase during a contraction.
ICO: you also need a good governance mechanism and support pools

Q: What exactly can you with Debaseonomics, and what makes it different to the countless other defi protocols?
APPLE: To understand why we need algorithmic stablecoins, we need to look at what are the short-comings of current stable coins. Stablecoins like Tether, USDC are centralized to the point where if they wanted to, they could censor people by blacklisting addresses. USDC has already started to work with US state policy, while USDT can "recover" coins that people lose in smart contracts if you contact admins, which makes both projects susceptible to pressures of censorship (for e.g., of Citizens who are believed to belong to a sanctioned country).
ICO: On the other hand there are collateral-based stable coins (like DAI, SUSD). Take DAI; ETH is deposited to power a certain amount of DAI according to a certain collateralization ratio. The issue with these tokens is they are correlated with the market since market crash events would mean collateral is revoked.

So to overcome the above issues, we had algorithmic "stable coins" like Ampleforth that were supposed to be uncorrelated with the market. The problem with AMPL and similar tokens is that it turns out, just changing token supply based on market activity is not enough to stabilize the coin. It's apparent now that you need some form of external stabilization, especially to carry you through your negative rebases cycles where pegging to target price is much more challenging. One of Debase's main innovations is the s-pool idea, which basically allows for this external stabilization.

APPLE: Specifically, A s-pool is open-ended and has the following two constraints only:

1) It should have a function that informs governance if it is requesting rewards for stabilization of DEBASE or not (and if so, how much)

2) The owner of the stabilizer should be as same as the owner of the Debaseonomics policy contract.

Since these pools have to be approved by governance, game theory dictates governance will ensure an additional constraint:

3) It should work to stabilize the price of Debaseonomics and benefit DEBASE holders either by providing buy pressure, removing tokens from the supply, or any other means including but not limited to yield farming, debt mechanisms, arbitrage, collateralization by a protocol/synthetic or digital asset, etc.
Basically from this it can be seen that anything by design is a stabilizer pool

ICO: fundamentally we want a completely decentralized stable coin with governance, that gives active monetary supply policy to the users. so the users in a decentralized way can see how socioeconomic values impact them and by using the hivemind we can create the ultimate decentralized stablecoin. users can vote on pools, users can votes on changes to oracle systems if they fail. all the protocol is widely adaptable and changeable through the governance system along with new approaches

APPLE: What this means is you can use alot of different approaches already present and modify them so they focus on the main goal of stabilization. Meaning you can have burn pools like ESD. Or yield vaults like YFI

Q: the more decentralization, the more areas to be attacked, how can you ensure safety?
ICO: i would disagree with that, with regard to decentralization the most decentralized coin is currently BTC, the more open source it is the less attack vectors occurr because of the open source nature and non centralized mining construct there is no real time since satoshi disappeared. i am not comparing this project to bitcoin or ethereum however these projects have stood the test of time because of their decentralized nature. the more decentralized the better for security
Q comment: yes but btc is very limited in its functions, which reduces areas of attacks

DOTS: Let me just chime in, having said all that..We have hired a security consultant full time (@VidarTheAuditor) to check all contract deployments. Additionally, governance can check on these contracts before the proposal is passed.

ICO: yes so in a decentralized nature we have added and outsourced other independant people

Q: Let's talk about the token(s); what is the benefit of holding it? And what can I do with it?
APPLE: Rebase simply refers to changing the supply of a token positively or negatively based on supply and demand to get the price to be around the target price, which in this case is 1 Dai. This doesn't mean Debase's value would be 1 Dai in the short term.

As demand for Debase increases, so will its price. This, in turn, will cause its supply to increase. So if you are early to Debase and own 1% of the network when the supply is about 100,000 tokens, when the market cap of Debase grows by a factor of n, the value you hold will grow by the same factor. Debase wants to accrue a bigger market cap so it can eventually stabilize to its target price. This is just one of the strategies that Debase will use to stabilize itself, apart from stabilizer pools.

As for Degov, you need it to vote on the monetary policy of Debase. In all probability, governance will vote for profit sharing with successful stabilizer pools; a recent lesson in DeFi is that you need a revenue stream for governance tokens to ensure they are in the right hands; otherwise, you just have empty speculation.

ICO: the basic DEBASE token is the currency which is a monetary system, the DEGOV system is the token that allows for governance and conduction over the monetary supply and dynamics of the DEBASE token. holding the DEGOV token allows users all to vote on what sort of monetary policy they want, pools, time for rebases, oracle systems and many other things. the code is extremely flexible in its design and can be changed with the DEGOV token, the DEBASE token is the fundamental currency so you are basically having a situation where you can on the fly change constructs of a protocol through decentralized governance procedures

Q: how do the tokens relate to each other? and how can investors receive both of them?
DOTS: In terms of distribution, they were both distributed through fair launch mechanisms. There was a bug in V1 found in audit, so we airdropped 70 percent of the new Debase tokens to community through a procedure that they voted on, and mediated by the auditor so it was all fair. The rest 30 percent is mined through Dai in pool 1 or Dai/Debase LP in pool 2. As for Degov, mining begins on the 26th, so in a few days.

ICO: the first initial coins were mined with pure DAI or DAI/DEBASE LP, which could be unstaked at anytime. that was mining the basic DEBASE, now on thursday you must use the DEBASE/DAI UNISWAP LP2 tokens to mine the DEGOV. you can check out the mining here if you are interested https://debaseonomics.io/dapp/staking

Q: What stage is the project at, talk about the roadmap?
ICO: DEGOV mining opens on 26 November at ~9:15 am UTC. u/jusTaPunkk is coding more s-pools as well as the interface necessary for users to choose the stabilizer pools they want to stake their assets into, in an easy-to-use and informed manner. all the code of the project is complete apart from the addition of the other pooling system, since these need to be voted in with governance (DEGOV) and as many pools can be added as people want essentially. we are currently working on the gui (graphic user interface) to allow streamlined voting and a more active user experience since the voting times will be quite quick. this allows for more user participation in the longrun and also a streamlined project where we can get a large majority of users to interact and therefore vote so we invite everyone to join us

Q: Why is the team/dev anonymous?
APPLE: One of the core principles of DeFi protocols should be to maximize regulatory arbitrage. Anonymity will help prevent the kind of regulatory red-tape faced by previous attempts at decentralized stable coins like Basis. Additionally, the distribution of the tokens has been through fair launch mining. There are no premines/team tokens. Even the migration of tokens from V1 to the current version was fully mediated by the community and our security consultant. And to give an example from history. Basis one of the first stable coins. Failed to launch because of the same regulatory problems

ICO: we understand also that there is alot of rugs in the defi space, so liquidity is also locked https://team.finance/view-coin/0x9248c485b0B80f76DA451f167A8db30F33C70907?name=Debase&symbol=DEBASE but we believe the code speaks for itself and due to the independant audit we believe it will be a great project https://twitter.com/VidarTheAuditor/status/1327009463728033798?s=20 that is the link to the new audit so everyone can check for themselves

Q: all of the above seem pretty complicated, How do we understand your project?
ICO: Our community wanted an educational series, so we wrote a series of articles to explain the concepts of Debaseonomics in simple terms. Please find them at debaseonomics.medium.com. we constantly post about developments and strategies here are a few examples:

https://debaseonomics.medium.com/rebasing-for-smol-tings-a-simplified-guide-7888a1bf4bd7 this is an introduction to general rebasing mechanisms along with help and how DEBASE will aid and compliment the space in stablecoins along with a short history of stablecoins
https://debaseonomics.medium.com/uniswap-and-elastic-supply-tokens-troubled-co-dependence-ba3ecfcfcc76 this explains rationales for DEBASE and the co-dependance with stablecoins and uniswap along with other tokens that go through those mechanisms

Q: please talk about the Funding situation?
ICO: It's a fair launch project, with private investors paying for Audits and other leg work necessary to make sure people learn about what we are achieving here.

Q: What about partnerships, any you can disclose yet?
ICO: we cannot disclose any partnerships currently we are in talks with exchanges and otherwise (CEX's) and many other people in the DEFI/Ethereum space. we have currently retained vidar the auditor to make sure all the security is compliant he is very well respected and we have also onboarded a developer from a polkadot project to help with the code for the computational theoretics of the pool if anyone is interested in helping development then you are welcome to join us and learn more in the telegram http://t.me/debaseonomics

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Events Online - Stacks 2.0 Launch Event

📢There is a special online event approaching on 𝙅𝙖𝙣𝙪𝙖𝙧𝙮 𝟭𝟰 - 𝗦𝘁𝗮𝗰𝗸𝘀 𝟮.𝟬 𝗟𝗮𝘂𝗻𝗰𝗵 𝗘𝘃𝗲𝗻𝘁!

And we’d highly recommend you to join it as you have a great opportunity to discover the Stacks community.

📰According to its official website, Stacks 2.0 is specialized in providing safe applications and smart contracts to Bitcoin. Also, the event organizers promise to hold various application launches, musical shows, interesting disclosures, limited edition prizes, and invitees from OKCoin, Staked, Blockchain.com, etc.

📅It's vital to stay on top of cryptos and blockchain things while the market is developing and changing every day. So, hurry up and save your place! For more information, please visit the event’s official website, https://stacks2.com/.

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Codebase Ventures|The Sleeping Giant

This does not constitute financial advice, as with all investments it is your financial responsibility to conduct your own DD and assess whether the investment aligns properly with your short-term and long-term strategies.

CODEBASE VENTURES - https://www.codebase.ventures/

TICKER: CODE (CSE); BKLLF (OTCQB); C5B (FSE)

PT’s in CAD: $1 (Short), $3.5 (Medium), $10 (Long)

What is Codebase Ventures?
Codebase Ventures is a venture capital firm based out of Vancouver, British Columbia focused on investing in emerging markets predominantly related to the fields of technology and pharmacy. They have been operational since 2009, finding a good foothold in the blockchain, AI, cannabis and, most recently, psychedelic sectors. Their holdings which we will touch upon today are Arcology (Blockchain), Pressland (AI/News/Media), and very briefly World High Life (Cannabis) and Titan Shrooms & Psychedelics Inc. (Psychedelics). There is a lot to cover with this company, but I am going to focus more predominantly on catalysts that will have them act bullishly in 2021. My overall assessment of this company is that it has been completely underwritten and is likely to be a sleeping giant that could conservatively have $50 (CAD) shares by the end of the decade.

The company’s primary focus at the moment is blockchain and supporting its blockchain initiatives. This is highlighted by their recent acquisitions over the summer.

BEFORE BEGINNING (Skip if you understand what blockchain is and know how it will be used)*Here are a handful of videos one can watch to better understand what blockchain is:*Vice: Inside the cryptocurrency revolution - https://www.youtube.com/watch?v=u-vrdPtZVXcHow does Blockchain work? - https://www.youtube.com/watch?v=SSo_EIwHSd4

HOLDINGS

Arcology (Blockchain) - https://arcology.network/

Currently, Codebase Ventures owns 30% of Arcology, with the option to expand that to 51% ownership.

Arcology is a company focused on building a highly advanced blockchain network with the intention of it being utilized in both public and private sectors. The Arcology network itself is one that is highly malleable with a number of possible use cases ranging from the internet of things to social infrastructure including digital id’s, wallets, and banking, to private industry, to cloud based storage and PC security. The network is being designed with real world applications in mind, and is a strong contender for adoption by governments and private corporations as blockchain becomes increasingly pervasive and essential to society’s day to day lives. It is likely that in the future, most digital devices will utilize blockchain for increased security purposes amongst a number of other things.

There are several essential problems with current blockchain networks; these include expensive and slow storage, unscalable system architecture, lack of serial execution, unsophisticated consensus algorithms, inefficient network communication, weak security models and fragmented ecosystems. All of these problems make blockchain, in its current form, incredibly bulky and impractical for real life application. These systems would be incredibly expensive to implement and sustain, requiring significant computational power. They are also very slow, which is something unreasonable when we consider how many transactions (interactions that can be recorded as data) occur in a given second all across the world. Needless to say… Most blockchain networks cannot be integrated into society on a large scale due to their lack of technological capability to upscale with social demands. While on a micro-cosmic scale we can integrate current blockchain networks to fulfil small duties, we cannot implement them in a way in which something like a smart city or smart cities would be possible. To do this, we would need a network that is fast, cheap and very smart.

This is essentially what Arcology is proposing itself to be. An incredibly fast, cheap and intelligent blockchain solution. They are the world’s first self-organizing, hierarchical blockchain network that is simultaneously scalable, secure and fully decentralized, which is made possible through the use of artificial intelligence and machine learning. In past reports, Arcology has shown itself to be well on its way to surpassing a million transactions per second, which would make it the fastest blockchain network on Earth currently. Simply put, it is a blockchain network for the real world, and it is likely to come out by the end of this year. In between now and then there are a number of catalysts, which I discuss a little further in the catalyst section of this report. There is huge upside potential for this network to be adopted by governments and industries, but for now, I am going to take a step back and talk a bit about some of Arcology’s unique features. The following is based on the Arcology’s recently released technical paper following their first testnet which can be found here: https://docs.arcology.network/docs/introduction.html

Five unique features of the Arcology network- Microservice architecture- Fully parallel transaction processing- Cluster computation- Multifactor consensus algorithm- Self-organization of nodes

Architecture - https://docs.arcology.network/docs/arcology-architecture

From the report, “To achieve Arcology's design goals, it naturally demands a flexible, scalable and loosely-coupled system architecture for client software. At the core of Arcology client software is a microservice base architecture. The only way to enhance blockchain infrastructure to a level that it could support millions of transactions is through horizontal scaling. In this type of design, functional modules are individually deployed on multiple machines connected by a high-speed network.” In other words, Arcology is designed to be fast, and is working on becoming the fastest blockchain network on earth.

Parallelism - https://docs.arcology.network/docs/parallel-merkle-tree

Arcology is the first and only blockchain network to achieve full parallelism. This means that transactions can be recorded simultaneously and stacked as such in the blockchain. This increases the network's security significantly and allows for greater scaling for real-world applications such as high volume financial trading, social media communication, or real-time recording for supply chains.

Cluster computation - https://docs.arcology.network/docs/solution-overview

To quote Arcology directly, “Perhaps most important is a node cluster’s ability to process transactions in parallel. This means there’s no theoretical limit on how many transactions a single node cluster can process — it’s simply a matter of adding more machines.” Combine this with a decently sized crypto mining operation, and the sky's the limit. Codebase recently announced their interest in acquiring a crypto mining operation which would fit in quite well to compliment Arcology. Additionally, Arcology has been weighing the option of a potential coin offering. This would be a logical step to create a peer to peer network to assist with the computational requirements of the network. I’ve attached some DD’s that I’ve done in the past about crypto miners, they are another very bullish sector essential for our blockchain-based future in my opinion.

Consensus - https://docs.arcology.network/docs/consensus

This is a section that I believe is best explained by the report, but the simplified version is this; there has long been a trilemma in the blockchain industry between scalability, security and decentralization. For a long time blockchain networks have only been able to successfully integrate two of the three at any given time, with the successful integration of all three being practically unheard of… until now. Arcology utilizes a system known as multi-factoring consensus which allows all three of these respective areas to be addressed and flips the proof of work vs proof of stake consensus algorithms on its head. This allows for greater flexibility, scalability, speed and performance, and provides a fair environment for would-be-miners of their network. Ultimately, it increases the likelihood of them surpassing their million transaction target and being widely adopted both by central powers (governments and industry) as well as by smaller developers.

Self organization - https://docs.arcology.network/docs/network-partitioning

Taken from the report, “ Arcology uses a unique partitioning algorithm called Self-Organization (SO), a transparent and intelligent process that dynamically groups accounts based on certain criteria, including historical behaviour. This is possible because most transactions are not actually processed in random patterns; over time, many users show tendencies to interact with certain other users. This provides an opportunity to optimize network configuration.

Arcology’s Self-Organization is designed precisely for this. It is:

● Adaptive: a dynamic and ever-happening process;

● Dynamic: active users are grouped into shards to reduce friction;

● Efficient: cross-partition communication is reduced to negligible levels.

Arcology’s Self-Organization is a much more intelligent network partitioning solution, it will significantly reduce cross-partition communication and overhead that comes with it. Self-organizing is the technology designed for scalability.”

Storage - https://docs.arcology.network/docs/data-storage

I also want to include this bit about cloud storage which some of my IT friends pointed out to me.

Storage could be a big play for them and give them a major foothold in competing against cloud storage providers such as Apple, Amazon, Google and Dropbox. Comparing them to a service like Amazon Web Services (which generates Amazon $35.08B USD annually) Arcology has the ability to truly disrupt them. This is because Arcology proposes to be cheaper, faster and smarter in terms of data storage. It also enables for greater customizability in the hands of developers, so this ensures that your data is stored the way you want it to be, ensuring the fewest number of redundancies. No doubt, this could be a huge blow to Amazon who utilizes its AWS for the purposes of deep learning. Even if Arcology steals only a billion dollars out of the cloud storage sector, this should still put CODE at a $6 CAD per share.

2021 is looking to be a perfect year for Arcology and Codebase. There are several major catalysts likely to occur between now and early 2022 for these two companies. Please see the catalyst section of this report to get a better idea of what those are.

Pressland (AI/News/Media) - https://pressland.com/

Pressland is a wholly-owned subsidiary of Codebase, focused on the task of combating fake news. The company is working to build audience engagement tools for news media organizations while authenticating the accuracy of published news. The goal of Pressland is to reinvigorate a new era of public trust in the news and media. They have most recently partnered up with the company Showcase in order to maximize their coverage on engagement efforts.

Taken from a publication:

https://ca.proactiveinvestors.com/companies/news/908847/codebases-pressland-subsidiary-strikes-strategic-partnership-with-digital-platform-showcase-908847.html

“Pressland has now indexed and analyzed over 10 million articles, 2 million keywords and 200,000 writers, according to Codebase. Pressland's platform uses proprietary software which, with machine learning, artificial intelligence and natural language, collects and analyzes the news media’s production data.

When commercial services debut in 2020, this data will be offered as a SaaS (Software as a Service) product to social networks, search engines and news distributors in a bid to fight fake news and misinformation…”

Pressland also appears to be on the verge of becoming a blockchain-based play. This of course makes sense, as blockchain is a secure way of securely archiving news media and user data for the purposes of long-term storage in a non-tamperable way. This of course will be important for the future, and co-aligns perfectly with their ongoing blockchain initiatives. It is likely that it will take minimal effort for the company to integrate their ongoing projects into these services.

World High Life and Titan Shrooms & Psychedelics (Cannabis and Psychedelics)

World High Life and Titan Shrooms are two investments of Codebase. I will be talking more generally about why to be bullish on the cannabis and psychedelic sectors, as I have already covered quite a lot with this report. So, treat this as the icing on the cake. The cannabis sector is poised for a bull run after Biden’s inauguration. A democratic win is good for both cannabis and psychedelics as they have a friendlier legal environment which can be helpful for long term change.

World High Life stock recently dropped however. This is likely due to the ongoing situation in the UK (Brexit, new strain of Covid, etc.) I have to do more research into this, but in the bigger picture it’s a smaller holding compared to their blockchain and AI plays. Still this may leave some concerned, to which I will indicate that during the summer 2020, World High Life had record breaking sales. The macro environment is lining up though that the cannabis sector should be able to have a good boom.

Titan Shrooms is a well positioned company within the psychedelic sector, which will be a massive component of the mental health market in the near future. It is projected that mental health will be a $16 trillion USD market by 2030. There have been a number of breakthrough studies in the last two decades showing the long term impact that psychedelics can have on depression, anxiety, PTSD, addiction and even Alzheimers. It will be a really large market in the future, likely changing the course of medicine altogether. Recently Oregon, DC and New Jersey decriminalized or legalized the medicinal use of plant-based psychedelics. I may write up a DD for a couple of psychedelic stocks in the future.

CATALYSTS

Recently in the News

- Codebase raised $5 million in private placements since December (search up their recent private placement news releases)- Announced that they are finalizing Arcology’s testnet 1.0, going to be going forward with a release of a developer kit towards the end of February. They also gave a loose timeline of upcoming events for Arcology (see upcoming).- They continue to discuss the possibility of a Arcology coin offering in the Summer of 2021. It hasn’t been finalized but if you look at their recent acquisitions in the Summer of 2020, all of them indicate that this is indeed a plan that they will likely be set in motion. Of course it is yet to be confirmed, but I believe we can be cautiously optimistic.- They announced that they are going to look to expand into crypto mining. This is very exciting and very unanticipated. If we look at the crypto mining sector, HUT, RIOT, MARA, DMGI, BITF, HIVE, ARBKF, etc. we can all see that these have become incredibly bullish ventures. This also provides additional support that they may provide a coin offering, as having a crypto mining operation would enable them to do so.

Upcoming

The following is a list of catalysts for Arcology, dates still need to be confirmed, but the likelihood is that this is the roadmap for 2021 to early 2022.

Arcology Working Roadmap Sequence:

- Current Phase: addressing results from Testnet 1.0, refining technical components to improve performance data- Release Software Development Kit - CONFIRMED LATE FEBRUARY- Conduct Testnet 2.0 – focus on stability, user experience and verification - unknown- Potential Coin Offering - unknown- Conduct Full Scale Testnet - unknown- Release Mainnet - unknown

Macro Environment Catalysts

- For the bull case on the blockchain industry and crypto please see news articles in the appendix- Psychedelics will be receiving their first ETF on January 15th. This is likely to be incredibly bullish forcompanies within the psychedelic sector, which should include CODE. While their holdings are small incomparison to their blockchain operations, they are still a part of the sector which is bullish.- Biden being elected gives a good bull case for both cannabis and psychedelics in general, as we are likely to see more progressive laws regarding the medicinal use of both cannabis and psyches than under a Republican United States.

RISKS

Financials

The financial situation of the company is something to take into consideration when assessing this investment. The company is currently operating at a $19 million CAD loss. This is obviously concerning, however when one looks at their company history we can see that most of these losses were incurred more recently and directly align with their recent investments, most of which have come in the form of acquisitions. This is to be expected of any relatively new venture capital firm. Most operate at a loss until their investments come to fruition. The company has been actively trying to mitigate this by conducting a number of private offer rounds. So far they have raised 5 million in these financing rounds.

Dillution

In the past, the company has had issues with dilution. They had to conduct a reverse 10 for 1 split in June, 2020. I think that they currently have their share structure under control, however, it is something to keep in mind with their ongoing financing rounds, where private investors are receiving both common shares and warrants. I don’t think that this will present an issue, especially as these private funding rounds have been increasing the cost per share month over month, but it is worth keeping in mind.

Short Term Bitcoin Bubble

As the company is tied to the blockchain industry, they are undoubtedly tied to fluctuations within the price of bitcoin. Long term bitcoin is expected to well surpass $100k USD in value, however, in the past several weeks, we have seen an unprecedented rise in the value of bitcoin, which has many calling for a correction. I am not sure whether this is going to happen or whether it will in fact simply sidestep at some point. I have attached in the appendix a bull-case for bitcoin in terms of upcoming catalysts. That being said, as with all investments, it is important to price cost average in, as it is your fiduciary responsibility to act responsibly with your money. In the event of a dip, I am planning on buying significantly more CODE as the long term outlook is still quite bullish, and bitcoin too is very bullish in the long term.

CONCLUSION

Codebase Ventures is a company that is positioned quite well for substantive growth in the year 2021, and the decade onwards. Their investments in blockchain, AI, cannabis, and psychedelics are all things that will pay off in the long term. Arcology is a promising venture that should have everyone excited due to the sheer number of catalysts coming our way this year. I believe that a return to former all-time highs of $3.90 CAD, is inevitable on the rise of bitcoin alone. Throw in the rest, and we could easily see $10 CAD by the end of the year. Investors will want to have a position before February, where we should begin to see stable growth to the release of Arcology’s developer kit.

Anyways, on a personal note. I hope that I did this company justice. It was quite a large undertaking to get this DD out to you guys, so I hope that it proves useful. I am incredibly bullish on this company and excited to see what becomes of Arcology. Please do your own DD into them as well. They are, in no uncertain terms, very exciting and very very bullish.

TL;DR

Blockchain is long term bullish, Codebase owns Arcology which has promising blockchain tech, so they are long term bullish. AI, cannabis and psychedelics are also very bullish. Overall, this company is overlooked, and people should seek a position before February.

APPENDIX

Most Recent DD’s

Crypto Related Watchlist:

https://www.reddit.com/r/pennystocks/comments/keb77e/crypto_related_watchlist/

Massively Overlooked Crypto Play - HUT8 Mining DD:

reddit.com/r/pennystocks/comments/k9ss77/massively_overlooked_crypto_play_hut8_mining_dd/

Bitcoin Bullish News

Stimulus:

https://www.washingtonpost.com/us-policy/2021/01/08/biden-stimulus-plan/

M2 Money Supply: https://fred.stlouisfed.org/series/M2

Bitcoin Shortage:

https://www.marketwatch.com/story/bitcoin-is-headed-for-a-supply-shortage-and-that-will-keep-pushingup-prices-11609861504

Institutional Buyers & More Shortage:

https://cointelegraph.com/news/bitcoin-shortage-as-wall-street-fomo-turns-btc-whales-into-plankton

Paypal Crypto Rollout:

https://newsroom.paypal-corp.com/2020-10-21-PayPal-Launches-New-Service-Enabling-Users-to-Buy-Hold-and-Sell-Cryptocurrency

A quote from the paypal article: “Beginning in early 2021, PayPal customers will be able to use their cryptocurrency holdings as a funding source to pay at PayPal's 26 million merchants around the globe. ”

While the owners of Bitcoin keep their fingers on the pulse 24/7, Ethereum entered the ranking of the most expensive assets in the world for an hour.

The Ethereum team had a lot to celebrate this week. Altcoin got into a hundred of the world's assets with the maximum market value thanks to a jump in the rate to $ 1.15 thousand. Then, the capitalization of the cryptocurrency had reached almost $ 125 billion.

But within an hour from the 100th line, it was replaced by Starbucks, which now has a market value of just over $ 125 billion.

For this cryptocurrency, this level of the rate is a new maximum. Previously, the maximum point was reached only in February 2018.

Soon after the rise, the value of the altcoin began to plummet to $ 900 but then stabilized at $ 1000.

By the way, Bitcoin now takes 12th place in this rating. The capitalization of the top cryptocurrency is $ 580 billion. Thus, BTC has beaten Samsung and the Visa payment system but it is inferior to such monsters as Google, Amazon, and Apple. The first places in the rating are steadily occupied by silver and gold.

Now experts predict several possible scenarios for the further movement of the Ethereum. The first forecast assumes a deeper temporary fall to the level of $ 530- $ 550, where the altcoin will be able to accumulate resources and continue its growth later. In the second forecast the price will remain stable at $ 600-700.

The situation is similar to Bitcoin. On January 6, its rate also exceeded the historical maximum with a mark of $ 35.7 thousand. Over the last quarter of 2020, the BTC rate increased by 264%, and since March last year - by 840%! But, experts warn that the currency may fall sharply to at least $ 20 thousand if players with large portfolios start selling it.

Against this background, forecasts for ETH for 2021 look much more stable because its team has proven the ability to develop the project, and the community - the strength to support them in this development. In any case, experts do not expect a wave of growth of more than 10% of the current level by the end of the year. In the case of a successful launch of phase 1, and then a phase 1.5 after a year and a half, the cryptocurrency rate has a big chance of exceeding not only $ 1 thousand, but also $ 1.5 thousand.

For projects at this level, it is always important to attract expert developers to the team on time and enlarge the loyal audience, as happened with Ethereum. This is the only way to create a high quality and strong product.

By the way, one project in this area, which today also actively attracts specialists and users for feedback, is BitMarket Network Client. This is an alpha version of an open-source local cryptocurrency wallet, which makes it as transparent as possible and allows outside developers to carry out an independent audits. Soon, this client application will allow users who prefer to invest not only in Bitcoins but also in Ethereum and other cryptocurrencies, store them in one wallet, as well as make fast transactions at a high level of security in the event of price fluctuations in the market.

https://preview.redd.it/d1l7bozsuoa61.jpg?width=1200&format=pjpg&auto=webp&s=9bf79e4b92d6592e2cabc9728a0093e4a7071eb9

Sunday, January 10, 2021

DeFi For You. Technical Chapter | DFY token | DeFi For You

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WHITE PAPER - DeFi For You.™ Technical Document

8 DECEMBER 2020

Version 1.5

#DFY - DeFi For You.™

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INTRODUCTION

In this white paper, we will explain the profound benefits and our way to make them happen. This is year 2020 and DeFi hasn’t even started. Our vision is bold.

Our Mission to build a unique and groundbreaking service platform that gives our users the opportunity to purchase goods and financial services online using the #DFY blockchain token. The #DFY token is LIVE already today and works on both the legacy blockchain (Ethereum ERC-20) as well as on the just new state-of-the-art blockchain Binance Smart Chain™ (BEP20 which is 100% code compatible with the Ethereum blockchain ERC-20). #Binance DeFi software base protocol has exceeded our expectations from both quality and performance perspective. The migration from ERC-20 is seamless. As Ethereum struggle with scaling and may do for a few years to come, we expect the Binance Smart Chain™ to become a Ethereum “killer from a technical and

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a d o p t i o n p e r s p e c t i v e . There are 3 standards of DeFi tokens, BSC = Binance Smart Chain™ (BEP20), this is t h e b a s e

protocol where

we build smart

contracts on. There will be two token standards for the DEX trading (BP2 and BP8).

Over time we will more than likely run a combination of the two.

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You can purchase the #DFY token and hold in your “Trust Wallet”.

We have selected the “Trust Wallet” which you download at the Apple© AppStore™ or Google™Play (https://trustwallet.com/.

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We support Binance™ and have great experience with the #TrustWallet.

The #DFY token is not available for public purchase until launch of the DeFi For You.™ platform. The DeFi For You.™ corporation and holding company NxLux Club Limited is based in Vietnam.

The #DFY token is already in live operation. Final verification was completed in September 2020 . You can hold your #DFY Tokens in your #Trust wallet (downloaded from Apple or Google Play). You will not be able to transfer your #DFY tokens from your wallet until final software protocol verification has been completed.

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DeFi For You.™ - #DFY Token Distribution

The initially issued and sold ERC-20 tokens will automatically be transferred over to the Binance Smart Chain™ (#BEP20 blockchain).

Total amount of #DFY tokens issued (100%) = 1 billion;

• #DFY Tokens released to seed investors (5%) = 50 million

• #DFY Tokens available for sale (30%) = 300 million

• #DFY Tokens available for R&D, marketing and cost of sales (30%) = 300 million

• #DFY Tokens available for team, founders and future hires (15%) = 150 million

• #DFY Tokens Locked in DeFi For You.™ Treasury for 5 years by smart contract (20%) = 200 million

Demand for DeFi quality assets is increasing rapidly. We are expecting a significant demand from a market looking for quality DeFi token investments. DeFi For You.™ and #DFY lead the future of DeFi using #Binance blockchain technology.

REAL CUSTOMER VALUE DEFI FOR YOU.™

Taking a loan against collateral, with conditions closely tied to your reputation, has been around for a millennium with surprisingly little change.

Someone with no collateral and no reputation will probably not get a loan at all, if they do, it will be at a huge interest rate. From that baseline, conditions can be improved in two dimensions as follows;

Providing better collateral

• Collateral => Average conditions.

• A stable collateral => Good conditions.

• A stable an easy to repossess collateral => Excellent conditions.

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Proving a better reputation

A good reputation of the lender => better conditions.

Loan Conditions

Zero Collateral

Average Collateral

Good Collateral

No reputation

Very Poor

Poor

Average

Average reputation

Poor

Average

Good

Good reputation

Average

Good

Excellent

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Smart contracts introduced a rare improvement in that the collateral can be trivially repossessed, in fact extending the dimension 1 with a fourth level:

• Ideal collateral => ideal conditions

When cryptocurrencies are used as collateral, in combination with a smart contract, a collateral is created that is both value transparent, trivially and instantly repossessed.

In fact, this collateral is so good, that the reputation of the lender no longer matters. In the first phase of DeFi, this 2000-year-old-principle suddenly collapsed into:

Loan Conditions

Zero Collateral

Ideal Collateral

No reputation

No loan

Good

Average reputation

No loan

Good

Good reputation

No loan

Good

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With smart contracts using market data oracles and cryptocurrencies as collateral, the value said collateral can be assessed in real time, unlike in traditional finance where e.g. the value of a property that can be rather uncertain e.g. during times of financial crisis. An oracle in blockchain context just means a system that interfaces oﬀ-chain data such as trading information from a centralised exchange to the blockchain world.

Further, smart contracts enabled that cryptocurrency collateral to be instantly and trivially repossessed should the value fall below the threshold where the collateral no longer covers the loan. Again, compared to a property as collateral, this is a huge improvement.

Further, smart contracts enabled that cryptocurrency collateral to be instantly and trivially repossessed should the value fall below the threshold where the collateral no longer covers the loan compared to a property as collateral, this is a huge improvement.

As a result of these risk mitigating and operational advantages, suddenly a whole industry of “DeFi” emerged, where entities could oﬀer loans far at far better conditions than has ever existed in the traditional loan industry and with no requirement for credible reputation for the lender.

Initially, many critics claimed the entire DeFi space is a scam for oﬀering such “unsustainable conditions”, without understanding that there is a fundamental advantage over the traditional loan system, enabled by smart contracts as explained. While many initial projects were no doubt simple cash grabs, there is a genuine systematic eﬃciency and risk mitigation advantage enabled by this technology that manual traditional handling can never do, that is why better conditions can be oﬀered. People who have claimed that “crypto and DeFi is a Ponzi” have not taken the time to understand this in our experience.

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While this 1st phase of DeFi no doubt is one of the few huge inventions to this sector in two millennia, providing enormous and genuine value to millions of people already, we believe it can be taken to Phase 2 already now.

In our opinion, the concept of Reputation has not become irrelevant, it is a fundamental principal of humanity, spanning probably 100,000 years back and it will not go away.

DeFi For You.™ is an initiative to combine the innovations of DeFi Phase 1 with a new blockchain based reputation system and a few elements from the traditional lending and pawn world, creating a new complex as follows:

DeFi For You.™

๏ Competing loan providers on a transparent market

๏ Lender reputation system, irrefutably stored, updated and viewable on the blockchain

๏ Cryptocurrencies as loan collateral

๏ Physical assets as loan collateral

๏ Smart contract to enforce and administer loan repayment

Credit is one of the key enablers to modern society. One of our idols, Swedish industry legend Percy Barnevik, spent most of his later part of his life eliminating poverty in entire regions of the world with micro loans as the only tool.

Unfortunately, such funding and dedication is in short supply. Eventually even Mr. Barnevik’s fortunate ran out and in an interview he said that he wished he had made more money, so that he could have helped more people. (No aﬃliation, we are just fans.)

Without such initiatives, credit remains completely out of reach or available with only poor conditions to the majority of the world population today, not just in 3rd world countries, but also in the most advanced societies.

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In fact, it is at a point where people with a good reputation and collateral to oﬀer in advanced societies, still cannot get good loan rates because much of the traditional finance is stuck with a view where a life-long 9-to-5 job is expected, with modern work setups in the gig economy and social media being frowned upon as “not real jobs”.

Some FinTech companies have already begun disrupting this space by using other indicators than 9-to-5 salary to assess the likelihood of loan repayments, especially in China where apps like WeChat provide a gold mine of data with little privacy concerns.

For example, it has been found that people who answer the phone are more likely to repay a loan than people with a lot of missed calls. By combining 20 or so indicators, loan conditions can be set with great success.

We believe these ideas can be improved upon using smart contracts and the irrefutability and immutability of the distributed ledger (blockchain).

We believe better loan conditions can be oﬀered to lenders, at the same time as oﬀering higher profitability for the lenders.

We believe in creating a more inclusive credit system for the modern world.

We believe access to credit is one of the most important tickets to success today.

Most “crypto projects” don’t need a token or a smart contract. DeFi For You.™ is uniquely enabled by smart contracts and cannot be built without one.

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IN SUMMARY

We have created a decentralised loan economy on the blockchain, whereby the irrefutable reputation of the individual as verifiable on the public ledger (blockchain) is combined with type and terms of collateral to create a bid and ask economy setting the interest and terms of loans.

This is true decentralised finance. A traditional financial loan is inflexible and inaccessible to most people on earth. Blockchain has proven that there is a working use case in decentralising such financial services.

However, blockchain also comes with anonymity and trust-less, limiting the types of loans that can be issued, because in reality, some people are more likely to pay back a loan than others.

Trust and reputation still matters. DeFi For You.™ (#DFY) solves this, by moving an irrefutable, verifiable reputation system onto the blockchain and tying it together with the decentralised finance that during 2020 has become a massive industry worldwide.

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BUILT ON BINANCE© SMART CHAIN™

DeFi For You.™ has chosen to implement our protocol and smart contract on Binance Smart Chain, BSC.

BSC has the following characteristics:

• Compatible with the Ethereum Virtual Machine (EVM) and the Ethereum programming language Solidity, which opens to the largest ecosystem of developers, libraries, tools and know-how.

• Faster, Cheaper and better scalability than Ethereum because it relies on a variant of Proof-of-Stake called Proof of Staked Authority (PoSA) where there are a limited number of validators (up to 21) but anyone can stake BNB to become a validator.

• Blocktime 3-5 seconds

• Uses BNB for gas

Opponents of BSC could claim Binance Smart Chain it is less decentralised than Ethereum, but in our opinion it is decentralised enough and because of the higher speed, lower cost and better scalability, it works.

If we bring hundreds of millions of new users onto Ethereum with this application, Ethereum of today won’t work. While there are excellent improvements coming in ETH2.0, and ETH2 Phase 1 is soon here, many of the other improvements are still years away.

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We are not here to win a philosophical argument but to build a working product that provides real world value to millions or even billions of people and we can’t risk building that on a platform that might not scale to handle it in the timeframe we need it.

BSC also has other benefits, e.g. the DFY BEP20 token could also be paired with a corresponding BEP2 token on the Binance Chain BC, where sub second block finality is accessible.

BC adds the following key characteristic:

• Blocktime <1 second

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OUR IMPLEMENTATION

DFY Token Phase 1, BSC-BC Cross Chain

The DFY token implements the following requirements:

• The token is issued as a BEP20 and BEP2 Cross-Chain compatible token on the Binance Smart Chain (BSC) blockchain and on the Binance Chain (BC) blockchain.

BEP20 BSC Domain:

• Public token tracker, BSC: https://bscscan.com/token/0xd98560689c6e748dc37bc410b4d3096b1aa3d8c2

• Contract address: 0xD98560689C6e748DC37bc410B4d3096B1aA3D8C2

• Symbol: DFY

• Decimals: 18

• Max supply: 1,000,000,000 - in total BEP20+BEP2

• Initial supply: 1,000,000,000

• Additional minting possible in smart contract: No

• Initial circulating supply: 350,000,000

• The DFY phase 1 token code is based on the much trusted-

and-tried Solidity ERC20 template of of https://github.com/vittominacori adopted for BEP20.

• The DFY phase 1 token is open source available on https://github.com/defi-vn

• In a previous iteration, the team built the token as an ERC20 token on Ethereum, before migrating to BSC. Users received the equal number of DFY tokens by airdrop.

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BEP2 BC Domain

• Public token tracker: https://explorer.binance.org/asset/DFY-EA0

• Symbol: DFY

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• Additional minting possible in smart contract: No

Take note of the “Cross-Chain” badge on the first public token tracker link above. Each tokens can at any point of time exist either as a BEP20 token on the Binance Smart Chain, BSC or as a BEP2 token on the Binance Chain, BC (but not at the same time).

The Cross Chain capability enables the token to take advantage of both the EVM smart contract code execution on BSC and the 1 second block time of BC. Users can easily convert between the two modes inside e.g. the Trust Wallet app in an easy-to-use GUI and can easily keep some of the tokens in BEP20 BSC space and some tokens in BEP2 BC space, within the same wallet.

For the technically inclined, the mechanics of the conversion between BEP20 and BEP2

can be monitored for the ecosystem here:

BEP20 BSC Token Hub:

https://bscscan.com/address/0x0000000000000000000000000000000000001004

For example under:

https://bscscan.com/token/0xd98560689c6e748dc37bc410b4d3096b1aa3d8c2#balances

Take note of the holder "BSC: Token Hub". That is the system contract that hold tokens sent to BEP2. It is also from where BEP20 tokens will be returned when a user converts from BEP2 back to BEP20.

Custom Token Functions DFY Token Phase 2 Reputation DeFi Loan - PAWN Use Case

This set of requirements creates a decentralised loan economy on the blockchain, whereby the irrefutable reputation of the individual as verifiable on the public ledger

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(blockchain) is combined with type and terms of collateral to create a bid and ask economy setting the interest and terms of the loan.

DF.301 - All custom token functions for the DeFi Loan - Pawn Use Case shall be issued in Solidity on the Binance Smart Chain blockchain.

DF.302 - Revisions of the smart contract code shall be enabled using the Upgrades Plugin from OpenZeppelins, https://github.com/OpenZeppelin/openzeppelin-upgrades

DF.303 - The custom functions for the DeFi Loan - Pawn Use Case shall initially be built as a separate smart contract revision on TestNet.

DF.304 - Following a period of stability and active usage, the separate smart contract for DeFi Loan - Pawn Use Case can be merged with the DFY BEP20 token, following a migration procedure to be exactly defined at a later date.

DF.305 - The smart contract shall have a function for issuing a Collateral Proposition, whereby the customer oﬀers an item as collateral for a loan, recorded on the blockchain.

DF.306 - The smart contract shall have a function for responding to a Collateral Proposition with a Loan Oﬀer, whereby a loan provider oﬀers conditions for the loan. Conditions shall include as minimum: Collateral Reference, Collateral Type, Interest, Duration. The loan provider will typically take the reputation value of the prospective customer into account. It is up to the loan provider what algorithm to use based on that input and other parameters, meaning oﬀers to the same collateral propositions from diﬀerent loan providers will typically vary.

DF.307 - The smart contract shall have a function for accepting a Loan Oﬀer, whereby the customer accepts the Loan Oﬀers. After acceptance two things shall happen as a

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single transaction, the collateral oﬀered shall be locked, and the loan shall be issued in cryptocurrency.

DF.308 - The collateral can be a physical item and the data stored on the blockchain is a legally binding agreement. It is up to the loan provider to set the terms of the loan, taking aspects such as default risk and ability to enforce the agreement into account. Typically the ability for the loan provider to collect the collateral could be uncertain, hence a higher interest loan could potentially be oﬀered.

DF.309 - The collateral can be a physical item and the customer needs to deposit the item at a designated partner facility. The data stored on the blockchain in this use case will be the deposit slip and the agreement. It is up to the loan provider to set the terms of the loan, taking aspects such as default risk and ability to enforce the agreement into account. Typically the ability for the loan provider to collect the collateral would be good in this use case, hence a lower interest could potentially be oﬀered.

DF.310 - The collateral can be a legally binding transfer, such as transfer of car or property ownership to the loan provider, whereby the data stored on the blockchain is a legally binding agreement. It is up to the loan provider to set the terms of the loan, taking aspects such as default risk and ability to enforce the agreement into account. Typically the ability for the loan provider to collect the collateral would be good in this use case, hence a lower interest could potentially be oﬀered.

DF.311 - The smart contract shall have a function for repayment of the loan, in part or full. If repaid in full, the transaction is ended and the reputation system is updated accordingly.

DF.312 - The smart contract shall have a function for handling loan defaults, at which point the transaction is ended and the reputation system is updated accordingly.

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DF.313 - A reputation system for loan providers shall be built on the blockchain, where anyone can validate its validity. The reputation system shall be centrally visible for all DeFi Loan use case flows.

DF.314 - A reputation system for customers shall be built on the blockchain, where anyone can validate the validity of the credibility score on the public blockchain. The reputation system shall be centrally visible for all DeFi Loan use case flows.

DF.315 - To qualify as a loan provider, a minimum number of DFY tokens needs to be held in the loan provider’s wallet connected to the person’s reputation score.

DF.316 - A percent of profits generated by the loan provider is deducted by the smart contract as a “gas fee” to run the decentralised DeFi For You.™ network whereby the smart contract uses these funds to perform an automated buy-back and burn of DFY tokens from the (at the time) dominating “UniSwap type” decentralised liquidity provider for BSC20 tokens. This creates a long term value from holding DFY tokens.

Custom Token Functions - Reputation DeFi Loan

Cryptocurrency Use Case

This set of requirements creates a decentralised loan economy on the blockchain, whereby the irrefutable reputation of the individual as verifiable on the public ledger (blockchain) is combined with cryptocurrency collateral to create a bid and ask economy setting the interest and terms of the loan.

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DF.401 - All custom token functions for the DeFi Loan - Cryptocurrency Use Case shall be issued in Solidity on the Binance Smart Chain blockchain.

DF.402 - Revisions of the smart contract code shall be enabled using the Upgrades Plugin from OpenZeppelins, https://github.com/OpenZeppelin/openzeppelin-upgrades

DF.403 - The custom functions for the DeFi Loan - Cryptocurrency Use Case shall initially be built as a separate smart contract.

DF.404 - Following a period of stability and active usage, the separate smart contract for DeFi Loan - Cryptocurrency Use Case can be merged with the DFY BEP20 token, following a migration procedure to be defined at a later date.

DF.405 - The smart contract shall have a function for issuing a Collateral Proposition, whereby the customer oﬀers cryptocurrencies as collateral, recorded on the blockchain.

DF.406 - The smart contract shall have a function for responding to a Collateral Proposition with a Loan Oﬀer, whereby loan provider oﬀers conditions for the loan. Conditions shall include as minimum: (Over-)Collateralization ratio, Interest, Duration. The loan provider will typically take the reputation value of the prospective customer into account. It is up to the loan provider what algorithm to use based on that input and other parameters, meaning oﬀers to the same collateral propositions from diﬀerent loan providers will typically vary.

DF.407 - The smart contract shall have a function for accepting a Loan Oﬀer, whereby the customer accepts the Loan Oﬀers. After acceptance two things shall happen as a single transaction, the collateral oﬀered shall be locked, and the loan shall be issued in cryptocurrency.

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DF.408 - Any BEP20 compatible cryptocurrency shall be supported as collateral, including BEP20 wrapped Bitcoin.

DF.409 - A set of BEP20 compatible cryptocurrencies shall be available as loan currency, including BUSD, BEP20 wrapped Bitcoin and BNB.

DF.410 - The smart contract shall have a function for liquidating the cryptocurrency collateral based on the agreed collateralization and other terms.

DF.411 - The smart contract shall have a function for repayment of the loan, in part or full. If repaid in full, the transaction is ended and the reputation system is updated accordingly.

DF.412 - The smart contract shall have a function for handling loan defaults, at which point the transaction is ended and the reputation system is updated accordingly.

DF.413 - A reputation system for loan providers shall be built on the blockchain, where anyone can validate its validity. The reputation system shall be centrally visible for all DeFi Loan use case flows.

DF.414 - A reputation system for customers shall be built on the blockchain, where anyone can validate the validity of the credibility score on the public blockchain. The reputation system shall be centrally visible for all DeFi Loan use case flows.

DF.415 - To qualify as a loan provider, a minimum number of DFY tokens needs to be held in the loan provider’s wallet connected to the person’s reputation score.

DF.416 - A percent of profits generated by the loan provider is deducted by the smart contract as a “gas fee” to run the decentralised DeFi For You.™ network whereby the smart contract uses these funds to perform an automated buy-back and burn of DFY

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tokens from the (at the time) dominating “UniSwap type” decentralised liquidity provider for BSC20 tokens. This creates a long term value from holding DFY tokens.

The Access Gateway

The DFY smart contract and its token creates a decentralised economy. The DeFi For You.™ company or its founders does have any monopoly access to a public smart contract. On the contrary, we want to encourage more parties to create websites, apps and other gateways into this new decentralised economy.

We will simply build an open source reference interface in the form of a website accessing the decentralised smart contract, which other developers can use as template in creating their own frontend.

DF.501 - The reference interface shall oﬀer a search and alert function for loan providers to find Collateral Propositions published on the blockchain.

DF.502 - The reference interface shall oﬀer the loan providers the ability to publish a Loan Oﬀer on the blockchain in response to to a Collateral Proposition.

DF.503 - The reference interface shall oﬀer a search and alert function for customers to find Loan Oﬀers published on the blockchain issued in response to their Collateral Proposition.

DF.504 - The reference interface shall oﬀer a function to accept a specific Loan Oﬀer on the blockchain and thereby reject competing Loan Oﬀers.

DF.505 - The reference interface shall oﬀer functionality for informing both parties of a liquidation event on the blockchain.

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DF.506 - The reference interface shall oﬀer functionality for handling repayment of the loan, in part or full.

DF.507 - The reference interface shall oﬀer functionality for informing both parties of a loan default event on the blockchain.

DF.508 - The reputation of the loan provider shall be centrally visible on the reference interface for all DeFi Loan use case flows.

DF.509 - The reputation of the customer shall be centrally visible on the reference interface for all DeFi Loan use case flows.

DF.510 - The reference interface shall guide the loan provider through the process of depositing the required number of DFY tokens into the loan provider’s wallet connected to the person’s reputation score.

DF.511 - The reference interface shall oﬀer complete accounting per transaction, including the the buy-back and burn of DFY tokens contributed by the transaction.

DF.512 - The reference interface shall be released as open source code on GitHub.

DF.513 - The reference interface open source documentation shall describe how each of the custom token functions shall be accessed.

DF.514 - There shall be no proprietary codes or secrets in the reference implementation, meaning anyone shall be able to call decentralised economy smart contract functions directly for a new type of truly decentralised, credibility based, world-wide loan economy on the blockchain.

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Discussion on “Anonymized Reputation Systems with Zero Knowledge Proofs” - The First Real Application?

In his Endnotes on 2020, Vitalik Buterin wrote: “we're increasingly moving toward anonymized reputation systems with zero knowledge proofs” https://vitalik.ca/general/2020/12/28/endnotes.html

There has been a few discussion papers, articles and implementations on the topic of

reputation systems on blockchain over the years. A few notable are:

https://manishearth.github.io/blog/2016/08/14/fun-crypto-problem-designing-an-

anonymous-reputation-system/

https://ethresear.ch/t/anonymous-reputation-risking-and-burning/3926

https://github.com/barryWhiteHat/semaphore

https://eprint.iacr.org/2018/835.pdf

The central component of the Pawn / Loan system described and being implemented by the token is the anonymized reputation system.

It is a non-trivial problem to solve, but it is solvable, as the article authors above realized years ago. However, to our knowledge, it has not been put to real use yet. We hope DFY will make be the first application that takes this idea to its full potential and to scale.

We wish to make the continuous refinement and extension of the reputation related requirements a key community mission.

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