DEUS risk assessment + updated roadmap
As already announced on 28.10.2020 in the telegram announcement channel
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Due to the current situation with the corona pandemic spreading across the world, possible delays could occur please bear in mind that those are only estimations and real delivery dates could change due to factors out of our control.
Until the end of November: Implement Time Lock staking contracts called “sands of time vaults.”
Reason for that change:
Before the conductor launch, we will already be starting
to acquire Liquidity by giving away another big chunk of the DEA supply currently inside the other staking contracts.
We will migrate them; the concrete number will be defined one week before we launch the Vaults.
I will also create an “APY guess-sheet” based on some number crunching to give you a perspective of what is to come.
until the End of December: Launch conductor market maker.
From there on, you will be able to buy and sell TSLA & QQQ, also inverted TSLA and inverted QQQ.
until the end of January: Add the SP 500 data feed from finnhub.io on Conductor.
From there on:
We will have around 500² different possible asset combinations on DEUS Swap.
Because every asset can be combined with another asset, 250,000 different asset combinations on DEUS Swap are available next year.
January till February:
Starting to develop the rebalancing feature
described in my older medium article:
Rebase event & gravitational force.
February until its finished:
acquiring security audits by respected brands (all other contracts used will also be audited in the meantime)
As was announced yesterday, there will be changes to the deployment strategy and the global strategy for the next 6 months.
Initially, DEUS had the plan to invent something we now call Infinite Registrars. They were meant to have no expiry date and behave like normal stocks: once created they would follow the stock price forever.
Having considered the still-developing trust for this new and abstract system, and the overall priorities of the project, the council has decided to create a preliminary, safer system for the early stages of growth.
Here’s a brief description of changes:
- Sands of Time Vaults — There will be liquidity provider time-locked contracts called “Sands of Time Vaults”. This was already known before, but we will now tie these vaults to certain values.
- Other vaults — Different vaults will exist for different asset classes. For example, stocks that could see exponential growth will be labeled as “high-risk assets”. Fees for them will be higher, but so will be the risks for liquidity providers. For now, there will only be a one-time lock contract and only one Registrar class. This gives Liquidity providers the ability to choose the risks they are willing to take.
- Registar risk evaluations — We will analyze assets’ risks by researching them in depth before they are added to DEUS Swap. We will use measures of volatility like the Beta to calculate the systematic risk of assets before adding them and will divide vaults used for safer assets from those used to fund the trading of high-risk assets.
For now, the assets we will add until December are the blue-chip safe bets:
All 500 stocks inside of the SP500.
QQQ as an Index.
One of the concrete risk assessment strategies
The Beta — a risk indicator
Beta is a measure of the volatility, or systematic risk of a security or a portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks). CAPM is widely used as a method for pricing risky securities and generating estimates of the expected returns of assets, considering both the risk of those assets and capital costs.
The Volatility Index
The CBOE Volatility Index (VIX) is a measure of expected price fluctuations in the S&P 500 Index options over the next 30 days. The VIX, often termed as the “fear index,” is calculated in real time by the Chicago Board Options Exchange (CBOE).
The key words in that description are expected and next 30 days. The predictive nature of the VIX makes it a measure of implied volatility, not one that is based off historical data or statistical analysis. The time period of the prediction also narrows the outlook to the near term.
The assets we will add have all been verified by Standard & Poor’s before being added to the S&P 500. The 500th rank on their list still has a market cap of around 8 billion, which lowers volatility to a minimum.
The council advisors will prepare detailed risk assessment strategies for future implementations of Registrars.
high-risk Registrars will not be mixed with low-risk Registrars, so the Liquidity providers can decide on the risks they want to take.
DEUS — wants to be a “safe-haven.”
A lot of people think that DEUS plans to offer highly profitable stock trades. This opinion is rather misguided. DEUS is envisioned as introducing stable, low-volatility assets to a world of high volatility that we are used to seeing in cryptocurrencies. We don’t want to create a platform where you can trade for 30x gains in one week.
We want to create a platform where investors can save the gains they made with highly volatile assets. To be a “safe-haven.” in a world where things like this…
Oct 28, 2020 (1 day)
…are completely normal.
So the premise of DEUS is not to provide liquidity for assets that pump 1114 % but to hold reserves for people that are searching for a safe-haven.
DEUS as abstract as innovative
We very well realize that this topic is something critical inside of the community and among investors, and this is because:
- nothing else like this has been done before
- other projects chose a very high collateral rate
- one of the core beliefs in crypto ethos is that high gains are made all the time
So we wanted to show that we heard that voices and concerns and show the community that DEUS is a well aware project and give a positive impulse and direction to this.
We will implement stricter collateralization rates in the beginning while still holding the premise that we divide the
This gives traders the possibility to enter the markets without providing ANY collateral. A crucial requirement for true mass adoption.
That is the unique selling point and the difference between DEUS to projects like SNX or Linear Finance.
This is also the unique selling point for DEUS and differentiates it from other decentralized derivatives projects like SNX.
The de-coupling of Traders & Liquidity Providers.
What about FTX?
Projects like FTX, Etoro, Robinhood or any other centralized broker entities are totally different, in fact, they have been around for years if not decades; there is nothing innovative about them.
They don’t have anything in common with the decentralized versions DEUS or SNX are representing.
DEUS is not a Broker
And to get this point straight, DEUS is not a Broker per se; it is also an investment bank as it is the one that creates the actual Assets while relying on datasets of a well-established industry.
The best way to describe it is the following:
DEUS “borrows” the well-established & earned trust of the stock market to bootstrap a new innovative way of creating and trading derivatives in a decentralized and, therefore, totally new way.
We use the stability, low volatility & “regulated” nature of stocks and inject it into a highly volatile environment, the ethereum blockchain.
DEUS — Registrars are better stablecoins
This is basically what Tether, DAI, Facebook, and all others tried to do with their stablecoins.
But a stablecoin doesn’t offer any upside, only downsides; people need a “middle-way” something stable while still being able to grow, something that is less volatile while not being totally flat.
The traditional financial world on a decentralized ecosystem
DEUS wants to combine the best out of both worlds while staying fully decentralized and bootstrap its liquidity up from the bottom.
Let’s go into more details and give some actual examples:
There will be the Sands of Time Vaults. Those vaults will be staking contracts with time- locking features that run for 6 months. We will later add more and more Vaults with different time frames & Risk Levels.
We chose 6 months to bootstrap the platform to its full potential while still delivering a minimum viable product that can scale ad infinitum given enough participants. That is our current goal.
In the next part, we will explain the minor details and technical aspects of every implementation.
To be up to date about DEUS development all the time:
Greetings from the Gods DEUS & DEA.
See you soon!