From 17cb47af3b7bcf1b474cf96e4e1b5b185cdd653a Mon Sep 17 00:00:00 2001 From: John Quid Date: Sat, 16 Dec 2023 13:17:13 +0200 Subject: [PATCH 1/4] Create quid.md --- applications/quid.md | 119 +++++++++++++++++++++++++++++++++++++++++++ 1 file changed, 119 insertions(+) create mode 100644 applications/quid.md diff --git a/applications/quid.md b/applications/quid.md new file mode 100644 index 00000000000..dadff0aabbb --- /dev/null +++ b/applications/quid.md @@ -0,0 +1,119 @@ +# 👁‍🗨U!D + +- **Team Name:** Quid Labs (quid.eth) +- **[Level](https://github.com/w3f/Grants-Program/tree/master#level_slider-levels):** 3 + +### Project Overview :page_facing_up: + +- Core [Diagram](https://imgur.com/a/pH2WKgm): stablecoin (QD) that starts out under-backed. No secondary token. + + - Because (БО) initial distribution ([!BO](https://github.com/QuidMint/iBO)) distributes future stablecoins at a discount. + +- !BO deposits are in tether, staying staked for a year (after year ends, mint at 90 LTV). + - Half of the tether is swapped for a PoS basket (starting with ETH and DOT). + +- QD holders can deposit their ERC20 into one or several implementations of the core protocol... + - ...or take on leveraged exposure therein (paying APR by bringing external liquidity, thus making QD backed over time). + - In the initial phase (until QD is backed) exposure comes from the depositors (no roundtrips against external venues). + +- Depositors can choose not to earn APY (simply staying insured). + - This way, they provide liquidity to the protocol, but APR and APY cancels out. + +- As per Kings 3:16-28, liquidations take [half](https://twitter.com/QuidMint/status/1735926977683406950) the borrower's initial collateral. + - If borrowers pay double APR they are still able to claim back the half. + - All the collateral accumulated on leverage (not owned by borrower to begin with) is claimed. +- There is no recovery mode (unlike Liquity), and absorption of losses is deferred. + - Until user decides to redeem their QD for underlying (only possible after 1yr). + - Until then, all P&L is in QD (and compounding is improved by taking in liquidations 1:1 debt against collat). + - Governance (weighted median voting for [SCR](https://www.risk.net/definition/solvency-capital-requirement-scr#:~:text=The%20solvency%20capital%20requirement%20is,the%20course%20of%20a%20year.)) is required to take profits. +- Positions close to liquidations are automatically shrunk (but only up 1.1 CR). + +### Ecosystem Fit + +- Who is your target audience (parachain/dapp/wallet/UI developers, designers, your own user base, some dapp's userbase, yourself)? + - All of the above. +- What need(s) does your project meet? + - Knowledge society with real community and educational memes. + - Fight Club meets DeFi, but no misogyny and way less bloody. +- How did you identify these needs? + - I liquidated my life savings...because it's really not about the money (it's about sending a message). +- Are there any other projects similar to yours in the Substrate / Polkadot / Kusama ecosystem? + - QU!D began as VIG on EOS, 4 years ago (C++)...before it reached >1M TVL, + - a team called Equilibrium was heavily "inspired" by our code. +- Are there any projects similar to yours in related ecosystems? + - THORchain, BUMP + +### Team :busts_in_silhouette: + +- **Contact Name:** John Quid (pseudonym) +- **Contact Email:** john@quid.io +- **Website:** quid.io + +### Legal Structure + +- **Registered Address:** PO Box 144, 3119 9 Forum Lane, Camana Bay, + - George Town, Grand Cayman, KY1-9006, Cayman Islands +- **Registered Legal Entity:** Quid Labs + +### Team's experience + +Made contributions to Bancor Protocol and...Liquity. + +### Team Code Repos + +- https://github.com/quidmint + +- Research diary (aka Cossak's Codex): http://quips.wtf + +### Development Roadmap :nut_and_bolt: + +- **Total Estimated Duration:** 9 months 🐣 +- **Full-Time Equivalent (FTE):** 2-3 FTE +- **Total Costs:** 80,000 USD + +### Milestone 1 - Frontend + +- **Estimated duration:** 2-3 months +- **FTE:** 2 +- **Costs:** 15,000 USD + +Finalize frontend (with DOT intgration in addition to existing ETH). UX with 3 main faders: +- cross-fader between long and short: + - and one volume fader for each (one for long, one for short); +- Two P&L buttons: + - take profits and withdraw is activated on a certain date +- Two voting sliders for each collateral type +- Analytics dashboard showing aggregate stats and individual + - risk-adjusted returns; + - most recently liquidated; + - top borrowers in terms of P&L, etc. + +### Milestone 2 - Core development + +- **Estimated Duration:** 4-6 months +- **FTE:** 2 +- **Costs:** 35,000 USD + +| Number | Deliverable | Specification | +| -----: | ----------- | ------------- | +| 0. | Testing | Our existing rust code (ported to ink!) must have unit-test coverage (min. 50%) to ensure functionality and robustness. In the guide we will describe how to run these tests | +| 1. | ink! sub-module | We will use OpenBrush to create a way for QD from Ethereum to land inside the core protocol contract (ink! so that it can run in multiple pallettes). +| 2. | Oracle module | Feeds price data into the contract along with annualized vol from taapi.com | +| 3. | Watcher Bot | Similar to Solana's Serum crankshaft script...monitors positions across chains for liquidation. | +| 4. | External Venues | QU!D protocol runs as a closed loop ecosystem temporarily, but integration at the contract level with orderbooks or AMMs is an eventual necessity. | + +### Milestone 3 - Onboard users (cross-chain) and expand scope + +- **Estimated Duration:** 3-4 months +- **FTE:** 2 +- **Costs:** 30,000 USD + +- Update UX to include push notifications based on more TA Oracle feeds (allows semi-automated trading decisions) + - Signal over-bought / over-sold based on a handful of technical analysis indicators + - RSI (+ stochastic), MACD, SMA, and Bollinger Bands +- Cross-pallet communication for ink! if this is possible. +- Allowing multiple implementations to enhance each other for portfolio diversity (credit supply chain optimisation via broader execution), + - instead of passing staking derivatives back and forth (with redundant token instances on each chain) + - experiment communicating, instead, by changing the beneficiaries of options. + - experiment with a more advanced stress testing model for options pricing than the existing implementation + From 937ab89237d27625f4446570b06ff909e773504b Mon Sep 17 00:00:00 2001 From: John Quid Date: Sat, 16 Dec 2023 13:19:41 +0200 Subject: [PATCH 2/4] Update quid.md --- applications/quid.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/applications/quid.md b/applications/quid.md index dadff0aabbb..a5430ca944a 100644 --- a/applications/quid.md +++ b/applications/quid.md @@ -19,7 +19,7 @@ - Depositors can choose not to earn APY (simply staying insured). - This way, they provide liquidity to the protocol, but APR and APY cancels out. -- As per Kings 3:16-28, liquidations take [half](https://twitter.com/QuidMint/status/1735926977683406950) the borrower's initial collateral. +- As per [Kings](https://www.youtube.com/clip/UgkxdnVd64u0q6nPNlaVrG36GLug-5MHKyCc) 3:16-28, liquidations take [half](https://twitter.com/QuidMint/status/1735926977683406950) the borrower's initial collateral. - If borrowers pay double APR they are still able to claim back the half. - All the collateral accumulated on leverage (not owned by borrower to begin with) is claimed. - There is no recovery mode (unlike Liquity), and absorption of losses is deferred. From acad11667c8d57a3372acf66ef9d996813774f2c Mon Sep 17 00:00:00 2001 From: John Quid Date: Sat, 13 Jan 2024 13:52:42 +0200 Subject: [PATCH 3/4] Added details --- applications/quid.md | 282 ++++++++++++++++++++++++++++++------------- 1 file changed, 196 insertions(+), 86 deletions(-) diff --git a/applications/quid.md b/applications/quid.md index a5430ca944a..cac4faaecf4 100644 --- a/applications/quid.md +++ b/applications/quid.md @@ -1,119 +1,229 @@ -# 👁‍🗨U!D +# 👁‍🗨U!D -- **Team Name:** Quid Labs (quid.eth) -- **[Level](https://github.com/w3f/Grants-Program/tree/master#level_slider-levels):** 3 - -### Project Overview :page_facing_up: +### Legal Structure -- Core [Diagram](https://imgur.com/a/pH2WKgm): stablecoin (QD) that starts out under-backed. No secondary token. +- **Registered Address:** PO Box **144**, 3119 9 Forum Lane, Camana Bay, + - George Town, Grand Cayman, KY1-9006, Cayman Islands +- **Registered Legal Entities:** + - (Dao) QuidMint Foundation + - (R&D) Quid Labs (owns QU!D Ltd) +- **Liabilities:** + - [NEAR](https://etherscan.io/tx/0xa3e778f0053e07bc5a955a1bafaf5de625494f9bd7516c6264305b309b756a93) Foundation +- **Assets:** + - [Immutable](https://etherscan.io/tx/0x2f6b05e1e60dba915f0ba83fee04974fdcce97274e98845a826743e1e9fad2cd) Foundation - - Because (БО) initial distribution ([!BO](https://github.com/QuidMint/iBO)) distributes future stablecoins at a discount. +In good standing under common law tradition, "threatened by shadows at night, and exposed in the light," Dao is a non-profit that aims to accomplish its humanitarian mission by promoting (through informative and entertaining means) certain digital intellectual property, including (but not limited to) the efforts of its wholly owned subsi*diary* (R&D). IP is the product of multi-talented volunteer labor (mostly in-house, at-cost basis, rarely sub-contracted), sponsored (partly) through cooperation agreements between Daos (foundations) with similar mission statements to that of QuidMint: -- !BO deposits are in tether, staying staked for a year (after year ends, mint at 90 LTV). - - Half of the tether is swapped for a PoS basket (starting with ETH and DOT). +- building general public's wealth of knowledge to raise the bar for conscious living (both online and offline) in game-theoretic environments "whose principal architects are merchants and manufacturers" +- developing greater resilience and self-reliance (“shallow men believe in luck; strong men believe in cause and effect”) through spreading self-awareness at scale: + - increasing understanding of the principles (chains of causality) shaping both the individual self and the collective (both long term and short term) + - differentiating between root-causes and symptoms in struggling against the 7 social sins (a list put together by Gandhi before his assassination) while standing for the virtues of wisdom, sincerity, benevolence, and courage (in accordance with Miyamoto’s 9 precepts) +- the medium for the message involves believing in equal-opportunity empowerment through digital markets + - leveling up emotional regulation (stress management) with accessible, hands-on training (tempering) by exposure therapy to real price volatility + - or other, more creatively-themed *batsu gemu* (penalty games) with competency-based mediation -- QD holders can deposit their ERC20 into one or several implementations of the core protocol... - - ...or take on leveraged exposure therein (paying APR by bringing external liquidity, thus making QD backed over time). - - In the initial phase (until QD is backed) exposure comes from the depositors (no roundtrips against external venues). +Without marketing to general public, QU!D Ltd brings IP from Quid Labs into production, delivering usable tokenomics-as-a-service (for parachains, among other deployment targets) by passively maintaining decentralised infrastructure (smart contracts like **!BO**, eventually interfacing with other permissionless protocols through the utility token QD). Independently of the proposal’s approval, Senator Peirce’s SAFE Harbor provides clear guidance as to the definition of a utility token. -- Depositors can choose not to earn APY (simply staying insured). - - This way, they provide liquidity to the protocol, but APR and APY cancels out. +QU!D Ltd may raise operating capital by (OTC) selling QD tokens to accredited impact investors (8.8M for roughly $3M). 3.3M QD tokens are reserved for the R&D team (represent Daos' contributions), ensuring that the team is thoroughly incentivised to stay staked (and contributing) throughout 3 years before grace period ends, and real-world assessment begins (in regards to compliance, determining whether QD tokens meet certain definitions, are sufficiently decentralised, etc). "Empires try to capture and trap the user inside a walled garden; tools do their task but otherwise interoperate with a wider open ecosystem." -- As per [Kings](https://www.youtube.com/clip/UgkxdnVd64u0q6nPNlaVrG36GLug-5MHKyCc) 3:16-28, liquidations take [half](https://twitter.com/QuidMint/status/1735926977683406950) the borrower's initial collateral. - - If borrowers pay double APR they are still able to claim back the half. - - All the collateral accumulated on leverage (not owned by borrower to begin with) is claimed. -- There is no recovery mode (unlike Liquity), and absorption of losses is deferred. - - Until user decides to redeem their QD for underlying (only possible after 1yr). - - Until then, all P&L is in QD (and compounding is improved by taking in liquidations 1:1 debt against collat). - - Governance (weighted median voting for [SCR](https://www.risk.net/definition/solvency-capital-requirement-scr#:~:text=The%20solvency%20capital%20requirement%20is,the%20course%20of%20a%20year.)) is required to take profits. -- Positions close to liquidations are automatically shrunk (but only up 1.1 CR). +A popular software architecture principle: separation of concerns (or scope de-coupling) is also a core aspect of legal strategy (separation of liabilities). Minting and redemption of QD is done by **!BO** on Ethereum. All scope pertaining to leverage is handled by monolithic (singleton) implementations of the rest of the protocol (accommodating not only multiple chains, but multiple technology stacks in doing so). We vow to preserve scope parity (pun intended) between implementations. -### Ecosystem Fit +### R&D Team :busts_in_silhouette: -- Who is your target audience (parachain/dapp/wallet/UI developers, designers, your own user base, some dapp's userbase, yourself)? - - All of the above. -- What need(s) does your project meet? - - Knowledge society with real community and educational memes. - - Fight Club meets DeFi, but no misogyny and way less bloody. -- How did you identify these needs? - - I liquidated my life savings...because it's really not about the money (it's about sending a message). -- Are there any other projects similar to yours in the Substrate / Polkadot / Kusama ecosystem? - - QU!D began as VIG on EOS, 4 years ago (C++)...before it reached >1M TVL, - - a team called Equilibrium was heavily "inspired" by our code. -- Are there any projects similar to yours in related ecosystems? - - THORchain, BUMP - -### Team :busts_in_silhouette: - -- **Contact Name:** John Quid (pseudonym) -- **Contact Email:** john@quid.io -- **Website:** quid.io - -### Legal Structure - -- **Registered Address:** PO Box 144, 3119 9 Forum Lane, Camana Bay, - - George Town, Grand Cayman, KY1-9006, Cayman Islands -- **Registered Legal Entity:** Quid Labs +- **Team name:** Quid Labs (quid.eth) +- **[Level](https://github.com/w3f/Grants-Program/tree/master#level_slider-levels):** 3 +- **Website:** http://quid.io +- **Research diary:** http://quips.wtf +- **Software:** http://github.com/QuidLabs +- **Podcast:** https://www.youtube.com/@QuidMint -### Team's experience +Mutant N.I.N.J.A ~~Turtles~~ Drones 🐝 (not the management team) +- **Blame it all on:** [Rico](https://github.com/ricktobacco) +- **Sr. Reactooor:** [Pedro](https://github.com/pedrosimao) +- **EVM Samurai:** [Dom](https://lnk.bio/hacker-dom) +- **Rust a far eye:** [Mike](https://www.linkedin.com/in/michael-zaneri-99354897/) +- **Joystreamer:** [Akon](https://github.com/iorveth) -Made contributions to Bancor Protocol and...Liquity. +### Team's experience -### Team Code Repos +Before Euromaidan (when many businesses experienced hostile takeovers), Ukraine had one of the world's first (if not *the* first) central bank-tethered digital currencies, issued by a licensed company whose EIN was 36**42**51**42** (without the use of DLT). If not for political tensions, it was on its way towards gathering enough attention for a shared eMoney standard between central banks (in one sense or another, not unlike the "bancor" conceptualised by Keynes in 1942). Having interned as a paralegal in the aforementioned company, but before working at Bancor (Israeli version), Rico was the founding engineer of the 1st protocol in DeFi-based structured products. -- https://github.com/quidmint +Later, Dom joined Rico in auditing THOR and bZx at CertiK, before they both took turns working on side-projects at Liquity (fuzzing and DSproxy, respectively). The rest of the team met through either [42](http://42.fr) or online hackathons. What do all the team members have in common? We try to live with intention, "burning for the ancient heavenly connection," and "wondering who you are on a Sunday morning...chose life, chose a career," not "hack the planet," but, "chacun sa mille-fa...aujourd'hui ça se passe comme ça." -- Research diary (aka Cossak's Codex): http://quips.wtf +### Ecosystem Fit -### Development Roadmap :nut_and_bolt: +Our industry is one of paradoxes, mixed signals, and wires getting crossed...strangeness seeking familiarity...repression seeking freedom...chaos...seeking order. We've had seasons of popular cruft coming from all sides, nearly caught fire like ~~Prometheus~~ poplar fluff...standardise this, analyse that, another one bites the rust...most crypto projects try to build their own version of Turing-completeness for a particular area...the "all-in-one" solution, or "one-stop shop"...perhaps [something](https://hackmd.io/@sbacha/dsp-draft1) or [another](https://twitter.com/eulerfinance/status/1745433647078134029) that is decentralised in production, but centralised logically...bridging siloed liquidity (forging fragmentation), keeping secrets while upholding transparency for downstream members (in the software supply chain) to wrap around it (thereby extracting the legal risk). All in good faith, as part of a "counter-culture" that accepts "there is no free lunch." -- **Total Estimated Duration:** 9 months 🐣 -- **Full-Time Equivalent (FTE):** 2-3 FTE -- **Total Costs:** 80,000 USD +- Who is your target audience (parachain/dapp/wallet/UI developers, designers, your own user base, some dapp's userbase, yourself)? + - All of the above...but there's more to it... + - QU!D is incentivised to integrate with as many merchants as possible (not only crypto-native marketplaces): the more places there are to pay in QD, the higher "velocity of money" (based on Bernoulli's principle), meaning the less pressure there is for participants to withdraw. + - Potentially a huge segment of QU!D's future depositors, payment processors (PPs) enable merchants to pay their COGS (e.g. suppliers) in fiat without necessarily having to charge customers in fiat, or perform any currency conversion themselves (extra overhead). + - Being a PP is a bit like being an oracle: a common denominator that makes things work which otherwise wouldn't if it weren't in the middle. For merchants this can bring a wider audience...while reducing disputes...traditionally, they are subject to a large % of false-positives (either the incentives aren't there for quality detective work, or there's not enough data points). These affect not only a merchant's bottom line, but in certain cases also their fulfillment schedules (with cascading effects). + - For QD token holders, PPs are able to serve as a proxy for redemption (since QD is irredeemable for a certain period of time), wherein the point of sale represents an oracle data request (how much crypto is needed to buy a certain physical good or service). Interestingly, said request is "secured" (as in consensus about its accuracy) not by staking LINK, but by the actual delivery of said good or service (provided there was no dispute). + +- What need(s) does your project meet? + - Balaji wants a keto-kosher network state? DeFi traders want a [ketones](https://www.youtube.com/clip/UgkxWU6iSg_rZvLiXixrLOOYXoZYRHddd4w6)-kosher liquidation engine for networked denominations. + - Most projects are trying to meet the same need that was solved early on in crypto's history by tether (stable bridging), only for differing audiences and through varied means. + - Though there are regulatory barriers to competition in the PP mode of operations, it's still a race to the bottom (the margins are low, requiring contenders to chase monopoly status in their niche for maximum throughput in order to survive). To alleviate the strain of this race, PPs using QU!D may gain upsell potential (extra revenue sources) with the merchants they serve: + - Product placement (i.e. targeting, reaching more customers of a certain kind) and flexbility in loyalty bonuses: + - e.g. micro-lottery...merchants pledge a small portion of their revenues, and consumers also pay a small monthly subscription for a chance to win NFT receipts with QD cashback coupons (discounts realisable through future spending with any participating merchant, paying a % back to the originator of the receipt). + - Customer acquisition has always been intertwined with the main problem merchants face: idle inventory as the implicit cost of not acquiring a customer. + +- How did you identify these needs? + - Spending roughly a bill a day as a digital nomad (while only being able to use cash and crypto), one quickly finds that there aren't many Travalas, and the few options they do accommodate turn out more expensive than they should be (because there is little competition, both in terms of PPs, and the quantity of merchants connected to them). + - Flipping digital assets inevitably puts one through the *Heart of Darkness*, where “your strength [may be] an accident arising from the weakness of others,” or vice versa. Can't have better traders without better thinkers; can't have better thinkers without better research; better research requires a knowledge society based on [experiential](https://www.youtube.com/clip/UgkxZXpU7l8kQGjykGLBo4HY682InwTf0-ut) compassion: "the way in is the way ~~out~~ [Aut](https://docs.aut.id/v2/intro/what-is-aut)" (liquidation). One does not simply walk into...*DeFi*ght Club...without buyer's remorse and zero-tolerance, placing solidarity over Solidity. Tunnel vision can take you there…myopically seeing only a micro-view of the markets (through TA) while losing sight of the big picture... + - ...as a result, getting liquidated outta half a million debt position (the research [diary](https://www.instagram.com/p/C0Qe8vMOGHH/) is full of links, but nowhere close to half of Balaji's half-apologist literature). Those who are liquidated, and not only recover, but demonstrate an improved track record…will achieve a level of seniority in the Dao (this grants them the authority to mentor others). + +- Are there any other projects similar to yours in the Substrate / Polkadot / Kusama ecosystem? + - "Teardrop on the fire of a confession:” QU!D owes much of its foundational design to [VIG](https://vigor.ai/). The PoC on mainnet reached 7 figures TVL in 2020, inspiring a parachain called Equilibrium...not to throw any shade on their money tree (after all, that would only discredit our seeds). + - Some [projects](https://forum.polkadot.network/t/revenue-sharing-usd-stablecoin-proposal/5234/6) want to give *even more* power to Blackrock... +- Are there any projects similar to yours in related ecosystems? + - "I put my key, you put your key in...some say I'm ruthless, some say I'm" grimoire than THOR’s wizards of Oz…another one is BUMP... + - Liquity was also inspired by VIG's [socialised](https://www.youtube.com/clip/UgkxOMAUJfrx-_ABwnargyEURpPygXEXJ_d9) liquidations, but optimised the implementation to use less procedural calls. + - VIG, in turn, was inspired by tradFi capital structures (e.g. CDOs): "it's almost dry" can refer to a [painting](https://www.youtube.com/clip/UgkxahxDBVmacY0eM6rEyLYQCWgT_EOeg-9A) or a [champagne](https://www.youtube.com/clip/UgkxembxhMdjNasxjXBvGmIs1ceYD9kBGdkm) thing: + - In other words, if you don't stay above water...you get wet! To make liquidated debt (or anything) dry quickly: spread it thinly over a large area. + +### Project Overview :page_facing_up: + +To each their own superstition…our core research questions are about [superconductivity](https://twitter.com/QuidMint/status/1740516508852465976) (frictionless debt transfer) and superposition…where debit and credit might become non-binary…existing simultaneously on a spectrum (Ctrl+F "metaxy" in research diary). Let's start with some 1st principles…"in the beginning was the" number…though..."not everything that counts can be counted, and not everything that can be counted counts." Biology’s roots in chemistry and physics also reveal themselves in financial ideology. Osteopathy is to finance as medicine is to economics’ double-entry *instrumentos de quidados Medici*. + +*Le cœur veut ce qu'id veut*…if an eye for an eye will leave the whole world blind…then the apple of my eye, *quid pro quo*, will make the whole world owe. There's two ways to transfer (in rust)...move or borrow. Most value is borrowed, (e.g. our genome). The first debt most of us owe is for the milk we drank as newborns. "*Moloch*o" means milk in 🇺🇦. In his famous *Howl*, Ginzburg speaks of "Moloch whose soul is electricity and banks! whose fate is a cloud of [sexless](https://twitter.com/QuidMint/status/1742534956016898407) hydrogen." Water forms hydrogen bonds because the oxygen side is more negative than the side that has the hydrogens (water is a polar molecule). So bonds form due to what's called a double coincidence of wants with other molecules that have similar areas of different charges. This is the basis of all matching, whether that's limit orders or cells in organs. + +"Sexless", from the *Howl* quote, means neutral (as in delta-netural, a necessary quality for superconductivity)...neither negatively charged, nor positively. The princples of Burning Man use the word "radical" twice. When you add oxygen to a compound, you lose an electron (creating a free radical, whose overproduction leads to...de-pegging). Unpaired electrons are like floating liabilities in QU!D's risk budget (they haven't been asigned to anyone's balance sheet yet). Anti-oxidants donate electrons to make things more stable...but when losing charge, they need to *borrow* it from other anti-oxidants to make things more stable. + +Compressed charge is electric pressure (voltage)...it gets things moving in the system. When there is a shocking release of it (liquidation)...one freezes up inside while melting at the same time, from an explosive flash ⚡️ of *colpi di fulmine* that takes the breath away..."Clear!" is what they yell in the military when an explosion is imminent, or when defibrilating someone. Clearing is related to crystallisation: with sugars and fats this is about purification, and in accounting...it's about netting a position without closing it. Let's make it rain? Pink Floyd said money’s a gas, we call it hail (our yellow paper is a *hielo* paper)...applying scientific analogies and empirical techniques to reason about it like OSMOsis Jones (because money is rooted in tradition and storytelling like a great cartoon, though it inherits many characteristics found in nature). + +- QD tokens get bootstrapped by starting under-backed (worth a bit less than 1 USD, without aiming to be worth more). The tokenomics support QD’s supply becoming fully backed (gradually)…**without** the traditional usage of a secondary token (e.g. MKR or LQTY), sharing the purist strategy of both Fuel.network and BitcoinComputer.io + +- If RAI is a "wrapped USD perpetual swap," then QD is used in a...sort of hedge wrapper where the interest rate is also baked into the price of the synthetic, but instead of target price there is a target collateralisation level (controlled by governance). QD becomes more and more backed every **8hr**, and with each liquidation (in order to liquidate anyone, the bot needs to crystallise everyone). + - Instead of earning extra APY, crypto depositors may choose a configuration that provides impermanent loss protection. This is effectively minimum (1x) leverage (not speculative in nature…i.e. delta neutral)… + - …through a *liminal* option: upon withdrawal, if the deposit is worth less than what it was (when deposited)…it’s executed as a put option. In the opposite situation, if the deposit is worth more…it’s executed as a call. Meanwhile (prior to execution, or withdrawal) it’s neither one nor the other (aka bardo). + - these are not *bona fide* options contracts in an order book (somewhere like Deribit)...it’s peer-to-pool, (a simulation in the same sense that AMMs simulate spot markets). + +- How can we set the initial price of a token to a non-zero value? One (imperfect) way to value something…is based on what it costs... + - The cost of using fiat: having to pay tax. The cost of using Ethereum: having to pay [gas](https://twitter.com/QuidMint/status/1740516508852465976). They both subsidise security. + - Following this line of circular reasoning, QU!D is a (more narrowly defined, or specialised) system of rules (rewards and penalties) for protection / insurance. + - There might be an implicit perverse incentive (if one may call it that): volatility (or war) must never become a permanent thing of the past in order to justify the need for systems of protection in the first place. + - The genesis [event](https://www.youtube.com/clip/Ugkx0J_rqYLiVOR4MYAtxJzwCFOl7YJmIuPF) for encapsulating these rules (using QD) was the first liquidation on the protocol's books (kickstarting the price at 22 cents). + - Most projects airdrop a free supply of tokens (at least to their founders). We paid for ours (proof of burn, not unlike PoW), so that the book value of our asset (IP) could be rooted in hard facts (adding more realism than what most fresh projects do, which is simply positive affirmations). + - "emit yofee" translated...means "truth and beauty" in Hebrew (22 letters in the alphabet) + - It happened on May 11th. Astronomically, ✨M11 is the wild 🦆 aka 🛡 S.H.I.E.L.D cluster... + - 11% of [revenue](https://github.com/QuidLabs/iBO/blob/main/contracts/QD.sol#L174) goes to the fight for peace. + - 11% of QD will be set aside for warm greetings to ["hi buddha"](https://peace-sanctuary.givingcircles.io/) (means “let it be” in 🇺🇦). + - Dao will vote for new beneficiaries in the future, when, to quote a line from the movie *Jaws*, “we’re gonna need a [bigger](https://github.com/QuidLabs/iBO/blob/main/contracts/QD.sol#L65) [**!BO**]” + +### [!ntermittent Bread ☯ffering](https://bit.ly/3q4tShS) (!BO) + +This section's heading links to an excell sheet. There is a pie chart tab. That represents the pizza our mutant n.i.n.j.a's are delivering. + +- Starting on Ash Wednesday !BO distributes QD tokens at a discount to their value as future stables, over the course of 54 days of Lent (ending on Buddha’s birthday) on Ethereum. The discount represents a negative borrowing rate (being paid to borrow, upfront, but over time...paying to borrow) "while still maintaining positive cashflow for the system," to quote Nikolai Mushegian: + - 1 year guarded launch / controlled growth "gives the system the ability to deal with 'squeezes' or 'hoarding' without the problem of," zero-bound (the point at which tools for stimulating the microeconomy may become ineffective), "in other words, 'principal + interest,' becomes just 'principal' in real time." + - Until QD has transitioned out of this guarded launch phase (while !BO is the only way to mint QD), exposure comes from only its own *SP* (no roundtrips against external venues for building leverage). + - This means that idle stakers' !BO gains may be impermanent if a large percentage of other stakers successfully (and consistently) take profit from a more active stance (taking on leverage). + +- QD supply from !BO is fed into the *SP*…immersed in the wonder of Dao, *empty* yet inexhaustible, dealing with whatever *LP* brings, and when debt overflows, *DP* is ready... + - *Empty* refers to *zero*…as in zero coupon bond…which is one analogy for describing (or one way of reasoning about) the credit conversion process (how QD from !BO becomes fully backed...aka $1 par value) in its own sort of redemption [center](https://en.wikipedia.org/wiki/Container-deposit_legislation). + - Whole Foods gives a $1 cash-back for *empty* glass milk bottles…in our case it takes a whole year to drink the Molocho, whereby at least half of all QD token holders should have a mildly speculative appetite to take on more than 1x leverage (but never more than 9x)...paying APR with external liquidity. So all QD token holders have exposure to volatility, but some have more than others. + +- QD may become fully backed thanks to its own (internal) 3 pools (driving the tokenomics): for exposure *L*everage*P*ool pays APR to *S*olvency*P*ool, on whose behalf the capital *D*eepening *P*ool executes knock-in options (and holds their premiums for *SP*, whose depositors write the options). + - Assets and liabilities travel between the pools (proceeds from liquidations also pass through DP), but all eventually end up in SP (as a sort of gravitational core). + - It's helpful to color-code the 3 pools. For that, we need a couple fragments of background knowledge: + - Printing money? Printer toner usually comes in 3 colors (excluding black, obtained from mixing all 3), and *collat*(eral) comes from the Greek word for glue (industrial glue is called *cyan*oacrylate). + - So if all LP collat comes from SP, then SP is cyan. LP positions aren't really neutral: + - technically until they turn red...they're sort of green by default (comes from mixing cyan and yellow, so LP is yellow). + - You get magenta by taking the green out of cyan (collat falling in value), and mixing it with red (but that red came from LP), so DP is orange (a mix of yellow and magenta). + - So there we have it: the colors of 🇺🇦, and of its first national revolution... + - Coincidentally, Ukrainians' most preferred type of milk is baked (it's slightly orange), simmering on low heat for **8hr**. + +- !BO on-boards both stable assets (preferentially, [rico](https://bank.dev/rico0_lite.html) or tether) and also… + - …directly accepts PoS certificates of deposit (including stETH and stDOT), or, if (for instance) plain ether is provided, the contract should handle wrapping it as wETH in a PoS CD. + - Without a credit enhancement (re-staking the CD to be leveraged as collateral), it is not really appropriate to call these “staking derivatives” on their own. + - !BO contract should re-balance these aggregated reserves to always be 49% stable..."don't think you are, know you are..." + - Building governance-free systems is like sleeping at the wheel while you let the Tesla drive instead. Centralisation can breed corruption, but the latter is not inherently a symptom of the former. The more decentralised an organisation, we often find that the more hardened are its shadow centers of power, coordinating secretly, and hardly overthrow-able. + - According to the DLT pathos, using centralised [stablecoins](https://medium.com/@tomerbariach/not-all-stablecoins-are-created-equal-b70f88cffb90) as treasury/reserve assets (for capitalisation) is deplorable. RAI's solution of holding only ETH could have an inherent fallacy: according to TruthLabs, entities linked to the CCP may hold up to 66% of all [ETH](https://dba.xyz/eth-is-not-ultrasound-money/) in circulation 🤷🏼‍♂️. The benefit of centralised stablecoins is that they may be held in special custodial arrangements, representing claims to treasury bills (or better yet, bullion). In the absence of such arrangements, some impression of fault-tolerance may be granted by holding multiple centralised issuers' stables in a Curve-style 3pool. + +- 8th ammendment: rather than multiply an over-leveraged borrower by zero...liquidations simply charge a year's worth of APR payments against a borrower's *initial* collateral. + - Only the collateral accumulated on leverage (not owned by borrower to begin with, in dollar terms) is reclaimed in full by DP (on behalf of SP's depositors). + - The same value of debt is assimilated by SP as the value of the collateral reclaimed (1:1). + - If borrowers pay double APR (for an additional option, on top of the required one for taking exposure) the liquidated balance sheet that would’ve been lost is held in escrow (rather than being immediately absorbed by depositors). APR payments must bring new, outside liquidity to the protocol (rather than being capitalized into the escrowed collateral). + - Borrower still has exposure to only to one direction (at a time). + - The escrow preserves what could be compared to "perfection rights" in exchange for slowly paying back the debt. + - Being double protected...is sort of like [Grace](https://twitter.com/QuidMint/status/1736212247104438564), or being protected *by* the law...and *from* it, at the same time! + - We see recovery mode (not the Apple feature) as a peer to peer debt restructuring utility for better-performing traders to pair up with borrowers that could use some mentoring. + - In Liquity, the concept of recovery mode is implemented as a bank run deterrent, though it may deteriorate into a predatory tug of war (depositors can keep withdrawing at the expense of borrowers until there are no borrowers left, from the least collateralised borrowers first). + - Absorption of losses (debt overflow above the value of liquidated collateral) is *deferred* until user redeems QD for underlying (only possible after 1yr). + - Until then, all P&L is in QD (and compounding is improved by taking in liquidations 1:1 debt against collat). + +- Governance action (weighted median voting for [SCR](https://www.risk.net/definition/solvency-capital-requirement-scr#:~:text=The%20solvency%20capital%20requirement%20is,the%20course%20of%20a%20year.) target) is mandatory. To make sure votes aren't stale, there is a check applied before a position may make any state updates (i.e. if stale, please vote and try again). Solvency contributions are accounted for as voting weights. + - The medianiser produces a result that affects a scale factor: up to 2x (1-100%), which is a heuristic for implied volatility, used for tilting APR calculation (akin to surge pricing). + +### Development Roadmap :nut_and_bolt: +- **Build Costs:** 144000 USD over 9 months 🐣 + - **GTM Costs** + - **QD to Mint**: 38M over 54 days + - **Maintenance:** 54000 USD + - Audit: ~38000 USD + - Contract deployment: 500 USD + - AWS, ENS, domain renewal: 500 USD + - Goldan Sachs (debt-financed 💻🖥📱): 5000 USD + - Counsel retainer & annual fees (Cayman & BVI): 10000 USD + - **R&D Costs:** 90000 USD + - **Full-Time Equivalent (FTE)**: 3 FTE ### Milestone 1 - Frontend -- **Estimated duration:** 2-3 months +- **Estimated duration:** 1-3 months - **FTE:** 2 - **Costs:** 15,000 USD -Finalize frontend (with DOT intgration in addition to existing ETH). UX with 3 main faders: -- cross-fader between long and short: - - and one volume fader for each (one for long, one for short); -- Two P&L buttons: - - take profits and withdraw is activated on a certain date -- Two voting sliders for each collateral type -- Analytics dashboard showing aggregate stats and individual - - risk-adjusted returns; - - most recently liquidated; - - top borrowers in terms of P&L, etc. +In the 1st milestone we prepare the QU!D frontend components to serve as a standalone web application (in Milestone 3 we will include optimisations for modular exportability to other frontends). + +| Number | Deliverable | Specification | +| -----: | ----------- | ------------- | +| **0a.** | License | GPLv3 Copyleft is the legal technique of granting certain freedoms over copies of copyrighted works with the requirement that the same rights be preserved in derivative works. | +| **0b.** | Documentation | We will provide both code comments and medical safety instructions (e.g. wash 🧼 hands like John 4:8, check for allergies or OFAC countries) for running the frontend instance (partially using dummy data for this milestone) as well as sanity checking the operability with some test transactions. | +| **0c.** | Testing and Testing Guide | Additional functionality produced as part of this milestone will be covered by unit tests to ensure functionality and robustness. In the guide, we will describe how to run these tests. | +| **0d.** | Docker | A [Dockerfile](https://github.com/QuidMint/ibo-app/blob/main/Dockerfile) is provided for deploying the functionality delivered in this milestone. | +| 0e. | First Podcast episode | Socratic seminar format (involving dialogue, or even debate) with one (or many) experienced interlocutor(s), exploring overarching themes inherited by the design space of collateralisation, with granular Q&A on how the core memes are interrelated (as well as juxtaposed in the research diary). | +| 1. | Withdrawal button | Redemption of QD should happen on Ethereum (L1 mainnet) after a certain date (as aforementioned, P&L is only in QD until said date). This functionality is an extension of our existing frontend (there’s a landing page at quid.io where the logo button takes you to ibo.quid.io, and after 54 days the same button will take you to app.quid.io). | +| 2. | Vertical volume faders | What the original iPod circle did for music players we'll do for...not USDC. There should be one input slider for long leverage, and one for short (all the way down by default). These inputs represent the multiplier (from 0 to 9x). The composition of these inputs will affect the net position (independently from each other, in other words, its not that decreasing one leg of leverage will simultaneously increase the opposite leg). The length and appearance of these (and other UI components) will have multiple versions (for responsive UX). | +| 3a. | Cross-fader for balance | This slider will represent how much of the user’s total holdings are deposited in LP, and how much are in SP (by default the whole balance is left…in SP). | +| 3b. | Cross-faders for voting | These slider inputs (125-225%) are for the solvency target (weighted median of the extent to which assets should exceed liabilities). Shorts and longs are treated as separate risk budgets, so there is one target for each (combining them is a worthy experiment, definitely better UX, though not necessarily optimal from an analytic standpoint). Minimum APR (for long or short) is 6-12%; the solvency target allows deriving a scale factor for this (up to 2x surge pricing). Eventually there will be solvency target voting sliders for each collateral type, as well as relative weights (should incentives be tilted to encourage depositing more of one collateral type than another). | +| 4. | Metrics | Fidgeting with sliders (outlined in above line items) does a real-time a recalculation of stats to aid decision-making. Once the user is happy with the values they see, they sign the actual transaction to lock in their decision on-chain. A side by side comparison of key metrics is presented: aggregated for all users (e.g. cumulative APR, per-collateral type, etc.), and from the perspective of the authenticated user (who’s currently logged in, e.g. individual risk-adjusted returns); see most recently liquidated (sorted by time or size); top borrowers in terms of P&L, volume, duration. It's uncommon to keep reliving a leveraged position for more than a month (6% annual is the same as 0,5% monthly, like the minimum one-time fee of “0% interest” platforms). | ### Milestone 2 - Core development -- **Estimated Duration:** 4-6 months -- **FTE:** 2 +- **Estimated Duration:** 3-5 months +- **FTE:** 3 - **Costs:** 35,000 USD +The delivery of this milestone is *not* contingent on the completion of milestone 1 first. Either one may be completed before the other, or both roughly at the same time. + | Number | Deliverable | Specification | | -----: | ----------- | ------------- | -| 0. | Testing | Our existing rust code (ported to ink!) must have unit-test coverage (min. 50%) to ensure functionality and robustness. In the guide we will describe how to run these tests | -| 1. | ink! sub-module | We will use OpenBrush to create a way for QD from Ethereum to land inside the core protocol contract (ink! so that it can run in multiple pallettes). -| 2. | Oracle module | Feeds price data into the contract along with annualized vol from taapi.com | -| 3. | Watcher Bot | Similar to Solana's Serum crankshaft script...monitors positions across chains for liquidation. | -| 4. | External Venues | QU!D protocol runs as a closed loop ecosystem temporarily, but integration at the contract level with orderbooks or AMMs is an eventual necessity. | +| **0a.** | License GPLv3 | Copyleft (same as previous milestone’s…of the public, by the public, for the public). | +| **0b.** | Documentation | We will provide both code comments and instructions for running the instance as well as sanity checking the operability with some test transactions. | +| **0c.** | Testing and tasting guide | Improve code comments and instructions for spinning up an instance of the backend logic as well as sanity checking the operability with some test transactions. The majority of our existing rust code (with modifications like changing floating point arithmetic to fixed-point for enabling compatibility with the ink! environment) must have unit-test coverage (min. 50%) to ensure functionality...with a special focus on stress testing and options pricing as the most intense piece of the scope (for short leverage it’s a call, for long it’s a put...same math, but gets arithmetically inverted). Options are no silver bullet, just one mental model for framing the APR problem. | +| 1. | Mobility sub-module | Core of implementation of the protocol should include a way for ERC20 QD on Ethereum to land inside the DOT ecosystem (using ink! in the interest of enabling QU!D protocol to meaningfully impact multiple parachains). | +| 2. | Oracle module | Choose Oracle provider (e.g. RedStone) depending on the parachain we partner with for this milestone to feed DOT price into the core protocol along with annualised volatility from taapi.com for the APR calculation (between 6-12% without surge pricing), which is not a flat rate but a floating rate based on stress-tested CVaR and other inputs in the Black Scholes formula. | +| 3a. | Event bus | In the research diary, this bot-like component is called, among other things, the *schnia* ("watch" in Hebrew). It will eventually read and write across chains, but in this milestone...it only applies to one implementation of the protocol. Similar to Solana's Serum crankshaft-turning off-chain script…triggers (using the `fetch_pledge` getter function, also used everywhere in the core contract) positions that are partially or wholly liquidatable, and in the act of doing so, it sets off (at least once every 8 hours) on-chain repricing of APR for all borrowers and assimilation of APY for all depositors. | +| 3b. | Liquidator | Liquidations happen when options are in-the-money (modifying debt/collat ratio moves the strike price along moneyness spectrum). Positions that are close to liquidation are shrunk (this means sell collateral to clear debt in the same function call), but there is an upper bound to this: only between the liquidation target (1.0 by default), and the minimum CR (1.1 by default). The scale factor (obtained from target SCR) can also affect the liquidation target and minimum CR (we will test this thoroughly as part of milestone 3). | +| 4. | Second Podcast episode | Demonstrate the extent of readiness of the frontend. The expectation is that the research diary would have been extended by at least 5 pages (37 total) over the course of this milestone (and the first one), so the podcast episode should highlight how the new content adds detail or otherwise reinforces the existing themes in the text. | ### Milestone 3 - Onboard users (cross-chain) and expand scope -- **Estimated Duration:** 3-4 months -- **FTE:** 2 -- **Costs:** 30,000 USD - -- Update UX to include push notifications based on more TA Oracle feeds (allows semi-automated trading decisions) - - Signal over-bought / over-sold based on a handful of technical analysis indicators - - RSI (+ stochastic), MACD, SMA, and Bollinger Bands -- Cross-pallet communication for ink! if this is possible. -- Allowing multiple implementations to enhance each other for portfolio diversity (credit supply chain optimisation via broader execution), - - instead of passing staking derivatives back and forth (with redundant token instances on each chain) - - experiment communicating, instead, by changing the beneficiaries of options. - - experiment with a more advanced stress testing model for options pricing than the existing implementation +- **Estimated Duration:** 6 months +- **FTE:** 3 +- **Costs:** 40,000 USD +The delivery of this milestone is contingent on the delivery of milestone 2 first (due to dependencies). Production-ready integrations with external venues require extensive test coverage, and completion of an audit (quote based on last year's evaluation by BlockSec, duration 1 month). + +| Number | Deliverable | Specification | +| -----: | ----------- | ------------- | +| **0a.** | License GPLv3 | Copyleft (same as previous milestones). | +| **0b.** | Documentation | We will provide both code comments and instructions for running all new instances as well as sanity checking the operability with some test transactions. | +| **0c.** | Testing and tasting guide | Core functions will be fully covered by comprehensive unit tests to ensure functionality and robustness. In the guide, we will describe how to run these tests. | +| 1. | Liquidity integrations | After deployment, the [ecosystem](https://twitter.com/Rainmaker1973/status/1732089932707942438) runs in a closed loop; oomph (momentum) is harnessed internally (temporarily). An absolute necessity for scaling (growing liquidity), building moat, and fault-tolerance: cross-pollinating value through interoperability with other singletons (AMMs like crocswap, or order books with on-chain settlement and a % incentive for multiple order matchers to run either off-chain or on dedicated rollups). | +| 2. | [OCDB](https://chromewebstore.google.com/detail/ocdb-open-collectible-dat/kchfgahfakmfagdikgdigacgjijfgaeh) for recent liquidations and UX personalisation | Advancing on the results from milestone 1 should include push notifications based on more data feeds (to better inform trading decisions). Over-bought / over-sold signaling can involve a handful of technical analysis indicators (e.g. RSI, MACD, SMA, BBands) as well as knowledge curation (pertaining to macro signals) tying back to the Dao. | +| 3. | Portfolio risk optimisation | Essentially multi-chain collateral, but **without** bridging staking derivatives around (creates redundant token instances on each chain), in order to allow multiple native implementations to enhance each other for collateralisation diversity. Explore plug-and-play [solutions](https://x.mypinata.cloud/ipfs/QmPdzor1xQ76XXb1RpWBu4s1TVZ4TshSBhiRWS1ZBwRfhM) (non-custodial only, e.g. web3auth.io) before resorting to hands-on implementation (leveraging existing [work](https://github.com/entropyxyz/synedrion)). To a large extent, the architecture of these solutions shares common elements with Oracle networks...so it could also become the basis for a fallback mechanism that complements line item 1 of this milestone (and #2 from the previous milestone). | +| 4. | 3rd podcast episode | In addition to any revelant discussion (depending on the future status of the industry, and the world at large), demonstrates live trading on app.quid.io (necessarily on mainnet), teaching / showcasing several battle-tested strategies (based on lessons from personal experience) with dialogue-based macro analysis (could be a compilation of several 15-20 minute slices, each dedicated to one swing trading session). | From 54cd22327cd1c4759baa9a2b4c70a667b4a77e7c Mon Sep 17 00:00:00 2001 From: John Quid Date: Sun, 14 Jan 2024 02:07:00 +0200 Subject: [PATCH 4/4] Update quid.md --- applications/quid.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/applications/quid.md b/applications/quid.md index cac4faaecf4..db22dd9d9c1 100644 --- a/applications/quid.md +++ b/applications/quid.md @@ -52,7 +52,7 @@ Later, Dom joined Rico in auditing THOR and bZx at CertiK, before they both took ### Ecosystem Fit -Our industry is one of paradoxes, mixed signals, and wires getting crossed...strangeness seeking familiarity...repression seeking freedom...chaos...seeking order. We've had seasons of popular cruft coming from all sides, nearly caught fire like ~~Prometheus~~ poplar fluff...standardise this, analyse that, another one bites the rust...most crypto projects try to build their own version of Turing-completeness for a particular area...the "all-in-one" solution, or "one-stop shop"...perhaps [something](https://hackmd.io/@sbacha/dsp-draft1) or [another](https://twitter.com/eulerfinance/status/1745433647078134029) that is decentralised in production, but centralised logically...bridging siloed liquidity (forging fragmentation), keeping secrets while upholding transparency for downstream members (in the software supply chain) to wrap around it (thereby extracting the legal risk). All in good faith, as part of a "counter-culture" that accepts "there is no free lunch." +"May God forgive us though we dwell inside a paradox." Our industry is one of mixed signals, and wires getting crossed...strangeness seeking familiarity...repression seeking freedom...chaos...seeking order. We've had seasons of popular cruft coming from all sides, nearly caught fire like ~~Prometheus~~ poplar fluff...standardise this, analyse that, another one bites the rust...most crypto projects try to build their own version of Turing-completeness for a particular area...the "all-in-one" solution, or "one-stop shop"...perhaps [something](https://hackmd.io/@sbacha/dsp-draft1) or [another](https://twitter.com/eulerfinance/status/1745433647078134029) that is decentralised in production, but centralised logically...bridging siloed liquidity (forging fragmentation), keeping secrets while upholding transparency for downstream members (in the software supply chain) to wrap around it (thereby extracting the legal risk). All in good faith, as part of a "counter-culture" that accepts "there is no free lunch." - Who is your target audience (parachain/dapp/wallet/UI developers, designers, your own user base, some dapp's userbase, yourself)? - All of the above...but there's more to it...