Blackswan Hedging Platform Blueprint
Cryptocurrency markets are heavily correlated and full of downside tail risk. While there are many tokens competing to achieve the highest positive growth during these periods, virtually none of the projects plan for the opposite, extreme contraction during market cycles.
Blackswan maintains stability not only during market growth cycles but unleashes growth during contractionary market periods with the aim to move as an anti-fragile asset or uncertainty index.
As we approach the SWAN v2 launch, weekly updates will be posted going over development progress, changes in plans, and new features we plan on implementing into the Blackswan ecosystem.
Remember!, the current SWAN token being traded on MATIC will be redeemable 1:1 for the new SWAN v2 token during migration.
Bridge Aggregator
We have explored a variety of EVM compatible chains and have come to see the importance of bridging and the lack of mature infrastructure built around it. With the launch of the Blackswan hedging platform, an accompanying bridge aggregation application will be launched.
The bridge aggregator will take advantage of existing cross chain liquidity and bridges built by other teams in order to offer the most comprehensive and liquid bridge currently on the market.
This will include same-transaction cross chain routing, for example MATIC -> Ethereum -> Terra and much more allowing users to bridge to any chain they desire, even if a direct bridge has not been built yet.
Cost optimization will also be taken into account, routing funds through bridges with the lowest possible fees based on available liquidity. For example, if a user wants to bridge $20,000 and a 0 fee bridge only contains $10,000 in available liquidity, the remaining $10,000 will be routed to the next most liquid bridge.
A small fee will be taken from every transaction sent through the universal bridge, whether this be a flat fee or competitive percentage, has yet to be determined. Funds accrued from the bridge will be siphoned into the Blackswan Fund supporting the SWAN v2 token.
Hedging Platform
The Blackswan hedging platform is a delta-neutral yield farm optimizer. This means that all strategies offered on the platform will hedge out price risk of the asset involved in the farm. In addition, auto-compound functionality will increase returns and decrease gas costs to the end user.
Offerings will span cross-chain, depending on derivative liquidity and farming opportunities.
Users will make a deposit to supported farms consisting of 33% stablecoin and 66% LP token. The LP token will be staked in order to earn the yield of the farm, while the stablecoin is sent to a decentralized derivatives platform such as Deus Finance in order to short the associated asset. The yield earned by the user will be the difference in farm yield and the interest paid to maintain the short position.
Returns will be compounded automatically, with funds being directed to maintain the short position and LP position evenly.
We have already identified decentralized short liquidity as a potential issue that may plague the platform down the line, and limit the number of max deposits per farm. In order to tackle this, should the need arise, an associated application will be built on the Blackswan platform offering the lending and staking of assets in order to supplement this liquidity.
A small fee will be taken in the yield earned by the user when they decide to exit / withdraw their position. These funds will be siphoned into the Blackswan Fund supporting the SWAN v2 token.
Current Progress
Currently, we have hired a UI / UX designer to begin working on the frontend interface which will be shared with the public as it is completed. Our development team is working full force on the back-end of these applications.
It is important to remember that development can take time, and a quality product will not emerge overnight. We do however want to be optimistic with our timeline, and will be posting deadlines as we approach a final product.
We cannot wait to show you all what we have been working on, and these products are just the first of many to come. Blackswan SAFU 🦢.
