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1/ Today we’re publishing a DRAFT research paper “BitDEX: Building a Decentralized BitMEX with Priceless Financial Contracts”
- No centralized operator
- Ensures solvency without an on-chain price feed (!!)
- Introduces “priceless financial contracts”
github.com/UMAprotocol/wh… …
- No centralized operator
- Ensures solvency without an on-chain price feed (!!)
- Introduces “priceless financial contracts”
github.com/UMAprotocol/wh… …
2/ Priceless financial contracts—where no on-chain price feed is used—are the core innovation enabling BitDEX. This approach makes position data publicly available so anyone can audit—and dispute—positions that are undercollaterized.
3/ This allows almost all computation to run off-chain. The blockchain is only used to record position and margin data and to trigger disputes when positions are undercollateralized. Like layer 2 solutions: there is no need to verify things that everyone agrees too.
4/ More details on the design and its implications are covered here:
5/ In addition to BitDEX, priceless contract design can be applied to create very efficient synthetic tokens, futures, and swaps. Have ideas? Tweet at us, find us at Devcon, and/or join our slack: join.slack.com/t/umaprotocol/…
6/ Credit to
@0xlildex, @allilulllc, @hal2001, @mrice32, @varunfive, and Prasad Tare. Thanks to @cburniske, @jillruthcarlson, @BlkBoxEconomist, @alexhevans, @rawfalafel, @danrobinson, @ben_chain, @jinglanW, @karl_dot_tech and @ChrisTonetti for their valuable feedback.
@0xlildex, @allilulllc, @hal2001, @mrice32, @varunfive, and Prasad Tare. Thanks to @cburniske, @jillruthcarlson, @BlkBoxEconomist, @alexhevans, @rawfalafel, @danrobinson, @ben_chain, @jinglanW, @karl_dot_tech and @ChrisTonetti for their valuable feedback.
