White Paper
White Paper
1. iDOL
2. Lien FairSwap
3. Parameter Tuning
iDOL White Paper

Abstract

In this paper, we propose a decentralized finance (DeFi) platform that provides a new type of stable coin. The platform, called Lien , first slices Ether into two tranches of derivatives, Solid Bond Token (SBT) and Liquid Bond Token (LBT). Almost all the exchange-rate risk in terms of the fiat value of Ether is absorbed by LBT, which will make the price of SBT stable. Our stable coin, the iDOL token, is created as a representative money backed by SBT. Unlike other extant crypto collateralized stable coins, our system requires no over-collateralization, and no manual adjustment of parameters is necessary to maintain the pegged exchange rate, with the price of the iDOL token automatically adjusted to its target level through a market mechanism


Lien FairSwap White Paper

Abstract

In our first white paper (Lien Protocol 2020), we proposed a new type of stable coin, iDOL. The price stability of iDOL is ensured by speculators who are willing to take on the risk associated with the price fluctuation of Ether (ETH). This is achieved by those speculators holding a derivative token, named Liquid Bond Token (LBT). However, as LBT is a brand new class of derivative token, currently there is no market where the token is actively traded.

In this paper, we propose Lien FairSwap, a decentralized exchange (DEX) platform that provides an opportunity to trade cryptoassets based on the Constant Product Market Maker model. The platform also incorporates the idea of frequent batch auction and is designed to be robust against front-running. Our design also introduces a mechanism for dynamically adjusting the commission rates based on the market condition. While the platform will specifically serve as a market for trading LBTs within the Lien protocol, other decentralized finance (DeFi) protocols may also benefit from the use of the core mechanisms utilized by the platform.


Parameter Tuning in the Lien protocol

Abstract

Our stable coin system, the Lien protocol, is going to be deployed on the Ethereum mainnet very soon. In this white paper, we explain the detailed parameter selection processes implemented in the protocol. This paper complements our previous two white papers, Lien Protocol (2020a,b), which described the main ideas behind the protocol while examining and verifying the protocol performance.


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