ADFS：A Decentralized Financial System
ADFS full name: a decentralized financial system
2008The subprime mortgage crisis broke out in, which triggered the global economic crisis.The storm appeared in the U.S. subprime housing credit market in the early stage, a large number of borrowers failed to repay on time, gradually causing a liquidity crisis.
In order to alleviate the crisis, the government issued a large number of currency to rescue the market
This financial crisis has exposed the fatal problems of the centralized financial system, which is monopolized and managed by the traditional financial institutions and the government
Due to the lack of trust between the two parties, the central institution or the government is often required to guarantee, but this does not guarantee that both parties will perform the contract, or the central institution and the government will play a positive role.
In November 2008, after the outbreak of the global financial crisis, there was a pseudonym: Nakamoto.
In the Internet published a shocking paper, the main expression of the paper is: the world’s financial system is not open, unscientific, opaque, imperfect, very backward.
There are so many currencies in various countries in the world, and each country’s currency is just a circulation symbol. Once the country’s credit guarantee is lost, they are a pile of waste paper.Why not invent a currency system that is universal in the world and no country?
The paper points out that: in the future, a new financial payment method will be born on the Internet, which is based on cryptography, supported by blockchain technology, and traded by peer-to-peer P2P. It clearly describes the theoretical model of bitcoin based on blockchain technology.
The bitcoin system proposed in this paper has the following properties:
(1) Decentralization: there is no publisher, and the whole network is composed of users, which is stored and operated in P2P mode,
In the traditional financial model, money is issued by government agencies, and the basic personal information and transfer transaction information of both parties are mastered in the database of banks and other third-party institutions, which are centrally managed by these institutions.
These institutions have complete information and can make more accurate credit evaluation for both sides of the transaction and conduct fair arbitration after disputes.Therefore, the two sides of the transaction will conduct the transaction after their intervention and guarantee.Both sides of the transaction can only access their own data, which is the centralized management mode.
However, in the decentralized mode of bitcoin, institutions have neither the right to issue bitcoin nor the right to record and manage user information.
Bitcoin network adopts distributed accounting method to ensure that every transaction is publicly recorded and synchronized to the whole blockchain, so that everyone can check and see.
At the same time, because bitcoin blockchain adopts a special data structure and a consensus algorithm using workload proof, it ensures that the transaction records in the block cannot be tampered with.
This mode of operation has strong credibility and does not need the intervention of a third party.
(2) Global circulation: any computer in the world can manufacture, sell, purchase and collect bitcoin as long as it downloads the bitcoin client
(3) Secure holding: the private key is required to manipulate bitcoin, which can be stored in any storage medium in isolation.No one can get it except the user himself.The user’s bitcoin is controlled by the user’s private key and can be stored in any storage medium in isolation. No one can charge for it.Keeping the private key well does not mean that the user has absolute sovereignty over the asset.
(4) Low transaction cost: bitcoin can be remitted free of charge, but in the end, about 0.001 bitcoin will be charged for each transaction to ensure faster transaction execution.The transaction fee collected will be used as a reward to the subsequent users who make bitcoin.
(5) Convenient and quick transaction transfer: as long as you know the other party’s account address, you can transfer, convenient and quick
(6) To prevent inflation: the Chinese people’s organization, the government and the currency are indiscriminately distributed, while bitcoin only generates 21 million bitcoins in the world. From the date of release, 50 bitcoins will be generated every 10 minutes, but the output will be halved every four years. That is to say, after four years of release, 25 bitcoins will be generated every 10 minutes, and after eight years of release, 12.5 bitcoins will be generated every 10 minutesPeople who make bitcoin.
(7) Anonymity:
Bitcoin uses cryptography to confirm personal identity and encrypt assets.To establish an account in the bitcoin block network, you don’t need to upload any proof of identity background. As long as you have a private key, you can really control the bitcoin in the corresponding address.All transactions are conducted anonymously. When other users query the block transaction records, they can only query the amount of bitcoin transferred from one address to another, and can not lock the two parties to a specific person, so they will not disclose personal information.At the same time, bitcoin is not limited by time and space, and can circulate around the world. Its liquidity is unmatched by traditional currency.
2009On January 3, 2008, bitcoin was finally born, which was not controlled by the central bank and any financial institutions. The inventor, Nakamoto, created the first block in the world, which was named as Genesis block. The underlying technology of bitcoin is blockchain technology.
Bitcoin uses blockchain technology to build a decentralized payment system based on encryption technology, which solves the problem of transaction trust.
So far, bitcoin, a point-to-point decentralized e-cash payment system, has been officially born. Since then, the decentralized financial revolution has begun, and it has been as long as 12 years.
With the birth of bitcoin and the development of the industry in the past 12 years, until around 2020, the hottest word in the whole digital currency industry, defi, has emerged.
DEFI, it means decentralized finance, or open finance,
The emergence of defi aims to reconstruct the financial world and create a new financial system.
What is defi and what is de Sinochem finance?
For the sake of simplicity and easy understanding, the professor will focus on the most influential institution in the traditional financial system — the bank, and discuss its core development with you.
As we all know, banks are giants in the financial industry. They provide convenient payment, savings and credit services for individuals, enterprises, other financial institutions and even the government.
Bank is the key component of circulation machine
The circulation machine is the financial industry, which provides value transfer (deposits, withdrawals, transfers, loans) and other services, so that funds can flow freely around the world.
However, banks are managed by people and regulated by policies, so they are vulnerable to human related risks, such as mismanagement and corruption.
08The global financial crisis in is the embodiment of excessive risk preference of banks, and the government was forced to provide large-scale assistance to banks.The crisis exposed the defects of the traditional financial system and highlighted the necessity of improving the financial system.
The emergence of defi is an attempt to create a better financial environment by using the emerging Internet, blockchain and smart contract technology.
In particular, it optimizes and improves three key parts of the banking system
1.Payment & clearing system (remittance)
2.Accessibility
3.Centralization & Transparency
First, payment and clearing system
In today’s financial system, if you want to remit money to someone or an enterprise in another country, you should be able to deeply feel the pain — —
Remittances involving banks around the world usually take several working days to complete, and will include a wide range of handling charges.
To make matters worse, there may also be issues related to the documentation required for remittances, compliance with anti money laundering laws, privacy, etc.
For example, if you live in the United States and want to transfer $1000 from your U.S. bank account to your friend’s account in Australia, there are usually three kinds of handling charges: your bank exchange rate, international wire transfer outward handling charge and international wire transfer inward handling charge.
In addition, it will take several working days for the payee to receive the money, depending on the location of the receiving bank.
Cryptocurrency, which promotes the defi revolution, allows you to bypass middlemen who capture a large share of profits in the transfer process.Transfers are also likely to be faster — your transfer transaction will be processed unconditionally, and you will only have to pay lower fees than the bank.
For example, it only takes 15 seconds to 5 minutes to transfer cryptocurrency to any account in the world (depending on various factors) and pays a small handling fee (for example, about $0.02 on Ethereum).
Second, accessibility
If you have a bank account, you are very lucky, and you can get financial services provided by the bank, such as opening an account, lending, investing, etc.
However, there are more less fortunate people in the world who don’t even have the most basic savings accounts.
According to the statistics of the world bank, as of 2017, there were 1.7 billion people in the world who did not hold accounts with financial institutions, and more than half of them came from developing countries.
They are mainly from poor families. The main reasons why they don’t have bank accounts include poverty, geographical location and trust problems.
For the 1.7 billion people who don’t have a bank account, access to banking is very difficult — but defi can make it easy.
Access to defi (our ADFS decentralized financial system) only requires users to have a mobile phone connected to the Internet, and does not need to go through a lengthy verification process.
According to the statistics of the world bank, among the 1.7 billion people without bank accounts, two-thirds of them have mobile phones. Therefore, different from traditional banks, defi can become an entrance for these people to obtain financial products.
Defi, decentralized finance, represents a revolution of decentralized finance, which aims to promote borderless, non censorship and barrier free.
The defi agreement will not discriminate against anyone, but will create a fair participation environment and provide fair financial services for everyone in the world.
Third, Centralization & transparency
It is undeniable that traditional financial institutions, such as banks, which are regulated and abide by government laws and regulations, are one of the safest places to deposit funds.
But they are not without flaws — even big banks can fail.Our domestic laws allow banks to go bankrupt, and in China, bank failures are common.
In 2008, Washington Mutual, with deposits of more than $188 billion, and Lehman Brothers, with assets of more than $639 billion, both collapsed.
In the United States alone, more than 500 banks have failed in the past.
Banks are one of the central nodes leading to the collapse of the financial system. The collapse of Lehman Brothers triggered the financial crisis in 2008.
Therefore, it is very dangerous to concentrate power and capital in the hands of banks.Judging from past events, this view is entirely correct.
Transparency is also closely related to this — we ordinary investors can not fully understand the operation mode of financial institutions.
A series of events that led to the 2008 financial crisis included credit rating agencies, which gave AAA rating (the best and safest investment) to high-risk mortgage-backed securities.
Defi will be different in this respect.Most of the defi protocols built on public blockchains (such as Ethereum) are open source, which are easy to audit and enhance transparency.
These agreements usually have decentralized governance organizations to ensure that everyone knows what’s going on and that no malicious actor can make malicious decisions alone.For example, the developers of ADFs financial system come from all over the world and are completely decentralized. All developers can audit, supervise and audit each other to ensure that there are no loopholes or bugs.Every developer knows.
The ADFs protocol of the defi decentralized financial system will be written as a line of code — you can’t cheat the code, because it treats every participant equally, not differently.The code runs exactly the way it was written.
In the final analysis, the biggest advantage of the defi decentralized financial system adfsjfd is that it can eliminate intermediaries and operate in a zero review environment.
For example, as mentioned above, market friction, inaccessibility and government and regulatory uncertainty are some of the major problems that plague the current banking system.
In the world, not everyone can enjoy the services in the current banking system — it is difficult for people who can’t get access to banking services to participate fairly.
Defi, ADFs, decentralized finance, this decentralized financial revolution is to bridge these gaps, so that everyone in the world can have fair access to financial services, and those who participate do not need to accept any form of censorship.
In short, defi opens a huge window of opportunity, allowing users to use its financial services without any restrictions on race, religion, age, nationality, geography, etc.
Decentralized financial revolution movement (ADFs) is a financial revolution movement that enables global users to use financial derivatives services such as lending, trading, financing, insurance and so on without relying on centralized entities.
The decentralized financial system of ADFs was born under such a background. The full name of ADFs is: a decentralized financial system, which means a decentralized financial system in Chinese translation.
It is a decentralized financial system created and developed by a group of geeks and enthusiasts in various countries around the world. It is based on eth Ethereum and adopts the way of blockchain underlying technology + smart contract.
It is open to all people in the world. Geeks, technology developers, fans and supporters all over the world work together to maintain, promote and promote the brand!
The enthusiasts who participate in the decentralized financial system of ADFs oppose the centralized control of traditional financial institutions and the government. They love freedom, democracy and pursue equality!
ADFS business model
ADFs is the governance token in the decentralized financial system of ADFs, with a total amount of 21 million and no additional issuance.
Token distribution mode:
Private placement: 3%
Initial circulation: 2%
Development team: 5%
Mining output: 90%
ADFs aims to create an international, democratic, free and fair financial system. In terms of token distribution, 90% of the products are produced by mining. There are few teams, developers, private placement and no pre excavation. It truly embodies decentralization and distribution, and can truly achieve equal wealth growth for all participants.)
Usage scenarios of ADFs token
1ADFs, the whole ecosystem of decentralized financial system (mining, lending, insurance, voting, financial derivatives, lottery, etc.)
2The cost of all products in the decentralized financial system of ADFs will be shared with ADFs, supporters and contributors for a long time.
3ADFs can participate in the flow mining in ADFs system.
4ADFs is an open and free decentralized financial system that needs the participation of huge users. Therefore, it needs the joint governance of coin holders to determine the expansion and growth of this system.
5ADFs holders can participate in voting decision, product iteration, behavior incentive parameters, token economic model parameters through pledge.
ADFs core products of decentralized financial system
1Liquidity mining
In the first stage of the decentralized financial system of ADFs, the initial governance token ADFs will be generated through liquidity mining, and a large number of users and funds will be attracted to participate in the decentralized financial revolution.The initial token generated by liquidity mining is a more fair and transparent way, and can quickly help ADFs obtain initial users.
2Revenue aggregator
ADFs decentralized financial system income aggregator is a kind of income aggregator which can automatically select the highest income. Its goal is to maximize the income for holding assets in a lossless way.It will automatically provide the list of revenue strategies that are considered to be the best in the current market based on procedural screening, and it will also find cross agreement arbitrage opportunities.
In addition, users are allowed to provide their own strategies (they need to hold a certain ADFs token). After the community vote is passed as an optional revenue strategy, the policy proposer can share the revenue in the policy pool.
3, insurance
For the insurance business of the decentralized financial system of ADFs, KYC is not required to participate in the insurance of ADFs. The scope of business covered includes contracts on the chain and assets on the chain, that is, it can underwrite the risk of contract security accident and the credit risk of assets.An insurer can become an insurer only by depositing assets of stable value into the “underwriting pool”.The insured only needs to deposit risk assets in the “Insured pool” to buy insurance.The insured pool will pay the premium to the underwriting pool on a regular basis.When a risk occurs, the insured can apply to the claims Committee for a claim. After the claim is approved, the corresponding assets in the underwriting pool will be paid to the insured pool.
4Aggregate lending
The one click aggregation lending service launched by ADFs decentralized financial system can aggregate some of the current mainstream defi lending platforms, expand the underlying assets that can be used for lending, enhance the asset liquidity of users, optimize the best interest rate, and reduce the borrowing cost of users.At the same time, the occurrence of chain lending behavior, as well as good repayment performance, can participate in mining behavior as “credit behavior”.
In the roadmap of ADFs decentralized financial system, we will develop an online non guaranteed credit loan agreement based on trusted Oracle according to the progress, which will open a new chain lending market and greatly increase the scale of chain lending.The goal of the product is to desensitize the data of the centralized data provider under the chain through trusted computing, calculate the consumer credit risk, and then transfer it into the credit loan agreement to connect the credit behavior under the chain and the financial behavior on the chain.
5, cross chain aggregator, support multi chain currency access
The decentralized financial system of ADFs will develop its own token cross chain technology through eth, BNB chain, BTC, wave field chain, Polkadot, etc., and finally realize decentralized asset cross chain.In the cross chain polymerization mining, support eth, HT, BNB and other multi chain mainstream currencies, pledge to produce ADFs.
6ADFs lottery system
The lottery system of the decentralized financial system of ADFs is a decentralized lottery system. It is very simple to participate in the lottery of ADFs — just use ADFs to “buy” the lottery.Each lottery represents a lottery opportunity, and the winning chance is directly proportional to the number of lottery tickets purchased.The attraction of decentralized lotteries is that funds are not handled by middlemen or brokers, but by smart contracts.
7Fund co management system
ADFs decentralized financial system, based on blockchain + smart contract, realizes account co management and asset co management.
Users who participate in the decentralized financial system of ADFs can participate as long as they own the token listed in the ADFs pool. In the first stage, ADFs will support the currency mining based on eth chain. In the second stage, after the cross chain protocol is developed online, they will support the token based on other public chains.
To participate in any financial service in the ADFs decentralized financial system, you don’t need the user’s real name, mobile phone number, email, KYC information to authenticate and verify. For a fully decentralized financial system, you only need to have a decentralized wallet, keep your keys or mnemonics.
All other access and other behaviors run on the Ethereum network. All user behaviors are completed by blockchain + smart contract. On the blockchain, they are completed by code and smart contract. No one can control them.
All game player in the ADFS centralization financial system has any suggestions and constructive suggestions. It needs to be confirmed through community voting, through ADFS token rights, through intelligent contracts on the chain, and the voting can be effectively carried out. If the voting fails, no authority continues, truly centralization, and truly community autonomy. The community has the final say.Everyone has the final say, the user has the final say.
New players, as well as users who want to participate in the decentralized financial system of ADFs, can go to the exchange to buy tokens.
Create your own blockchain account and decentralize your wallet (such as fox plug-in, imtoken, mytoken, wheat wallet, etc.)
ADFs decentralized financial system can establish links with any eth supported decentralized wallet or browser wallet plug-in, which can be linked anytime and anywhere. It’s a real blockchain technology, a real decentralization.
Users hold private key or mnemonic words, and can log in to manage their own assets in any decentralized or semi decentralized wallet supporting eth at any time, anywhere.
It’s very safe. The assets will always be in your account. As long as the private key or mnemonic words are not disclosed, no one else can take your assets.I can’t log in to your account.Real ownership, initiative.
Bitcoin, a revolution of financial decentralization lasting for 12 years, has enabled all people involved in this revolution to achieve equal wealth growth.
The decentralized financial system of ADFs, a revolutionary movement of decentralized finance, has just begun. Welcome to join us. Let’s promote the development of decentralized finance of ADFs in the world. Let’s participate in the great revolution of decentralized finance. Together, we will change the world. We are already changing the world.I believe that after the end of traditional finance, the decentralized finance of ADFs is the world.
