“Bridging the gap between Crypto Muggles and Degen Wizards”
“Decentralized finance (commonly referred to as DeFi) is an experimental form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks, and instead utilizes smart contracts on blockchains, the most common being Ethereum. DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on a range of assets using derivatives, trade cryptocurrencies, insure against risks, and earn interest in a savings-like account.”
Decentralized finance, better known as “DeFi,” was first released as a product implementation in 2015 by MakerDao and has since then grown into what many have called the “next phase” in the evolution of digital assets and blockchain technology.
Although the big picture and proof of concept projects didn’t really start to form until mid-2020 (and most would agree that DeFi is still in its infancy stages), DeFi has grown into its own market independence — within the realms of the greater crypto industry. With a staggering market cap of $19 billion (approx. a 500%+ increase in market cap over the last six months alone), DeFi has quickly cemented itself as one of the next generation implementations of blockchain technology within finance. DeFi is still far from final form and very much experimental; however, with projects like YFI, Compound, Uniswap, MakerDao, Synthetix, UMA protocol, Curve, AAVE, and Balancer leading the curve towards the innovation of the bleeding-est edge of crypto, we are excited to see how DeFi evolves and matures.
New Tech, Existing Problems
Yet… DeFi and crypto, still as a whole, struggle with similar problems as the other innovative technologies before them. First, there’s a high barrier-to-entry, due largely in part to a steep learning curve in a technology that is constantly evolving. UI and UX is still a big issue for new consumers in the path towards mass adoption of decentralized finance, blockchain technology, and other digital assets. Having to jump from one screen to the next between Metamask, wallets, explorers, dapps, exchanges and much more in an effort to look up gas prices, monitor network transactions, cancel pending transactions, customize nonces, staking, borrowing, trading, farming, insurance, governance, and many other features that come with understanding the technology as a whole, has made it virtually impossible for the average individual to become an active participant. We see this recurring situation with every new leap forward in innovation through the discovery of new technologies — electricity, steam engines, the combustion engine, computers, the internet, blockchain, etc… We believe this to be a compromise made by the innovators of these new technologies, as their first primary audience has always been those who are deeply immersed in the tech itself.
Our Idea and Solution
Supreme Finance is simply an adoption-focused DeFi protocol on which we intend to create a fully-integrated user-friendly platform/service, to connect as many crypto-muggles with the many decentralized financial products and services already on the market. Our goal is to make DeFi simple and easier to use — to create a better user experience for those who are intimidated by the learning-curve, therefore lowering the barrier-to-entry. We’ll do this by focusing not only on innovating and creating a product no one has ever created before on the bleeding-est edge, but also by working towards mass adoption of just the bleeding-edge that already exists and to make that experience as seamless as possible for the user.
Of course, for the crypto-muggle audience, we aim to provide a simplified system with a much lower learning curve, but we realize that this is only a temporary solution to this pre-existing problem — at least until crypto adoption has become so high that even our parents transact on-chain for their financial needs. So until then, we will be rolling out a series of features and upgrades (using community feedback loops) to create a frictionless bridge for adoption, required for those less fluent in crypto.
Now, the initial key factor that will dictate the growth of our ecosystem will not only be from the products we build or the UI/UX features we upgrade. It won’t matter whether we create the slickest UI in all of cryptoland if we cannot create a strong bridge of community between the Wizards and Muggles.
Education and information will play a key factor in the adoption of DeFi as an alternative means to traditional finance or traditional markets. We believe that no matter how advanced a technology becomes, it will not see exponential growth or mass adoption unless 3 things happen in parallel.
- There must be proper incentivization for the general public to adopt a new system, even at the loss of convenience.
- Those new adopters must then be educated in steps or phases so that they can absorb the information required to understand how the technology or product works.
- Last but not least, those new adopters must then have a reason to want to tell others around them about the benefits that they have reaped by adopting the new technology.
With Uniswap, aka Uni, liquidity providers earn the pool’s trading fees when they are actively providing liquidity whilst risking dilution to bigger whales with badder wallets. With Sushi, liquidity providers earn the pool’s trading fees (like Uni), but with $SUSHI as the reward, making it possible for you to take your earned $SUSHI and stake it (allowing you to continuously earn rewards in the long run). This still means that your holdings and earnings are diluted gradually.
At Supreme, our team believes that the early adopters who support you while you are still a lump of coal are the ones who should be especially rewarded. They should be rewarded for their higher risk appetite as well as their support of the project in its infancy stages and faith in the project as it grows. In addition, early supporters, campaigners, advocates, and investors should have a clear incentive to continue to nurture and grow the community.
Much like Uni and Sushi, Supreme liquidity providers earn a portion of the pool’s trading fees (70%), with $HYPE as the reward. $HYPE will be issued as an ERC-20, but, unlike Uni & Sushi, initial liquidity providers who come on early earn a portion of the pool’s trading fees (30%) with $HYPEX.
$HYPEX will be issued as an ERC-20 and will only be available in supply via the initial liquidity pools. $HYPEX will not be listed on Uniswap and will be available for a 1:1 swap at any given point in time via an onchain escrow swap. Tokens swapped out will be taken out of circulation and the % of fees to be accrued will be split into two pools. 50% will be reinjected into existing or newly created rewards pools acting as LP incentives for staking on the platform. The 30% will be routed to a community governance controlled wallet to serve as an additional treasury for the protocol. The remaining 20% will be routed to a dev pool. We feel that this creates a way to reward long-term engagement with the protocol from day one and that it will prevent dilution of early-stage supporters whilst still giving them the option to get out and still maintaining enough incentive for whales and other future stage investors with bigger capital.
Additionally, when full community governance is implemented, 95% of governance tokens for the protocol (which will be issued at a future date) will be distributed via an airdrop, with 5% as the team supply. 70% of the supply will be distributed to the holders of $HYPE, the main protocol token, and 25% to the holders of $HYPEX. This means that if everyone sells their $HYPEX except for a few people, those few will have rights to the 25% of the governance token supply because they supported the protocol without waiver from the initial stages.
In order to better address project needs and shape the general project direction, as well as promote the development of some of the next dapps for the protocol, we have decided to have a centralized team behind the project.
After having observed the chaos that comes from launching a project, full on-chain governance from day one enables the possibility of many inefficiencies in development — attack vectors, economic exploits, and the possibility of programming factors that rely on the network traffic of the protocol, which would in turn require many possible forks of the network. With full on-chain governance, necessary and swift adjustments, which could be decided between a 5–10 person group within a few minutes, could take days through a governance vote on-chain.
Let us be clear — our goal is to reach full decentralization with community governance. However, we are also realists and have made risk/gain assessments, determining that the protocol and its community must mature enough to constitute the justification of fully on-chain governance implementation. This being said, we will, in the near future, be implementing a fully decentralized community governance system.
We understand that there are many existing liquidity providers who are already providing liquidity on other Dexes like Uni, Aave, or Sushi. We understand that we must make the barrier to entry for existing LPs as low as possible.
45% of the total supply of $HYPE will be put into a time-locked escrow that will allow a 1:1 swap for 1 $HYPEX(ERC-20) to $HYPE(ERC-20).(Logic mentioned above)
45% of the total supply will be distributed as follows:
30% of total supply via Uniswap LPs(5 pools)
15% of total supply via Sushi LPs(3 pools)
After the initial distribution period of 14 days, after every block, 100 $HYPE will be created and these tokens will be equally distributed to the contributors of the respective supported pools.
Once governance is live, the community will have full control of adding or removing pools, as well as the weighted reward of the pools, and even new incentivization methods altogether. Capitalist democracy at its finest.
Initial Token Supply: 50,000,000
Ticker/s: HYPE (ERC-20)
One-way 1:1 (HYPEX to HYPE) swap via platform possible via on-chain escrow
Initial Fair Distribution: 45%
Advisors/Angel Investors (Friends/Family): 5%
Partnership Reserve: 5%
Marketing Reserve: 5%
New Feature Reserve: 15%
Centralized Exchange Liquidity Reserve: 15%
Fair Distribution: 45%
*** All reserves not used in the first 100 days will either be burned or injected into a pool under community governance. Any tokens being burned or reallocated will be publicly announced via our social channels at least 24 hours prior to execution.***
With Uniswap, 0.3% of all trading fees in any pool are proportionately distributed to the pool’s liquidity providers. With Sushiswap, 0.25% go directly to the active liquidity providers, while the remaining 0.05% get converted back to $SUSHI and distributed to the $SUSHI holders.
With Supreme, 0.25% goes directly to the active LPs of the pool. And 0.05% gets split with a 7/3 split amongst $HYPE holders and original $HYPEX holders.
Within 5000 blocks of the initial liquidity pools finishing rewards distribution, there will be a migration of all the liquidity tokens staked onto Supreme Swap contracts. Uniswap LP tokens and Sushiswap LP tokens staked on Supreme will have to be redeemed on each of the respective platforms for each of the token pairs, resulting in the creation of new liquidity pools from those tokens. These pools will be identical to those on Uniswap or Sushiswap in nature with the change in configuration that fees accrued will be distributed as written above. Once migration has been successfully executed, this will provide the liquidity to initialize the first set of Supreme pools and products, making the protocol/platform ready for business right away.
Technically speaking, any and all protocols able to connect to Uniswap or any other Uniswap fork should have no reason not to be able to integrate with Supreme. Supreme will be offering everything that Uniswap and Sushiswap have to offer and even more. To start, Supreme will be offering ERC-20 support in the very near future which is something neither Uniswap or Sushiswap offers. In the future, Supreme will support inter-blockchain communications, in an effort to provide liquidity provision across multiple blockchains.
We also have a mobile app in the works which will include the following features:
- Lending/Borrowing (via APIs/products from various protocols)
- Options and other DeFi products (some will be designed by the team but mostly via APIs/products from various protocols)
- Inter-blockchain Escrow (Wrapper)
- Voting for on-chain Governance
As great as the fair distribution model is (no VCs, no pre-mine, no advisors), we believe that it still fails in providing a sustainable model until a project hits their BEP as a business. It’s all 0 sum and we believe that both the team and other contributors must have added protections and incentives to keep going when the going gets rough. Like our predecessors before us, we will be implementing a dev pool (which will be governed via community governance after governance implementation). 10% of all rewards will be collected, 9% distributed into the dev pool and 1% used to swap out into yUSD as a cash reserve in case of any future emergencies. We have chosen to completely disclose all token distributions transparently, and for all reserves, including team supply, advisory supply, and any tokens owned by the project and it’s members, to be fully disclosed, including wallet addresses.