/ dod-whitepaper-draft.txt
dod-whitepaper-draft.txt
1 ****** Before — After — Bridge ****** 2 3 4 Before — This will be the first section of your white paper. In it, you describe the reader’s world as it is right now. Provide as much detail as you can to create a gap where your solution will fit or foreground a lack that will need to be fixed for that world to be perfect. 5 6 [ 7 Where we are now, crypto options are a nasent market defined by a variety of on-chain amm, off-chain order books, request for quote systems and OTC systems targeting primarily to traders. These leverage oracles of all sorts, stablecoins (usually centrlized ones or ones dependant on off chain credit origination) and a variety of underlying tokens/nfts on particular chains. 8 ] 9 10 After –In this section, you will paint a world where the problem you foregrounded and highlighted in the first section is solved. Bring the readers to imagine that world and how better it is than what they know. 11 12 [ 13 In the future, dex crypto options represents on the deeps markets for on chain liquity, where un collateralized lending markets are heavily active buyers of option to hedge their loan books on the long tail of tokens/nfts collateral, traders pricing and hedging those options for them while leverating a credit system that is no longer overly reliant upon stablecoins built on off chain originated credit. 14 ] 15 16 Bridge — This is the last section, and it is where you describe your solution as what makes the new, better world possible. Describe the solution’s design, protocol, and implementation process concerning the reader’s ability to comprehend the technical aspects. In essence, in this section, you are presenting your solution as the bridge between the current world and the possible better world. 17 18 [ 19 DeFI Options DAO is defined as a Decentralized Options Exchange where the parameters can be governed by token holders. 20 This includes: 21 - exchange contract 22 - options books 23 - options registered 24 - pools registered 25 - erc20 token that represents an address exchange balance 26 - trades facilitation 27 - settlement facilitation 28 - underlying vault 29 - inteface 30 - storage of underlying tokens collateral used for covered calls not marked for rehypothecation 31 - vault shares 32 - what oracles traders can use 33 - dex twap aggregators 34 - inteface 35 - underlying feeds abtraction 36 - chainlink, pyth, etc 37 - interface 38 - the differet collateral models (including support for portfolio margin) that can be used for the assets 39 - default model 40 - portfolio margin 41 - how stable/udl token shortages/surplus are factored 42 - credit systems (on for stablecoins and another for each individual) underlying assets 43 - stablecoin credit system 44 - creation/destruction 45 - creation 46 - deposits of stables 47 - when hedging manager enabled on pool approved for borrowing collateral 48 - destruction 49 - withdrawals of stables 50 - when hedges closed enabled on pool approved for borrowing collateral 51 - internal debt creation/destruction 52 - destruction 53 - gains from providing liquidty for traders hedging 54 - creation 55 - losses from address exceeding their collateral deposited 56 - losses from providing liquidty for traders hedging 57 - losses from rehypothecated collateral 58 - underlying asset credit system 59 - creation/destruction 60 - creation 61 - deposits of underlying token 62 - when hedging manager enabled on pool approved for borrowing collateral 63 - destruction 64 - withdrawals of underliying token 65 - when hedges closed enabled on pool approved for borrowing collateral 66 - internal debt creation/destruction 67 - destruction 68 - gains from providing liquidty for traders hedging 69 - gains from rehypothecated collateral 70 - creation 71 - losses from address exceeding their collateral deposited 72 - losses from providing liquidty for traders hedging 73 - losses from rehypothecated collateral 74 75 - hedging contracts that interface with other protocols that can help offest a traders options exposure (as well as originate credit for those hedges that is destroyed upon expiration of the options/closing of the hedges) 76 - ideal exposure calc 77 - current esposure calc 78 - rebalancing 79 - interface 80 - credit tokens that can be redeemed over time for stables coins/underlying assets at an interest rate from the protocol when there is a shortage of the underlying assets 81 - stablecoins 82 - define redemption conditions 83 - can redeem when stables >= credit 84 - can redeem % debt outstanding owned * (% stables / credit) * stables available, when stables < credit 85 - once every dao defined withdrawal period 86 - erc20 87 - underlying asset 88 - define redemption conditions 89 - can redeem when udl token >= udl credit 90 - can redeem % debt outstanding owned * (% udl token / udl credit) * udl token available, when udl token < udl credit 91 - once every dao defined withdrawal period 92 - erc20 93 - rehypothication contracts that traders+DAO have to approve where they want their collateral they provide to sell options against, can be deposited/withrawn from external protocols for additional yield. 94 - interface 95 - liquidity pools that price options based on uploaded pricing surfaces that update automatically with oracle pries or can be static (this can be abstracted in frontends to look like typical limit orders). 96 - pricing: 97 - surface (https://thomasvilhena.com/2021/03/a-linear-interpolation-based-liquidity-pool) 98 - pulled from external amm 99 - lp tokens 100 - anyone 101 - to any one who deposits 102 - permissioned 103 - only to owner defined on pool creation 104 - conditional hedging 105 - hedging manager defined 106 - min dollar threshold in oi to hedge 107 - governace 108 - uses lp tokens as the governance token, not DAO governance token 109 - adding what options to buy/sell 110 - setting updating option price surfaces 111 - setting underlying price range when to allow for buying/selling options 112 - interface 113 - incentivization functions users can call that manages the exchange 114 - underlying feed stats updates 115 - liquidations 116 - before 117 - first try(only if more than 24h until expiration, else will just liquidate): collateral call 118 - second try : liquidation 119 - liquidation fee and penalty payed to DAO 120 - after maturity (settlement) 121 - settlement fee payed to DAO 122 - protocol goverance and settings 123 - function setCirculatingSupply(uint supply) external; 124 Allows token holders to set the circulating suply of dod, can not be set smaller than the previously set setting, cannot exeed that max supply for the token 125 - function setTokenRate(address token, uint v, uint b) external; 126 Sets the decimal normalization used to adjust the tokens decimals to the decimals DOD uses internally 127 - function setAllowedToken(address token, uint v, uint b) external; 128 Sets the allow stable coin 129 - function RemoveAllowedToken(address token, uint v, uint b) external; 130 Removes a previously the allow stable coin 131 - function updateCreditWithdrawlTimeLock(uint duration) external; 132 Sets the rate at which and address holding credit tokens can redeem them for stables/underlying tokens, defaults to 24 hours, min 2 hours max 48 hours 133 - function applyCreditInterestRate(uint value, uint date) external view returns (uint); 134 Applies the interest rate the DAO is willing to pay on credit tokens 135 - function setUnderlyingCreditInterestRate(uint i, uint b, address udlAsset) external; 136 Applies the interest rate the DAO is willing to pay on underlying credit tokens on a particlar asset 137 - function setDebtInterestRate(uint i, uint b, address udlAsset) external; 138 Applies the interest rate the DAO wants to charge on DAO issued credit 139 - function setUnderlyingDebtInterestRate(uint i, uint b, address udlAsset) external; 140 Applies the interest rate the DAO wants to charge on a particlar asset 141 - function setUdlCollateralManager(address udlFeed, address ctlMngr) external; 142 Approved the allowed collateral manager for a paricualr underlying feed 143 - function setDexOracleTwapPeriod(address dexOracleAddress, uint256 _twapPeriod) external; 144 Sets the dex twap oracle period, min 2 hours, max 1 day 145 - function setBaseIncentivisation(uint amount) external; 146 Sets the amount of credit the DAO wants to issue to an address for calling the incentivized functions on the exchange 147 - function setProcessingFee(uint f, uint b) external; 148 Sets rate the DAO wants to have when processing liquidations and settling ITM options, does not included hard coded rate for liquidations 149 - function transferTokenBalance(address to, address tokenAddr, uint256 value) external; 150 Tokens stored in protocol settings address and be transfered by DAO 151 - function transferBalance(address to, uint amount) external; 152 Credit balance of protocol settings (from fees and liquidations) address and be transfered by DAO 153 - function transferGovTokens(address to, uint amount) external; 154 Governance tokens held by DAO in protocol settings can be transfered by DAO 155 ] 156 157 ****** Features — Advantages — Benefits (FAB) ****** 158 159 This is another white paper template you can use. It focuses more on the solution you are presenting to the reader or the target customer. This is best suited when the solution you are presenting is meant for a problem that is almost obvious to the reader. 160 161 Features — In the first section of the white paper will break down and describe the features of your solution. For example, if you are introducing a new blockchain, you will describe the mining or consensus process, the network architecture, and the wallet design. 162 163 Advantages — In this section, you will describe what things give the solution a better chance at succeeding. Still, on your new blockchain, you can describe the capacity of the team behind it as well as the resilience of the technology you are using. 164 165 Benefits — This is the most critical part because it is what will sell your solution. People are always interested in how something makes their lives better. Describing benefits is about showing people how the solution will improve the quality of their life or that of their business.