Terrain

RailgunTrader and TerrainCoin work together by creating a Blind Auction OTC-Decentralized Exchange with frequent trading windows to generate fees to develop an Angel Fund for Mode Network protocols

Comment 1

Inspiration

The name Terrain and Railgun Trader draw from Terra Network and the LUNA/TerraUSD DeFi ecosystem that jumpstarted my journey here given the passion of the community and the creativity in the innovative new financial technologies. I love the Optimism and Mode Network mission and hope to contribute to the foundation of a similar DeFi ecosystem on the Optimism Superchain focused on driving new passionate retail investors onboard and building with the Optimism developer community.

https://www.loom.com/share/514f2c608e3d4bee99b2dee38bffadde

What it does

TerrainProtocol

  1. RailgunTrader

RailgunTrader is a decentralized OTC-style exchange with an old NYSE feel to its trade mechanic centered around a Blind Auction and FIFO trade clear function.

-Blind Auction bulk trade windows with closings every 10 minutes. This means you may lock in buy and sell orders into a private orderbook in ten minute windows to accumulate or sell at set prices without signaling your intent like you would the moment an order of any size is placed on an exchange on a token with dedicated close-knit market-makers. -Every 10 minutes, a new trade window opens that you may lock in an order(with a cancellation fee to exit the contract) on the ETH/USDC trading pair, all orders are stored privately in the smart contract. At the end of the 10 minutes all matched orders in a First Match First Trade sequence are processed in two one-way transactions to each participating wallet on all matched orders during the trade window to optimize gas-fees and slippage on purchasing at multiple price points.

  1. TerrainTreasury

-RailgunTrader uses the OP Superchain Fee Sequencer to build up a TerrainTreasury contract designed to develop three assets through trades sent through RailgunTrader. ETH, USDC, and mint an Optimism Superchain token "TerrainCoin" that work together to create an Angel fund for "TerrainCoin" holders. The way it works is half of the ETH/USDC balance in TerrainTreasury (the USDC portion) will become a loan pool.
-The code functionality for a Uniswap/Sushiswap TerrainCoin/USDC liquidity pool is included in the smart contract. TerrainCoin holders can fund the liquidty pool to receive stakeable assets in other Optimism Superchain and Mode Network protocols that allow holders of the Liquidity Pool to angel lend to other protocols from the USDC Loan pool in TerrainTreasury in exchange for farming the protocols native token a-la many of the Terra Network DeFi projects that came out in 2021 around the Anchor Protocol ecosystem.

  1. TerrainCoin

-TerrainCoin is an Optimism Superchain native token owned by, and owned by TerrainTreasury in the class hierarchy and minted by TerrainTreasury in the codebase. It can be used for two purposes, to cover trade fees in RailGun trader or too fund the Angel Fund liquidity pair.
-New TerrainCoin would be minted as ETH/USDC build up in treasury, with the idea it would create "new Terrain" in the Optimism Superchain with treasury assets providing liquidity to DeFi protocols to use to drive revenue or fund transaction activity with each increase in TerrainTreasury or the TerrainCoin/USDC trade pair with ETH in treasury helping tether the value of the asset on every mint(1,000 TerrainCoin for each 1ETH value ETH/USDC accumulated from sequencer fees in treasury) -The liquidity pair MAY NOT be collateralized for self-borrowing as an intentional feature of the design to encourage angel investing for new retail investors and whales on the Optimism Superchain who want to access the orders in the private OTC orderbook or use the functionality to conduct trustless fault-proof on-chain OTC trades at set limit prices rather than go through the negotiation and legal process to purchase from institutional sales teams. -The biggest draw of Railgun Trader is the opportunity to pick up or dump off ETH at massive scale and anonymously between multiple parties over an extended period of time rather than changing hands and price action on an exchange or setting up an off-chain deal that inevitably reveals firm wallets and negotiation time and innate price-slippage dealing with an institutional investor. This is made possible by the orderbook clearing mechanism. Even if 100,000 ETH orders are placed on both sides in a 10-minute window, after the trade window closes all orders are cleared off the order book and only matched orders are transacted so the scale of the total sell and buy pressure is kept anonymous until the sale is made, will ensuring price and minimizing gas fees & MEV/slippage for order placers at low-time frame. Ideally it would be a key tool in any whales bag. -TerrainCoin rebates at 20% of trade fee on completed trades over 10ETH in a trade window and could be collected to cover trade fees or encouraged to angel-invest and fund future Optimism Superchain and Mode Network protocols in the DeFi space by letting them access the USDC loan pool in exchange for letting holders mine native-token at set APY's with the TerrainCoin/USDC liquidity pair.

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