The First Stage Ecology Establishment and Establishment Rewards
We kick-start MiniSwap by initiating MiniSwap ecology establishment funds and rewarding to our community. MiniSwap has a limited supply of 1,000,000,000 MINI, which will be used as start-up capital. These MINI will be given to the community according to the establishment rewards. In particular, 157,000,000 of the total supply will be issued in the form of private placement.
The fund pool uses a ladder exchange algorithm:
In the first round of private placement, 1ETH can be exchanged for 100901MINI, with a total of 2018039 pieces.
In the second round of private placement, 1ETH can be exchanged for 93838MINI, with a total of 2815164 pieces.
In the tenth round of private placement, 1ETH can be exchanged for 52510MINI, with a total of 5776154 pieces.
And so on...
Miniswap private placement pool
The Second Stage MiniSwap Genesis
MiniSwap Genesis is an Ethereum-based decentralised and automated trading platform. It leverages two key concepts. The first key concept is a liquidity pool, where liquidity providers adds tokens into the pool and traders exchange any pair of their tokens within the Ethereum ecosystem. The second key concept is transaction-fee-mining, where MiniSwap provides rewards to the trader for each of their transaction. For each transaction processed in MiniSwap, all MINI holders will also obtain a share of the community reward.
MiniSwap dynamically adjusts the price of any given pair of tokens.Let pi be the price at time ti. Formally, the price pi,∆t of using token A ∈ T to buy token B over a period ∆ starting from ti is defined as follows:
Any participate can access to this oracle to get an estimation of the price,i.e. the average price of a time interval.Analysis. To see the benefit of using this weighted price oracle, let’s consider that the price p¯A,Bi of using A to buy one unit of B at an isolated time point where we do not apply the accumulation, that is
MiniSwap provides liquidity for any pair of assets through a liquidity pool.MiniSwap stores reserves of any two assets (A, B ∈ T ) of a linear relationship,as follows:
where K is a pre-defined constant. Liquidity providers contribute their tokens into the pool according to the linear relation, i.e., for each of the token A to be reserved, the liquidity provider needs to also put some token B into the pool according to the defined relationship. Traders can exchange any pair of assets available in MiniSwap. The exchange of assets can be done seamlessly with no confirmation delay through a contract enabling atomic transactions. Let n A be the number of asset A the a trader wants to spend to buy asset B and f be the transaction fee of this transaction,then the trader will obtain nB of asset B, as defined below
Every transaction in Miniswap is confirmed, there will be a MINI twice the transaction fee is mined, 50% of which is obtained by the trader; 50% by the liquidity provider.
All handling fees generated in Miniswap will be used to purchase MINI. Among them, 50% will be allocated to token holders; 50% will be directly destroyed.
The Third Stage MiniSwap DeFi
At the third stage of MiniSwap, we will introduce MiniSwap DeFi to enable a variety of decentralised financial products. This will create an ecosystem of MiniSwap with rich features.
1.An American Option
An American Option is a financial contract. It enables a buyer to purchase or sell an asset at a pre-defined price no later than an agreed time. The predefined price is called strike price (SP) and the agreed time is called an option cycle. As contracts are not always available, an option cycle defines the available time for a listed option. MiniSwap DeFi provides eight different option cycles, including 1 minute, 3 minutes, five minutes, 15 minutes, 30 minutes, 1 hour, 12hours, and 24 hours. Each option has an intrinsic value (IV). Intrinsic value is the difference between the option’s strike price and the current price (CP) of the underlying market. For call options, intrinsic value is calculated by subtracting the strike price from the underlying price. Similarly, the intrinsic value of put options is calculated by subtracting the underlying price from the strike price.
A premium is the price that a buyer needs to pay for buying N options. It is also the maximum amount of money a buyer can lose.
MiniSwap DeFi also provides insurance services to participants. A participant of MiniSwap DeFi can leverage this insurance service to reduce its lose. Each insurance has a specified price range where the insurance would cover. For example, a short seller purchases one BTC option with 10 minutes option cycle, underlying price of 5000 USDT, and intrinsic value of 12 USDT. The breakeven price is be 4988 USDT and the premium is 12 USDT. If this investor uses 1 USDT to buy an insurance of 5 USDT at the price range from 4990 to 4995 inclusive, then if the strike price is within the range, the insurance will providemaximum 5 USDT to the user. If the price is not within the range, then the calculation of the users profit or loss is as normal.
The Fourth Stage MiniSwap Global
We will launch MiniSwap Global in the fourth stage, by enabling MiniSwap DeFi to communicate across distributed ledgers. This will make MiniSwap a decentralised, interoperable, and automated platform for trading a vast variety of financial products provided by different ledgers. MiniSwap Global will enable a network of ecosystems and allow traders from different blockchain platforms to trade seamlessly.
The initial plan is to enable a mixture of Cosmos-like solution and Atomic Swap . The former will be suitable for traders desiring fast confirmation and the latter can be done in a pure distributed peer-to-peer manner.