The key features of Deepwaters v1 are:
1. Usage of consensus to ensure the delivery of both Fair Price and Fair Execution to Trader.
2. Order flow immutability. When you place an order, it gets equal priority with all other orders based solely on the temporal order in which they are placed. No one can rearrange orders or act on orders before they are either executed or placed on the public order book.
3. Protection of Liquidity Providers. Instead of their liquidity being treated as sacrificial and traded against by default, Deepwaters implements a number of mechanisms to protect their liquidity from impermanent loss while still rewarding liquidity providers based on volume (see Depositor ). This role is more consistent with their profile as market agnostic yield seekers. It prioritizes capital preservation first, and risk-adjusted yield second.
4. Zero-cost rebalancing over-collateralized exposure tokens with composition protected by solid economic principles.
Deepwaters v2, coming in 2023, will upgrade the Deepwaters architecture to render the distinctions between centralized and decentralized platforms meaningless. It will provide a trustless, massively scalable, non-custodial platform which anyone can validate the operations of, regardless of whether it is deployed in a centralized or decentralized manner. The details of Version 2 will not be further discussed in this document.
Deepwaters is a consensus protected financial ecosystem positioned as a 'middleware layer'. It is designed to utilize both blockchain (on-chain) and traditional (off-chain) methodologies, based on their most well-suited use cases and best industry practices.
To optimize speed without sacrificing trust, Deepwaters employs a rollup strategy on multiple Deepwaters-supported blockchains simultaneously. Transactions get matched off-chain, achieve consensus within the Deepwaters network, and are ultimately settled on their respective origin blockchains in batch.
Deepwaters is a system of decentralized finance (DeFi) applications built on a composable business logic layer. Using this hybrid architecture allows for Deepwaters to perform batched transactions across multiple blockchains using both on and off-chain functions.
Deepwaters core applications are referred to as Deepwaters Elements. They include:
You will notice below there is a heavy focus in the early stages around our exchange and back-end infrastructure. The reasoning behind this is that the success of this project boils down to two key areas, both of which are linked to one another:
-Platform user volume
Platform usage will require offering a superior trading solution to existing trading venues within the space. This means having the necessary infrastructure in place to support future growth, but more importantly having the liquidity to support all trades regardless of size. The Deepwaters platform generates revenue through trading fees. Having more trading volume not only generates more revenues for the platform, but also reduces the spread on the orderbook, which in turn attracts more traders. More fees and volume also attract more liquidity, allowing better RFQ pricing. This creates a virtuous cycle.
This roadmap is broken into different releases: Testnet, Beta, and Version 1. During testnet we will be releasing a working version of our platform. This will be live on testnet networks for Ethereum, Polygon, and Avalanche. The primary focus during this time period will be on testing, monitoring, and improving. The backend infrastructure, pricing algorithm, liquidity pool design will be updated throughout this time and into the end 2022.
The beta release will be live on mainnet for Avalanche, Ethereum, and Polygon networks. During this time will be the launch of the WTR & ZRB tokens along with our incentivization program.
Users will be able to purchase and lockup WTR tokens for boosted rewards that come with providing liquidity, using the lending market, and minting ZRB.
Version 1 of the platform will be the launch of our governance program. The community will be able to submit proposals, participate in voting, and determine the direction of the WTR protocol going forward.