Degis Litepaper Release

Announcement (2021–12–31)

Happy new year and we are happy to announce that our second phase testnet launch will confirmed be in Jan 2022 and mainnet launch & IDO in Feb 2022.

Check out our litepaper below for more information regarding Degis.

  1. Project Introduction

1.1 What is Degis

Degis is the next generation all-in-one protection protocol. To be straightforward, we want to completely disrupt the traditional protection market and let those conservative guys out.

Degis leverages blockchain technology to solve two key problems in traditional protection market, which are excessive operation cost and non-transparent claims.

1.1.1 Excessive operating losses

Think about a recent experience buying protection. A salesman in a suit and leather shoes comes to you, greeting you every week and giving gifts on holidays. When you want to settle a claim, you need to upload plenty of documents to the protection company for reviewing, and they may assign someone to verify in person. Except this, a group of elites who graduated from prestigious schools, sitting in the office, and calculating the price of protection to make sure that the protection company can always win and make money. Where do these people’s wages come from? Nothing comes for free. These high operating costs are ultimately pressured on consumers.

1.1.2 Non-transparent claims

To make more profit, protection companies always set up complex legal provisions and claim settlement processes in their contract to delay, reduce and reject claims. You never know how much they earn. You never know whether they will pay your claim, as well as how much and how long will they pay you. That’s because all data and rights are in their hands, and will never return it back to users.

In summary, those traditional protection companies are like bloated dragons, charging expenses and secretly earning customers’ money.

1.1.3 How Degis beats traditional protection?

Blockchain and smart contracts! Blockchain is highly transparent, decentralized, non-tamperable, automatic, etc. Which means we do not need to hire people to sell, explain, check, payout…All things are done automatically by smart contracts on blockchain. Also, users do not need to worry about claims. If they meet the claim conditions in smart contracts, the payouts will be automatically sent to their account and no one can stop it from happening!

1.2 Degis Product Matrix — — Four forms of future protection

In our view, by leveraging blockchain and smart contract technology, there will be four forms of protection in the future to meet all types of need.

1.2.1 Token Model

By using smart contracts to stake reserves, one can tokenize one certain protection event and use AMM pool to make it circulate in the secondary market. At the expiry date, smart contracts will execute the protection policy automatically. For example, token price protection is exactly this kind.

1.2.2 NFT Model

Degis uses AI algorithms to predict the price of each protection and sell to buyers as an NFT. Liquidity providers can stake their money in the protection pool to share the risk of compensation and enjoy the income of protection, while buyers can enjoy automatic and transparent protection policy. Flight delay protection is of this kind.

1.2.3 Meta Market

All current existing protection protocols, NFTs, and tokens can be traded in the meta market which is an aggregator. Not only products from Degis, all on-chain protection from other platforms can be exchanged in it. Meanwhile, users can generate their own protection easily by setting some simple variables without writing smart contracts, and trade them in the meta market.

1.2.4 DAO Model

Protocols form a protection DAO, where they take risks together. When one protocols is hacked or attacked, a proportion of the total staked fund will be used to compensate this loss. Decisions are also made together by all members.

2. Version 1 Products

2.1 Token Price Protection (Naughty Price)

2.1.1 Creator

To mint 1 protection token, the creator should stake $1 in the policy pool. If the certain event corresponding to the protection token happens, the staked money will be paid to people whoever hold the protection token. If the corresponding event does not happen, creators will get back the money. After creating, creators can hold or sell the protection token.

2.1.2 Buyer/Seller

Buyers and Sellers purchase or sell protection tokens freely in the swap pool. The holder of protection token can get payout if the according event happens. For example, the current price of AVAX is $60, and the protection trigger event is that AVAX price is below $30 at the expiry date. If the price of AVAX drops below $30 at the expiry date, then the protection token holder can use each protection token to claim $1 from the policy pool which is 100% collateralized.

Purchase Cost: 0.1×(1+2%)=0.102

Payout Profit: 1×(1–1%)-0.102=0.888

Buyer’s profit at difference AVAX Price when the insurance token is $0.1, the transaction is 2%, the redeem fee is 1%.

Sell Profit: -1+0.1+(1–1%)=0.09

Payout Lost: -1+0.1=-0.9

Seller’s profit at difference AVAX Price when the insurance token is $0.1, the transaction is 2%, the redeem fee is 1%.

2.1.3 Provider

Liquidity providers provide liquidity to the swap pool (AMM pool), which means staking both USDT and protection token in the swap pool. The transaction fee of the swap pool is 2%. When a buyer wants to use $100 to buy protection token, $2 will be given to LP directly, then the left $98 will be used to swap protection token from the pool. To avoid large impermanence loss caused by the possible huge volatility of prices near the expiry date, we will stop transaction three days before the expiry date.

2.2 Flight Delay Protection (Miserable Flight)

2.2.1 Buyer

The price of flight delay protection may be different due to flight, buying time, and sales volume, which is calculated by our core AI algorithm. The payout policy is shown below. Each protection is sold as an NFT. If the flight is delayed, then the corresponding payout will be given to the protection holder automatically.

2.2.2 Provider

Liquidity providers who deposit their money in the pool to improve the payout ability can be regarded as protection sellers. All protection sales revenue will be put into the protection pool. Liquidity providers can share 50% of the income as payback.

3. Tokenomics

3.1 Distribution

l User Incentives: 40%

40 million DEG in total. To reward users’ participation and contribution on Degis

l Team: 12%

12 million DEG in total. Locked for 15 months once Degis launched on mainnet and then released quarterly in 15 months.

l Growth Fund: 12%

7.5 million DEG in total. 1.5million DEG are released at TGE. 6 million DEG are released quarterly in 24 months.

l Advisor: 3%

Same locking mechanism with the team.

l Core Round: 5%

Total release in Core Round is 5 million DEG. Locked for 12 months once Degis launched on mainnet and then released quarterly in 12 months.

l Seed Round: 16%

Total release in Seed Round is 16million DEG. 10% of which are released at TGE, and 90% locked for 12 months once Degis launched on mainnet and then released quarterly in 12 months.

l Strategic Round: 3%

Total release in Strategic Round is 3 million DEG. 12.5% of which are released at TGE, and 97.5% locked for 6 months once Degis launched on mainnet and then released quarterly in 12 months.

l Public Sale: 2%

Total release in Public Sale is 2 million. 50% TGE

l Reserves: 5%

5 million DEG in total. Used for emergency events (decided by community).

3.2 Release schedule

4. Mining

Mining is designed to incentive Degis ecosystem contributors. Based on the participating situation, we will make adjustment accordingly.

4.1 Farming

DEG will be distributed to LP pools. LP will share the DEG according to their LP token proportion.

4.2 Staking

4.2.1 Stake DEG

DEG will be rewarded to stakers who stake their DEG. Holders can set lock-up time to increase the allocation weight. The original weight for flexible staking is 1x, and the weight increases linearly to 2x when the lock-up time increases to 12 months.

4.2.2 Stake DEG and DEX LP token

DEG will be rewarded to stakers who stake both DEG and DEX LP tokens of DEG pairs. The rewards calculated rule is the same to staking DEG.

4.3 Purchase incentive

Buyers will get buyer tokens when they consume on Degis platform, e.g. get 12 buyer tokens after consuming $12. Buyers can deposit their buyer tokens in the incentive pool. The pool will burn the inside buyer tokens every 24 hours and rewards DEG to buyers according to their share.

5. Treasury box

5.1 Treasury box pool

Part of the platform revenue will be put into the Treasury box. Currently, 40% of the flight delay income, and 1% of the protection token minted value will be put in the Treasury box.

5.2 One-million-dollar giving back plan

Degis launches a one-million-dollar giving back plan. In the next 2 years, Degis will ensure that at least $10,000 will be distributed in the Treasury box every week.

5.3 Rule

DEG holders can stake their DEG to play the Treasury box. Users can buy a ticket after staking 10 DEG. Every week, there will be a random four-digit number generated by Chainlink oracle which has 10,000 possibilities. Each ticket lets the user guess a number before the draw. After drawing, tickets which only guess the last digit right will share 20% of the Treasury box pool together. Tickets which guess the last two, last three and all four digits right will also respectively share 20% of the Treasury box pool. The remaining 20% will be left to the next term.

When sharing the Treasury box after guessing right, there will be different weights according to staking time. If the DEG have been staked for x terms, then the weight of the buying tickets will be 1+ln(x).

6. Roadmap

Q3 2021 (Completed)

  • Feasibility Research
  • Data Analysis
  • Product Development

Q4 2021 (Completed)

  • Smart Contract Development
  • Website Release
  • Social Media Release
  • Community Building
  • Testnet Phase 1

Q1 2022

  • Auditing
  • Testnet Phase 2
  • Mainnet Launch
  • IDO & TGE
  • DEX & CEX Listing
  • Partnership with Avalanche Eco projects

Q2 2022

  • Avalanche major tokens protection
  • More NFT-model protection

Q3 2022

  • Version 2 Launch
  • Metaverse & GameFi add-ins

Q4 2022

  • Initial launch of Meta Market
  • Cross-Chain Extending
  • Community Governance

Q1-Q2 2023

  • All-in-one protection aggregation
  • Community designed products

Q3 2023

  • DAO-Model Protection

For PDF version please click here

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