DEUS <> Liquiddriver Proposal

Lafachief
5 min readJan 26, 2022

ARRRRRRR a BRIBE IS COMING

The Proposal

Rationale/Justification

  • DEUS Finance team will “Bribe” LiquidDriver into voting in favour of their pool [DEUS-FTM] + [DEI-USDC]
  • The Bribe infrastructure is not yet rolled out, and thus the creation of an xDAO fund is needed.

DEUS Finance “Bribe”

The bribe is based on the LIP-004 FRAX Proposal and Votium analytics. On their Dashboard(https://llama.airforce/#/votium/rounds/9), protocols received on average $1.97 of emissions per $1 spent on bribes.

DEUS Finance’s offer is as follow

  • One week time-weighted average of spirit’s price to assess how much emissions in $ we bought through inSPIRIT votes
  • Once per week, DEUS will be sent to our fee distributor based on a rate of $0.5 Bribe / $1 of spirit emissions

Weekly pay is the norm and per the emissions/ inSPIRIT voting cycle.

Verbal Agreement

  • The goal of DEUS Finance is to initially reach a pool size of:
  • $10m on the [DEI/USDC]
  • $5m on the [DEUS/FTM]

LiquidDriver would allocate between XXXm to XXXm inSPIRIT votes to their boosted farms to help them achieve the targeted $5–10m in liquidity to start.

With the objective of reaching $15–20m later on.

  • LiquidDriver would also open a [DEUS-FTM] + [DEI-USDC] double reward pool on LiquidDriver to capture the revenue.

Benefits

  1. Allows the DAO to acquire a treasury balance between accumulating bribed $DEUS while generating yield redistribution to xLQDR holders.
  2. New partnership with a Synthetics protocol, offering hundreds of Synthetics on Fantom through Spiritswap [2]. We would be the first step of a long-term collaboration to put DEUS in front of the Synthetics scene on Fantom.

Before making any final decision feel free to discuss the proposal in the xDAO section of our discord http://discord.gg/LiquidDriver

About DEUS synthetics

Abstract

DEUS is building to become the first Infrastructure provider that enables developers to build, hedge, and create derivatives and offer them to anyone in the crypto community without any restrictions and minimal effort.

DEUS provides unlimited access to global markets.

DEI leverages fractionalized stablecoin technology to implement a highly scalable, algorithmic, on-chain money system to trade Synthetic assets.

The ultimate goal is to build out the infrastructure to provide bilateral derivatives OTC deals.

At this point, it will be possible to create any derivatives on DEUS with any amount of leverage, even enabling Interest Rate Swaps, the most significant financial market on the planet.

The current state of derivatives in crypto forces developers who understand financial markets to learn how to operate under the limits of blockchain technology.

In the traditional finance world, you have no technical limits, but you are forced to operate under regulation limits.

Either way, there are limits, and DEUS is here to lower the entry bars for both worlds.

Read more about DEUS

https://docs.deus.finance.

V3 — DEUS Bilateral Agreements

https://lafayettetabor.medium.com/deus-bilateral-agreements-6710f4f91122

released in a White paper which is set to be released in February.

The current state of the DEUS Project

Collateralization

All DEUS synthetic and derivative assets will always be traded against DEI, our protocol native fractional reserve stablecoin (fork of FRAX) that is partially backed by DEUS tokens and other trusted stablecoins.

Buying a synth, burns DEI.

Selling a synth mints DEI.

Minting undercollateralized DEI creates an arbitrage opportunity to refill the minting pools.

AMOs (automated market operators) take this arbitrage opportunity to rebalance the system.

To learn more about how the collateral of synthetic assets are managed read the Gitbook overview of the DEUS synchronizer.

https://docs.deus.finance/synchronizer/overview

Oracles

We leveraged the MUON Network to build an oracle that uses on-demand live price feeds.

It collects data, creates a threshold signature, and pushes it via user transactions to the chain in under 500 milliseconds.

Users pay gas fees, so there is no need to collect payments for the oracle from users.

This architectural design is currently not possible with any other oracle.

For comparison:

- Chainlink has a vast price deviation of ~0.5%, enabling frontrunners.

- Band Protocol takes around 10–30 seconds to update a price.

Our oracles enabled dApps to host synthetics trading based on live price feeds with no deviation, no waiting for the price update, and no frontrunners.

Muon Oracle Docs:

https://muon.gitbook.io/basics/use-cases-1/oracles-data-feeds

Link to muon network:

https://muon.net

Muon Oracle speed comparison:

https://www.youtube.com/watch?v=KzqZKxG7sds

Traditional financial Assets supported through the Oracle:

MUON Oracles currently use an open-source API that gives access to price feeds of around 50,000 Stocks directly queried on request from multiple open-source data.

The infrastructure is highly customizable; it’s possible to add ANY price feed.

Muon oracles can provide cryptos, Stocks, Commodities data as live-price feeds on-chain

https://github.com/muon-protocol/stock-api

Adding a new Synthetic to the Oracle

Every Synthetic asset users want to trade on DEUS can be added in due time.

After a proposal on https://snapshot.org/#/dea.eth, DEUS DAO will review the asset, and its risk will be categorized and then added to the protocol.

In v3, risk assessment is done via Market Makers and not DEUS itself, completely decentralizing the risk assessment process.

How does the protocol Generate Revenue?

In that sense, DEUS is very similar to native protocol tokens like ETH.

Through Token price appreciation, value transposes into the DEUS ecosystem because the demand for synthetics trading needs to be satisfied by burning DEUS.

It’s very similar to how EIP-1559 introduced a burn on ethereum transactions.

The only difference is that in DEUS, we don’t have infrastructure transactions based on resources needed but financial transactions based on size and volume.

A high volume of DEUS trading leads to a big burn on DEUS tokens transposing value from protocol users to protocol owners.

With this system, we don’t need to charge a fee directly on every trade but can open the possibility for every 3rd party front-end provider and market maker to create their fee structure around the DEUS protocol.

A fair economic system.

Front end providers

One of our 3rd party front-end providers running on top of the DEUS Infrastructure is dSynths. If you want to check out how synths trading through DEUS feels, they are hosting ~500 Stocks and around ~30 Cryptos, as long and short positions.

3rd party provider spreads (fees) on Synthetics Trading:

On every transaction, a spread is applied (fee). That spread flows into the contract to be claimed by the front-end providers multi-sig on every buy and sell.

Synthetics Frontend Link:

www.dsynths.com

Read more about the upcoming DEUS V3
https://lafayettetabor.medium.com/deus-bilateral-agreements-6710f4f91122

Before making any final decision feel free to discuss the proposal in the xDAO section of our discord http://discord.gg/LiquidDriver

There is also an AMA planned in the Liquiddriver Discord on Friday 28.01.2022 with the DEUS & MUON Founder Lafayette Tabor.

Join our Socials:
https://twitter.com/DeusDao

https://discord.com/invite/xTTaBBAMgG

https://t.me/deusfinance

--

--