Exotic Markets

assisstant
product card
product details
liquidity pools

Inspiration

Inspiration like most of the time comes from observing what happens in the world.

Coming from Finance we saw events happening on blockchains that happened 30 years ago in Japan.

Secure bond yield from government went from 15+% to close to 0 and banks started to propose structured notes with risk on your deposit to hungry investors.

Yield farming to receive a governance token is less interesting than it used to be and trading options is often too complicated for non-expert users. We wanted to bring the power of structured products which are options packaged in an understandable way for users to the DeFi world.

What it does

We are bringing structured products to DeFi.

Structured products are notes (you deposit money and receive a yield) with risks on your deposit. There is also possibility for investors looking for optionality to pay the yield and receive the optionality of the structured products.

There are lot of different products and strategies with more or less risk on your capital which means more or less yield received or paid. .

The important feature is that those products are packaged in an understandable manner, so anyone know exactly how much they can earn or lose.

Example: you are interested in BTC/USD movements and today the pair trade at 50000 $.

Deposit 1000 USDC today, in 1 weeks you will receive a guaranted yield of 5% (50$)

If BTC/USD goes below 70% (35 000) you will start to lose a part of your 1000 USDC.

If it is above 35 000, you retrieve your whole deposit (1000 $).

Our project is a DeFi project we want to bring in different actors and make it fair and interesting for them.

Liquidity provider will receive fees on the trades.

Retail users are here for the yield and the manageable risks

Market maker and arbitrageur will help to keep the price fair with their financial knowledge

How we built it

We started to get interested in Solana few months ago and had to learn everything. From Rust language, to the specific way of Solana blockchain to manage accounts.

We made different tests on on-chain calculations, distribution of pools, token… with the help of the developer community on Discord to finally be able to reach a satisfying proof of concept.

On the frontend we tried the classic typescript / Js / react combo without being totally convinced. We are not expert of frontend development and were a bit lost with all the libraries.

In the end we chose to have a more structured language and tools and since we are big fan of Microsoft and .NET language, we developed our Frontend with F# using the SAFE Stack. Special thanks to SolNet people.

Challenges we ran into

The first challenge was of course to learn something new. Documentation and examples of rust and Solana were not too common as it remains a new project. Hopefully, things are changing rapidly, and the Solana team and community are very helpful and supportive. It’s was a bit difficult to find the best solution available for a given problem. It was like moving forward in fog.

Fortunately, it is getting better and better, and I thank the community for that.

The second challenge would be the management of accounts and PDA as well as the limit of computation unit available in one instruction. Especially when you start doing financial calculations on-chain.

Accomplishments that we're proud of

We are proud to have overcome some design issues so that today we can present a first version of our work since the proof of concept from last August.

Structured products are not only a good business plan, it's also a natural progression of finance and we want to provide a fair decentralized platform for everyone to have access to.

What we learned

We started with a simple Idea which needed a complex execution. We learned to focus on retail user and simplicity with the help of our seed investors and partners: Multicoin, Chris McCann, Alameda, Ascensive Capital, Ledger Prime, Solana Capital and many more. We would like to thank them all, as well as the Solana Foundation for the grant they gave us.

What's next for Exotic Markets

The next step for exotic market is to aim a DEVNET version available to play with around end of November and a MainNet beta end of December / beginning of January.

Audit and Security test of our protocol and website will happen beginning of Q1 2022.

Integrate more and more with other protocols to create synergies and develop the ecosystem.

We may as well, by the end of the year, do a latest small investment round to make sure we have the resources to continue the Exotic adventure.

Thank you!