Difference between revisions of "Rhino.fi (DVF)"

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Revision as of 06:32, 1 August 2022

Layer 2 "gateway to multichain DeFi"

Basics

"Effective immediately, DeversiFi has migrated to a new back-end codebase, resulting in 10x higher performance, improved order management and a new dynamic fee schedule, paving the way for the StarkWare upgrade in Q1-2020."

 History

  • Moved from Ethfinex to DeversiFi (2019) and then into Rhino.Fi (14-7-2022):

"DeversiFi is no more. Now, we’re http://rhino.fi We’re no longer just a #DEX. We’re a frictionless #Layer2 gateway to multi-chain DeFi."

"The Nectar (NEC) token was launched in February 2018 with the primary purpose of incentivising liquidity on the Ethfinex centralised exchange. Traders who provided liquidity to the order books were rewarded with NEC tokens when their limit orders were matched. Tokens were issued in proportion to each trader's share of total exchange maker volume. This was not only a novel concept at the time, paving the way for a host of copycat exchange tokens, but also acted as an effective mechanism to distribute the token to those who had the greatest involvement with the exchange. Furthermore, 50% of Ethfinex exchange trading fees were pledged to NEC holders via a set of smart-contracts on the Ethereum blockchain to token holders. As of 20th September 2019, there are 17,807 ETH1 (~4.0 million USD) pledged to holders. The original NEC 1.0 model was inflationary, such that the amount of NEC issued per USD value of trading volume on the exchange decreased over time. Traders were incentivised to provide liquidity to the exchange sooner rather than later due to the declining issuance schedule. The token was also used to make governance decisions via a community portal at Nectar. Community. For example, NEC holders were issued temporary voting tokens which they were then able to use to vote new tokens onto the exchange. There were 14 such voting rounds leading to over 40 new tokens being added to Ethfinex.3"

Audits & Exploits

"Funds traded on DeversiFi are secured by heavily audited smart-contracts. If DeversiFi goes offline, you can always retrieve your assets. Trade from your choice of private wallet or enterprise custody solution."

Bugs/exploits

Governance

Admin Keys

DAO

  • Governance went live (17-8-2021). DVF token holders can now participate in the governance of the DeversiFi protocol.

Treasury

Token

Launch

Token allocation

"Community: 209,756,830 

DeversiFi: 100,000,000 (5 year vesting, 20% unlocked per year)

    -of which 10,000,000 allocated for community bounties

Bitfinex: 308,387,549 (5 year vesting, 20% unlocked per year).

    -of which 9,400,000 allocated for community bounties"

"DeversiFi Token (DVF) will have a total supply of 100 million, according to the token contract address shared in the official blog post. The team says it would give out ~50% of the token supply as rewards to liquidity miners and traders to incentivize adoption. As for existing NEC token holders, only 7% of the DVF tokens will be airdropped to them based on a snapshot taken on Mar. 25. However, this will exclude Bitfinex, DeversiFi founders, and a few other large NEC holders."

"In March, the DeversiFi team launched its governance token, DVF. More than 50% of the supply was reserved for liquidity mining rewards. Under the latest investment round, 12.5% of the total supply of DVF was sold to the investors for their long-term stake in the DEX."

Utility

  • NEC. From their support (4-6-2020):
  1. "Unique trading fee discount structure which benefits all Nectar holders
  2. Deflationary supply via a weekly Buy and Burn model utilising up to 50% of exchange revenues from trading fees
  3. Governance decision making by an open and decentralised community via earned Reputation (REP), gained by NEC staking mechanisms."  

"The new DVF tokens will need to be staked on the DEX to acquire governance voting rights and be eligible for a share of fees. The DEX fees will be divided between token holders and liquidity providers."

Token Details

  • Its first token was NEC and then in March 2021 they announced a new token, DVF.

Stablecoin

Coin Distribution

"NEC tokens were highly concentrated between a few large holders–Bitfinex, DeversiFi, and others controlled more than 90% of the token supply. Thus the team agreed to issue a new community-driven governance token to replace NEC tokens. This time, the team ensured the majority of its token supply is reserved primarily for the community." This translates to 50%.

Tech

  • Whitepaper can be found [insert here].
  • Code can be viewed [insert here].
  • Built on: Ethereum

How it works

Fees

Upgrades

"Deversifi’s validium (off-chain data held by committee) upgrades to StarkEx v2 which includes fast withdrawals and a Turing-complete STARK proof language, though non-conformant ERC20 tokens (OMG, USDT) won’t work for another month."

Staking

Liquidity Mining

"Nectar Beehive V1 went live this week which is a liquidity mining program for the DeversiFi Nectar token (NEC) with the goal of bootstrapping community and liquidity in their ecosystem."

Scaling

Different Implementations

Interoperability

Other Details

Oracle Method

Privacy Method

"All transaction data is handled off-chain with only commitments to the new state being periodically published to the blockchain. This means that you don't need to worry about your proprietary trading strategies being copied, or your trading activity being interrogated in any way."

Data Availability Committee

"In order to achieve privacy, DeversiFi trader’s balance data will be moved off-chain, rather than storing it on the blockchain. There are several other privacy achieving methods that are currently being researched by StarkWare that could be implemented in the future, without requiring data to be stored only off-chain by a committee. However, the current approach was chosen as a pragmatic solution following conversations with large customers and will be improved in the future.

The Data Availability Committee has three main functions:

  1. Protect user trading privacy by allowing balance updates and trades to be hidden from other users.
  2. Check the balances state and if valid sign to allow the merkel root of the state to be updated on-chain.
  3. Publish all balances data if DeversiFi and or StarkWare were ever to go offline or withhold data."
  • From their blog (4-7-2020):

"Longer term, traders will be able to choose to have their data either stored off-chain (the current DeversiFi system), or on-chain. This new solution is called Volition and enables traders to benefit from both privacy and high TPS, whilst not relying on the DAC. Traders will be able to choose between Validium and zkRollup. For more information about this revolutionary new technology, see the StarkWare Volition announcement

As well as Volition (a choice between off-chain, or on-chain data via the security of a ZkRollup), StarkWare will also remove the need for the DAC to keep trade data private, meaning the Quorum of DAC members can be increased from the current seven."

Their Other Projects

Validium StarkEx

  • The technology being used (StarkEx) by the exchange has its shortcomings and operators can freeze users’ funds.

necDAO

"necDAO will have scope to govern:

  1. A whitelisted tokens registry (dictating the assets which can be traded on DeversiFi)
  2. The Ethereum Name Service records registered for the DeversiFi smart-contracts
  3. Ownership of the Nectar ERC20 Token controller smart-contract for future upgrades
  4. The management of the earned exchange fee pot (around 17k ETH)

The necDAO will manage:

  1. the "fee pot" (50% of trading fees collected so far during the Nectar distribution phase on Ethfinex, around 17k ETH).

When a nectar holder claims their reputation in the new DAO, they are asking for their proportional share of the “fee pot” to be transferred to the DAO. The "fee pot" will begin slowly dripping funds to the DAO via a vesting contract over a 3 year vesting. This allows vesting to be cancelled if vulnerabilities are later found, rather than having the full funds at risk in a complex smart contract. Future funding may come from other sources which the DAO develops or negotiates."

"Traders were able to decide what tokens they would like listed allowed by the Kleros dispute resolution court.

While only launching on the 24th January, necDAO only has 108 members. Interestingly, a total of 359 addresses have a NEC balance meaning only a third of holders are members. The number of NEC staked in the DAO is ~75m which equates to 25% of the circulating supply.

Looking at the the governance specific metrics, there have been a total of 19 proposals, 47% of which have been successful. Although votes seem to be growing on a month-by-month basis, voter turnout is low at just 32%. Proposal participation (where reputation can be further earned in successful cases) is even lower at 12%.

In the case of DeversiFi, a consortium of 7 members (see here for full list) keeps the off-chain data and if DeversiFi was to shut down, at least one of the 7 members must exist as well as be honest for users to get their assets back. "

Roadmap

  • Can be found here (2-11-2020).
  • From their blog (4-7-2020):

"Without giving too much away at this stage, the main three areas that we are concentrating on in the short term are UX Improvements & Wallet connectivity, DeFi Integrations and Better Withdrawals."

Usage

Projects that use or built on it

Pros and Cons

Pros

Cons

"DeversiFi decided to innovate by integrating a zk-Stark Layer 2 solution, allowing their platform to scale transactions per second dramatically while obfuscating the trading footprints left by the users of the exchange.

But the zk route means there is no composability to the main Ethereum chain. In layman’s terms, this means that DeversiFi’s order book is not readable by other smart contracts. 

This might not sound like a big deal, but consider this: DeversiFi’s order books will not show up in DEX aggregators such as 1inch or Paraswap, even if chances are they provide some of DeFi’s tightest bid/offer spreads and depth."

Competition

Team, Funding, Partners

Team

Funding

"DeversiFi just raised $5 million in a funding round. The funds have been raised under a strategic investment from ParaFi, with participation from other venture capital firms and key players in the cryptocurrency industry, including Defiance Capital, Lightspeed Venture Partners, Blockchain.com, Delphi Ventures, Fenbushi Capital, OKEx, and Longhash Ventures. StarkWare, which powers DeversiFi, also contributed."

Partners 

(:

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