[First 3 minutes of the video is Limelight submission, the rest is the technical demo. ]
Small and Medium Sized Businesses need to adapt to ecommerce with more digital wallet users than deposit account holders at the largest financial institutions.
SMBs are key to accelerating economic growth as they create job opportunities, drive innovation, and expand the tax base in developing markets but banks are mainly for consumer accounts. The average SMB has 6x more deposits than the average consumer customer and use an average of 10-15 different financial products (Visa, Paypal, or Venmo) just to meet their business needs.
Expensive brick-and-mortars, malfunctioning ATMs, and paperwork. Defi can automate third party middlemen like bankers, insurance firms, or brokerages to perform hedging, earning interest or collateralizing loans. Banks owned by a single entity and permissioned to avoid counterparty risk, where the larger entity has more influence on whether the financial product is fairly honored. They rely on opaque pricing, upselling, and hidden fees that often penalize the most vulnerable customers. Old banks owned by a single entity and permissioned (AML/KYC) to avoid counterparty risk rely on opaque pricing, upselling, and hidden fees as a business model. Old banks owned by a single entity and permissioned (AML/KYC) to avoid counterparty risk rely on opaque pricing, upselling, and hidden fees as a business model. According to Defi Pulse since June 2020, DEFI had a +1,200% increase of value locked ($114 Billion of total value locked) experiencing explosive mass adoption. Ex: In 2020 the DEX Uniswap supported $58 billion of trading volume (up by 15,000% from 2019), making it the largest decentralized exchange in the crypto world.
SMB owners are excluded from potential economic mobility. Currently almost 2 billion people (24% of the world's population) is unbanked, despite 2/3rds of them owning a mobile phone. In developing countries, censorship can lead to capital controls, poor governance, and corruption costing $3.6 trillion per year. The instability of the national currency due to inflation can make it impossible to maintain a business. High fees to conduct business internationally or to send money back home (remittances). Some people do not have access to banks, do not like using banks, or pass credit checks. Ex: In Saudi Arabia, a women cannot open her own bank account, apply for loans, or insurance.
What it does
Limelight is a crypto defi neobank where SMBs become decentralized autonomous companies.
Decentralized Application: https://limelight_neobank.4everland.app White paper: https://drive.google.com/file/d/1MzEPnkfbP2MlYqz1VpQ0aI7TanuZok-u/view?usp=sharing
DAC framework within Metis's Layer 2 infrastructure allows small businesses can create roles for owners, admins, executives, and employees. Decentralized payroll, rewards, penalties, and taxes with abilities to hire employees and measure work performance with fewer regulatory hurdles without involving a middleman, intermediary, or centralized authority. Lower overhead costs with no physical branches. Anyone with a smartphone and internet connection can participate as long as they have a non-custodial crypto wallet fostering adoption.
Each SMB gets a ranking based on # of members and percentage with reputation powers, token rewards and staking. Building a community-centric product with events like weekly lucky draws for 50 Metis tokens distributed to the wallets of every member of the winning DAC. Opportunities to increase DAC mining Power(P) by inviting friends and lucky draws.
Limelight is a P2P tokenized money market liquidity pool protocol on Ethereum powered by smart contracts. Lenders provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an over collateralized loan. Liquidity mining where depositing or lending $LIME token assets with a mining mechanism to provide liquidity for the product’s fund pool and get rewarded. With our Limelight pro plan, you can take your small business finance operations to the next level faster. Subscription based revenue model with concentrated liquidity and fee tiers allows liquidity providers to be remunerated according to the level of risk they take. Anyone can become a Limelight LP by depositing tokens into the smart contract. This lets users compare staking and non-staking benefits. Rewards to continue staking with low prices thanks to Metis layer2 solution: $2.50 / ERC20 transfers and $5.00 / NFT minting. Metis has roughly the same cost as other optimistic rollups (Optimism/Arbitrum): https://l2fees.info/
Limelight Visa cards powered by the crypto from your Limelight account balance. Crypto lending platform where revenue streams can be earned from both borrowers and lenders. In the case of lenders, they earn a specific percentage of interest earned by the lenders. Compound Finance, for example, currently offers an APY of 8.19% for lending DAI. If the borrowers default on loans, they possess the collateral deposited by them. Governed by smart contracts to lessen counter-party risk and fraud where there is no risk of the borrower failing to repay their debt as people can withdraw staked assets at any time. Comes with 3 options with different benefits up to 8% cash backs, and no transaction fees. Swap assets, and earn 3% crypto rewards with Limelight Rewards. Track your transactions with spending summaries, transaction reciepts, and instant notifications through your mobile app.
How we built it
United space ship: Limelight.metis is built on the Ethereum blockchain. Deterministic smart contracts that are transparent, traceable, and verifiable publicly visible. Smart contracts only execute when both parties fulfill requirements eliminating counterparty failure.
METIS is an Ethereum Layer 2 Optimistic Rollup Platform for Web 3.0 Economy with its own $METIS utility token to help boost the speed, lower the cost of transactions on Ethereum while being more environmentally friendly. Slow transaction speeds and high gas fees as 96% of transactions are on Ethereum and the transactions pile up in the memory pools of crowded chains. The laws of supply and demand will cause the gas fees to only increase in the future. With over $40 billion worth of cryptocurrencies are traded every day, the volatile price fluctuations causes unneccessary currency risk, makes it difficult to interact with, and hinders long term dapp development that require price stability.
Built in IPFS storage integration with one-click smart contracts tokenization. Data is cryptographically hashed, and given a unique content identifier (CID) making it resistant to tampering and censorship. Ethereum Dapp ported to the EVM-compatible Metis Testnet (Stardust) and in the future mainnet (Andromeda) with scalable software for demand for multiple chains, virtual machines, or sequencers. Metis inherits the security and decentralization features of L1 Ethereum with fraud proofs and peer Nodes to verify financial transactions with bridge.metis.io to connect L1 and L2 mainnets Andromeda and Ethereum. Collects and batches transactions where transactions costs are split between the entire batch to avoid bottlenecks. Gas prices are magnitudes cheaper and faster transactions (seconds as opposed to few minutes on Ethereum).
The initial distribution of 100,000,000 $LIME tokens:
Lime utility token, it will be used as: Gas cost on layer2, Staking for rewards, Staking as the commitment of validators, Governance token, or for Community development. For the revenue model, the first and most direct one is the gas cost on layer2, every transaction on layer2 will need to pay Metis token as the gas cost. For some of the services in the DAC, you will need to pay 10 Metis token to gain the access from Polis and limelight.metis. This includes future plans for lucky draws and rewards releasing schedule for rewards/second starting with 0.0185 $METIS/per second.
Founding Team: 7% LimeDAC Foundation: 4% Advisors: 1.5% Angel Investors: 1% Seed Investors: 6% Private Investors: 7% Strategic Investors: 1.5% Community Star: 3% Paid Network IDO: 0.2% Airdrop: 6% Liquidity Reserve: 6% Community Development: 9% (6% over year1) Remaining 48%: Minted over ten years following Limelight ETH mainnet launch.
Challenges we ran into
Implementing the governance token and defi stablecoin.
Governance token for decentralization where stakeholders vote, maintain, and manage by providing voting rights, offering incentives (lower fees, pay off interest accured), and their own domain for on-chain identity (ex:lucy.limelight or alice.limelight) with LimeDAO. The instability of a fluctuating dollar makes it impossible to start a business. Over collateralized stablecoin soft-pegged 1:1 to USD. Users can lend, earn passive income, to facilitate SMB functionalities. Balance economic incentives and price stability. Responsiveness of the system to price action.
What we learned
From instant transaction settlements, to collateralizing digital assets and no credit checks, DAC neobank can improve international money transfers like remittances closing physical barriers.
What's next for U.S.S. Limelight: The Next Generation
To the moon together on USS Limelight:
- Marketing Whitepaper & Airdrop Campaign
- Genesi DAC/VC Funding to hire Developers
- Token Launch & LIME/ETH on Metis' Netswap
- L2 Integration with Optimism/Arbitrum
- Web3 Financial Legal Counsel and Audit
- Deploy Testnet Stardust/Mainnet Andromeda