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5. IADD Network
Instantly and Automatically Deployed DeSwap Network
Like its name, Instantly and Automatically Deployed DeSwap Network, IADD Network is a decentralized swap network that is instantly and automatically deployed. It servers for the valuation of dApps and universal payment (settlement).
- Automatically deploying a decentralized exchange
- Automatically deploying a decentralized settlement(universal payment) network.
- A important part of Protocol of Unit Token.
"Natrural Dao" is a philosophical thought from the Tao Te Ching, meaning that the law reflected in everything is "Mother Natural". The principle of Dao follows the natural order, unbound by artificial constraints. Similarly, the IADD network we have designed adheres to this philosophy. By utilizing algorithms based on the inherent patterns of decentralized exchange and implementing control through smart contracts, the network has successfully deployed decentralized exchange and settlement infrastructure for tokenomics and dApp's development. It has actively contributed to the establishment of a pricing unit system as well.
- Perfectly Decentralized Price Discovery Mechanism and Abundant Liquidity ① Bancor's innovation brought about a revolution in price discovery mechanisms, eliminating the need for order matching. It revealed that the collaboration of liquidity pools and algorithms in smart contract can achieve decentralized price discovery, enabling instant completion of exchanges for any number (and same number of different valuation tokens) of tokens. This innovation is undoubtedly worthy of being inherited by DAism. ② The token price algorithm adopts the simpler Constant Product Market Maker of Uniswap. Constant Product Market Maker is a model of market maker and generates token pricing in a non-linear way. CPMM is used by Uniswap, and we have imporved it. ③ Valuation changes without distortion, fully reflecting investor judgments: DAism's Protocol of Valuation Token's Supply uniformly supplies all valuation tokens of each DAO directly to the IADD Network. And after the complete issuance of valuation tokens to the IADD Network, they become reserve currency, contributing to the establishment of liquidity pools in the market. The reserve currency achieves value discovery through automatic calculations and provides liquidity to the market without the need to consider the size of exchanges. This is a revolutionary protocol because the decentralized exchange network built upon it neither requires nor allows any human participation in liquidity provision!
- Built-in Token Price Measurement System① The unit system for valuation token prices is the only scientific means for blockchain (smart contracts) to obtain pricing power. ② Do not doubt it; it will eliminate all current exchanges. ③ It will completely solve the long-standing universal payment (settlement) issue in tokenomics for over a decade. ④ It merges DEX and D-Payment into a single entity (2-in-1 network).
- Smart Contracts Manage Everything, Completely Self-Operational① The advantage of smart contract is its ability to run permanently. ② Full self-operation means unmanned, i.e., resistance to human intervention.
- 1.Protocol of Unit Token See below.
- 2.Protocol of Valuation Token's Supply See the previous section.
- 3.Protocol of Decentralized Exchange See the previous section.
- 4.Decentralized Payments Protocol See the previous section.
In this protocol, the basic price unit is vita, and the prototype of vita (pricing standard) is uToken, which means that the price of a uToken is defined as 1 vita. The issuance mechanism of uToken is named as ETH Forge. and uToken's precision is 18 bits, which means that attovita (10^-18vita) is the smallest denomination of price.
Name: Unit Token
Basic Unit: vita
1 vita = 100 cent
First, let's review the related points from some protocols:
- All valuation tokens of each DAO are entirely issued to the IADD Network. What sets this approach apart from the commonly initial coin offering is that the DAO team is not responsible for the issuance of valuation tokens, and they do not receive any allocation of valuation tokens. This eliminates the possibility of dApp development teams exploiting valuation tokens to manipulate the market!
- With all valuation tokens of each DAO issued to the IADD Network, the prices of valuation tokens can genuinely reflect the market's real value assessment.
- 1.The International System of Units (French: Système International d'Unités, abbreviated as SI) is the most widely adopted standard system of measurement globally. For example, in 1793, the definition of weight (later changed to mass) was based on the weight of pure water at its freezing point with a volume of one cubic decimeter. It can be seen that the unit of weight is defined by a reference object (standard). With the introduction of the mass standard and its base unit, the weight (mass) of all things can be calculated through algorithms of a scale. uToken serves as the pricing prototype and vita is the basic unit of price.
This section requires you to understand Uniswap's constant product formula(automated market maker algorithm) in advance. Please refer to the following information for details.
Issued by an ETH FORGING model, uToken will temporarily be 1:1 pegged with the US dollar. Its demicals are 18. uToken's issurance mechanism is as follows:
We introduce a Reverse Improved CPMM algorithm to initialize the system with ETH's circulating supply, and market cap.
- 1.We introduce a Reverse Imporved Constant Product (RICP) algorithm to initialize the system with ETH's circulating supply, market cap and uToken's defined price unit (1 vita).
- 2.After an ETH supply and an uToken supply are obtained the product of the two crypto supplies can be composed.On system initialization, and ETH's real-time market cap will be used as the system's initial uToken supply.
- 3.ETH Forge algorithm: Reverse Imporved Constant Product (RICP, or RI-CPMM) algorithmIADD network still use Uniswap's Constant Produc fomula:A * B = KThe tokens' amounts are not the ones inside the pool but outside the pool:Initially, A is the total amount of ETH which has been issued by Ethereum. and B is the amount of uToken, which is equal to ETH's volume.
- 1.Trading Market That Reflects Real Demand: When a DAO created, DAism issues its tokens according to Circulation Token Protocol at the same time, and all of them will be supplied to the IADD network.A common issue that both Bancor and Uniswap face is that there are insufficient tokens in their reserves. This leverages price vibration and results in relatively large price fluctuations when trading volumes go slightly higher. Our solution injects an ICO's full token amount into the decentralized exchange and reflects the market's real demand. Only based on this liquidity will a token's pricing be rational and reasonable.
- 2.This mechanism has the following advantages:
- Every DAO's token is issued diretly to IADD newtwork, initially there is no Token allocate to the DAO. Thus the IADD Network prevents a token issuer from dumping his tokens for uTokens. There are cases in which a token issuer issues a worthless token and dumps his holding (maybe up to 80 or 90 percent of the total token supply) for valuable tokens such as ETH and stable coins etc right after his token is listed for trading.
- There are cases in which right after a token is listed for trading some investors collude with the token issuer to firstly beat down the token price by dumping their holdings and then buy back at a price even lower than the ICO price. The IADD Network prevents this from happening. For instance in this system after token ABC is listed for trading if no one buys ABCs none of the existing ABC holders can sell their ABCs, because there's no uToken on the trade pair, it only exists in the Improved CPMM (only a number for the algorithm). This drives all investors to investigate deeply an ICO project before he makes an investment decision.
- The above points can be viewed as a result of regulations to token's issue.
- This mechanism prevents a token's price from dropping below its ICO price therefore protects investors, who bought the token on IADD, from suffering huge losses due to price diving which often happens in all existed exchanges and could cause a token's price to lose 90% to 95% percent after that token is listed for trading.
- Signals an alarm for a dying token--- In a traditional crypto exchange or decentralized exchange such as Bancor and Uniswap etc a token's price can go down infinitely. It is hard to judge whether or not a token/project's development is still on track. In the IADD Network when a token's price goes down to its initial price, nobody holders it. It might mean this DAO is totally discarded by the market. This signals an alarm that this token/project may have problems. If a token's price remains at the ICO price for a long time, e.g. 1 year or even longer, this signals an alarm that this token/project may fail.
- There are cases in which a token/project's development is not recognized by the markets and its price is beaten down to its ICO price but its team is striving to revamp its development. In this case although the token's price is too low for its holders to sell it, its team may still have chances to save the project by delivering good service and product. Once its service and product are recognized by the markets again the token's price will go up again.
- 1.Instant DeploymentRight after an ICO succeeds its token will be listed and traded with the stable coin uToken or any ERC20 tokens that are available for trading in IADD network.
- 2.Automatical DeploymentA token's listing and trading are managed and automatically deployed by smart contracts.
- 3.Unattended exchange and payments network All existing decentralized exchanges need many users to support its running. The innovation of IADD is of great significance!
- 4.Eliminates possible privileges multiple parties have in Centralized ExchangeIn a typical centralized exchange a token issuer, the exchange and possible bankers may collude with one another to manipulate the token's price.Our proposal elimiates these parties' privileges and possible collusion, and dismantles human interference in trading.
- 5.First Ever Decentralized Model for Token Pricing with Stable CoinTrading of a token in Bancor or Uniswap is paired with BNT or ETH. In either case when BNT or ETH's price fluctuates hugely a token paired with it is affected by the price fluctuation as well. For example when a project's development is well on track ideally its token would in general be traded at a stable price in fiat currency. But when the token's trading is paired with BNT or ETH its price in fiat currency might fluctuate as BNT or ETH's price in fiat currency fluctuates. This price volatility would fuel speculation rather than encourage application in business and economy.
- 6.Brings Applicable Stable Coin to Blockchain Based ApplicationsThe best and most popular application of a stable coin is in retail (e.g. e-business), micro payment and etc. IADD provides the most critical part of the payment for the blockchain, that is, stable coin uToken with absolutely solid price.
- 7.Rational Pricing ModelIn Bancor the base token is BNT and in Uniswap the base token is ETH. Both BNT and ETH belong to stakeholders or token issuer. In Bancor the real maximum reserve a token issuer can provide is about 5%(Bancor's recommended value) of the total supply. Even with the maximum reserve a token's price volatility is still huge. This volatility is nearly 20 times the volatity which trading with a token's total supply would generate(More details will be added for this later).In our proposal when a token's ICO succeeds the equivalent amount of the token issued for the ICO will be issued and transferred to the exchange. Those additionally issued tokens and don't belong to any stakeholders or token issuer and cannot be taken out from the exchange without trading. Therefore pricing of a token in the exchange reflects real trading's demand and supply. This pricing model is rational and reasonable
- 8.Zero Cost for Token Listing, DAO Loves ItOur proposal brings great interests to a token issuer by eliminating the aforementioned huge costs and building confidence in both the token project and the token issuer. Token issuers would love this proposal.
- 9.In addition to being applied to the investment market, it also enables blockchain payment. Because the price of uToken is absolutely constant, the pricing and consumption payment of products and services have a solid and reliable foundation.
- 10.Adhering To Blockchain's Core ValuesOur proposal is completely decentralized and censorship-resistant.
- 11.It might a mechanism to phase out failed dAPPs.