Spartan Protocol: project introduction of Uniswap+ Synthetix+MakerDAO | on coin security intelligent chain

From Uniswap, a decentralized exchange in ethereum ecology in the first generation, to Sushiswap, an evolutionary version in the second generation, and Justswap, a wave ecology. The liquidity of an asset seems to be defined by cryptographic investors as the most critical attribute of an asset.

According to Rhythblockbeats, on September 10, COCOIN launched the Spartan Protocol, the first asset liquidity project on cocoin smart chain.

Spartan supports 30 existing project tokens on the coinage chain and aims to solve various problems that arise with existing AMM protocols and synthetic assets.

SPARTA Native Assets (SPARTA)

SPARTA serves as the common clearing asset for this liquidity protocol, and all liquidity pools can be strung together and the absolute purchasing power of all assets within the system can be perceived.

The total number of SPARTA is 300 million. Unlike other mobile mining projects, SPARTA distributes in the form of Proof of Burn. Since most DeFi projects now issue project governance tokens at near zero cost to project users through fluid mining. This also led to these governance tokens without the support of basic value in the market by users to sell off.

SPARTA needs to have a strong underlying value underpinning for the entire agreement's underlying assets, liquidation assets, and collateral assets. Proof of Burn means that a user needs to permanently destroy a token in exchange for a new one.

SPARTA's initial 100 million will be made available to users to mine in the form of BNB and BEP2 class tokens. The remaining 200,000,000 will be kept in the liquidity pool and distributed to all liquidity providers, initially at a rate of 35% per year and then decreasing by 3% per year for 10 years. To consolidate SPARTA's value, the contract layer will set up rate destruction mechanisms.

The SPARTA team will not reserve any SPARTA tokens, and all tokens will be distributed to network participants in the form described above after the main network goes live.

SpartanSwap

The liquidity pool of Sparta protocol is the core of this protocol and all related applications in the system cannot be separated from the support of the liquidity pool.

SpartanSwap's AMM model

SpartanSwap USES THORCHAIN's AMM algorithm. This algorithm adopts liquidity-sensitive fee to solve the problem of cold start and sliding point of Liquidity. In the Ethereum ecology, most AMMs use a fixed percentage rate (for example, Uniswap charges 0.3% of a single transaction to be put into the liquidity pool as a liquidity fee).

Due to Gas during busy network costs will be high, so the user can choose in the network to complete the tokens exchange, launched a deal but if tokens exchange volume is too large and liquid pool depth is not enough, will cause large slippage, this is very adverse for liquidity providers (such as slippage loss) free of charge from.

Liquidity-sensitive charges are based on the number of slippage points to charge transaction fees. Thanks to the low commission fee of high-performance coIN-security intelligent chain, users no longer need to worry about the high Gas fee charged by the network when making transactions. Instead, users will try to split large transactions into numerous small transactions to avoid the high transaction fee caused by sliding points.

Liquidity providers will also be more willing to provide liquidity to shallower pools because slippage yields are higher than in more liquid pools. At the same time, impatient traders will have to make compromises that will minimise the current problem of fluid mining. Eventually, the transaction fees paid for the slippage will approach zero and the currency in the liquidity pool will be in line with the market price.

The scrip structure in the liquidity pool

If a user wants to provide liquidity for a token, the user needs to inject the token and SPARTA into the liquidity pool. The proportion of users in this pool will be calculated by the following formula:

The user can withdraw the liquidity at any time, and the liquidity pool will return the corresponding amount of token to the user according to the proportion of the user in the pool. Users can also withdraw only one token, in which case the formula of the Vader Protocol will be used:

Sparta Decentralized Autonomous Organization (Sparta andao)

Like other DaOs, SpartanDAO has the right to control various parameters within the contract. Users can vote simply by locking SPARTA into a specified contract to prove their position. The biggest challenge DAO now faces, however, is voter apathy. SpartanDAO used the rewards in the liquidity pool as incentives, but instead of getting rewards as long as they participated in the governance, they could only get rewards if they participated in successful governance proposals, otherwise there would be a punishment mechanism.

Spartan synthetic assets (SpartanSynths)

Synthetic assets are those that are anchored to other asset prices and are used in the lending, leverage and derivatives markets. The composite asset primarily serves the following use cases:

It's used for short selling. If the user is bearish on a target, he or she can print the underlying synthetic asset as collateral, then sell the asset and buy it back at a low price. Users are long. Users can buy synthetic assets and expect them to liquidate when prices rise. Users want to provide a market for an asset, regardless of whether prices rise or fall.

The Spartan protocol provides a perfect solution for all three of these requirements.

Composite assets are produced by printing

The user may print and cast a composite asset of all assets that have a feed price (which may be provided internally or externally by the system). First, the user needs to become a liquidity provider in the liquidity pool, and then lock up the share in the liquidity pool of this user and generate the corresponding value of the synthetic assets.

A leveraged market for synthetic assets

The printer of the synthetic asset can enlarge the lever continuously through the synthetic asset: the printer can print the synthetic asset with the collateral, sell the synthetic asset, and print the synthetic asset again with the proceeds after issuing as the collateral. As the number of operation cycles mentioned above increases, the leverage ratio also increases, and the probability of liquidation will also increase. A buyer of synthetic assets would simply wait for the price of the synthetic asset to rise, and eventually the printer's collateral would be liquidated. In all cases, liquidity providers in all pools benefit.

SpartanLending market

Rhythblockbeats believes that Sparta's lending market is similar to the synthetic asset market, which can also meet users' demand for leveraged trades. The user only needs to provide another asset as collateral before lending it out. When the value of the mortgaged property is less than the value of the borrowed property, the mortgaged property is liquidated.

All liquidity pools will be part of the lending market, providing liquidity to the lending market, and all liquidations will be carried out in the corresponding liquidity pools.

Unlike synthetic assets, the lending market was designed to improve the capital efficiency of the Spartan system.

Spartan teams and communities

The Spartan protocol is made up of a group of anonymous developers. The Spartan community has contributed greatly to the construction and iteration of the Spartan protocol. For SPARTA holders, SpartanDAO will give them the right to make important decisions that will appear in the agreement.

Drawing on the strengths of Uniswap, THORChain, Synthetix, MakerDAO, and the Vader/Vether Protocol, the Spartan Protocol will provide a complete integrated solution for synthetic assets, asset lending, and asset liquidity. The Spartan agreement will not require much governance at the level of system parameter modification and contract upgrade because of the various impacts that system governance will have on mortgage assets.

Spartan Protocol's official website

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