Commodities Future's Market using Alphapoint marketplace and Nebulas Smart Contracts
MARKET MAKING: Track Industrial and Agricultural commodities Futures with tokens.
The Liquefy System tracks Commodities Futures Contracts with Tokens on the AlphaPoint Market Place. The Futures contract is entered by two parties and articulated via a SmartContract hosted on another blockchain such as Ethereum (Not Implemented). Once the futures contract has been entered, both parties have to buy and sell at the agreed-upon price, irrespective of what the actual market price is at the contract execution date.
On AlphaPoint's System, the token can be traded and it's price may affected by factors such as Politics, Weather , Legislation ETC. For example a Futures contract Represented by the token CRUDE_XYAB:USD would track the price of a futures contract to be executed on June 20 2020. It's price would fluctuate depending on factors such as Wars in oil producing countries, Legislation curbing fossil fuel use in the US etc. The traders can trade the token on the AlphaPoint Marketplace and the final holders of the Corresponding SmartContract would then execute it at the given date.
Liquefy's system acts as a Market Maker as allowing Traders to track various tokens. Users can Submit Bid/Sell offers. We plan to integrate with Ethereum to create SmartContracts representing the futures
We used Nebulas Smart Contracts to engage in the Prediction Markets. Prediction markets harness the wisdom of the crowds potentially leading to more precise results. The accuracy of prediction markets relies on individuals having specialized knowledge. Sellers (who are likely the commodities producers) know the factors that affect the price of their commodities - for example a grape farmer who supplies to local wineries knows how the weather patterns affect the grapes and in turn the price of wine. On Liquefy, participants join betting party and after the open period is over, a smart contract is created on the blockchain. Their funds are withdrawn depending on how much they wagered and held by the contract until the expiry date. On the expiration date, the contract payouts are automatically executed based on the output of an Oracle.