Liquidity Automation Infrastructure for the Sharing Economy
Abstract
With a global distribution network of devices across a myriad of sectors like aviation, education and healthcare, Netspot Solutions is a leader in device-sharing. With the advent of the sharing economy over the last few decades, Netspot has managed to leverage this self-propagating and sustainable economy to take steps towards its vision to create and implement a fully decentralized device-sharing network.
Through application of blockchain technology and machine learning, NetSpot enables administrators to have full control over the process of physically managing, distributing, charging, and monitoring an organisation’s fleet of devices. The solution also enables easy, remote and unattended content distribution (including Operating System deployment) across all devices in the global network within minutes.
In order to promote greater sustainability and ensure high liquidity in a high-volume transactional environment, NetSwap utilizes liquidity pools and decentralised exchanges in its ecosystem. A native token, NETT, will be the utility and transactional medium of exchange for this decentralised network.
Background
With UniSwap achieving phenomenal market success and the rapid uptake of such decentralised exchanges (DEXes), the idea of using a DEX was incorporated into the Netspot timeline.
Similar to UniSwap, we wanted to provide liquidity without a middleman and bypass unnecessary transaction fees or delays as experienced in centralised exchanges. Essentially, with the autonomous and interoperable Netspot ecosystem, we hoped to provide users with a seamless, one-click interaction that can allow them to swap tokens directly between wallets.
NetSwap was thus conceptualised in the early days of the Netspot project as a direct means of allowing millions of users to trustlessly interact with the Netspot Network and economy with no external intervention.
NETSWAP DEX
The NetSwap DEX is built on Ethereum (ERC20 tokens) and will possess core functionalities similar to those of leading DEXes such as Uniswap and Sushiswap: the ability to facilitate token swaps and liquidity pool providence. yNET will serve as a native token that acts as both an incentive and transactional medium within the DEX. These NETT tokens can be used in user-to-user transactions securely, without fear of highly fluctuating token values and volumes.
To further guarantee stability, NetSwap has several proprietary decentralised products; products such as NetVault will ride on the liquidity pool and concepts of collateralization, while NetInsure will provide the hardware insurance required for the hardware leasing risk-related issues of NetSpot.
NetVault
The NetSpot economy allows vendors to provide physical hardware leasing platforms, which in turn are leased from corporations such as M3 Technologies.
But in order to transact and purchase/lease either vendor or user related services, there is a requirement to stake or provide a form of collateral on the network. To support such collateralisation, the blockchain industry has introduced a novel concept of staking vaults, which essentially locks up collateral with transparent, specified timeframes. With an open ledger, all users are privy to the collaterals placed and the network can therefore guarantee that the purchaser/borrower is sufficiently collateralized to carry out certain transactions.
Therefore, NetSpot has launched NetVault, a decentralised vault residing on the NetSwap layer that will reward collateralisation with yNET tokens. These yNET tokens also serve as incentives for users to stake and use the NetSpot Network. On the other hand, the collateral would be used for providing liquidity to the underlying NETT economy, hence providing a ‘circular’, sustainable economy.
NetInsure
Collateralisation carries minor risks associated with total loss or impermanent losses from token value fluctuations. Other unforeseen issues may also include network interruptions or hacks. To encourage mass adoption of the system, it is essential to introduce a form of insurance to protect users from “black swan” outcomes.
Here, we have NetInsure, which incentivizes users who wish to take on the risk of insuring against less probable outcomes by staking and contributing to the NetInsure product. Terms of the insurance are stated clearly, alongside the manner in which proceeds will be tapped on and distributed in the event of a “black swan”.
The system is also well designed to ensure that NetInsure users will not be unfairly compensated or experience asymmetrical levels of losses corresponding to the overall integrity and risk of the network.
As with NetVault, users will be rewarded with yNET tokens via a dynamic mechanism that adjusts incentives based on overall risks metrics within the system.
yNET Token (yNET)
yNet is an ERC20 token for NetSwap, which theoretically derives its market value based on market forces and size of the ecosystem in which it is used.
As a governance token, it accords holders the right to participate in voting in the decentralised process of NetSwap. Holders would also qualify for a share of additional transactional fees of swapping within NetSwap as well as incentives from being a contributor/user of NetVault and Netinsure.
Do stay tuned to our Medium page for more details regarding the fee and incentive structure of NetSwap, which will soon be released prior to the launch of the NetSwap ecosystem!
