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Aeternity Protocol for Synthetic Asset Swap applying Time Locks, Ricardian Contracts, Mixed Oracles, and Threshold Signatures.

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AeroNet

Aeternity Protocol for Artificial Asset Exchange in the Cryptoeconomic Coherence of Money Markets and Monetary Models.

Application Context

A ‘synthetic asset’ is a simulation of a real world asset. It is a synthetic representation of a real or collection of assets. It also represents/holds the same financial value of the asset(s) it represents. It can be a combination of derivatives like futures, options or swaps. The underlying asset of the derivatives could be a stock, bond, commodity, currency etc. Future and forward contracts are contracts that are used by businesses and investors to hedge against risks or speculate.

Futures and forwards are examples of derivative assets that derive their values from underlying assets. Both contracts rely on locking in a specific price for a certain asset.

There are many different reasons behind the creation of synthetic positions. A synthetic position, for example, may be undertaken to create the same payoff as a financial instrument using other financial instruments. A trader may choose to create a synthetic short position using options as it is easier than borrowing stock and selling it short. This also applies to long positions, as traders can mimic a long position in a stock using options without having to lay out the capital to actually purchase the stock.

This application is a novel implementation of time locked, mixed oracle powered derivative contracts first ever implementation in the Aeternity Protocol.

Application Architecture

  • Hash Time Locked Contracts
  • Verifiable Delay Functions
  • Ricardian Contract Model
  • Mixed Oracles or Mixicles
  • Synthetic Assets
  • Derivative Contracts
  • Derivative Swap
  • Derivative Exchange
  • Derivative Trading APIs

Application Progress

  • Improvements on Time Locks
  • Implementation of Verifiable Randomness
  • Extension of Hash Functions for Time Locks
  • Research on Mixicles
  • Research on Derivative Contracts
  • Research on Derivative Swap

Application Alignment to Aeternity

  • Recursive Expressions of Sophia
  • Cryptography Toolkits of Sophia
  • Hybrid Consensus of Aeternity
  • Oracle Services in Aeternity

Application Roadmap

  • Extension of HTLC
  • Design of Ricardian Contracts
  • Design of Derivative Contacts
  • Design of Partial Orders
  • Design of Complete Orders
  • Design of Long Short Controller
  • Design of Order Manager

Application Business Model

  • Derivative Token Exchange
  • Derivative Token Swap
  • Derivative Token Pools

Application Outcomes

  • Tokenization of Synthetic Assets on AE Protocol
  • Execution of Mixed Oracles on AE Protocol
  • Execution of Derivative Swaps on AE Protocol
  • Creation of Trading APIs from Derivative Contracts
  • Creation of Derivative DEX on AE Protocol

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Aeternity Protocol for Synthetic Asset Swap applying Time Locks, Ricardian Contracts, Mixed Oracles, and Threshold Signatures.

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